Primecap Management Co. CA lowered its position in shares of Applied Materials, Inc. (NASDAQ:AMAT – Free Report) by 11.2% in the second quarter, Holdings Channel reports. The institutional investor owned 1,042,926 shares of the manufacturing equipment provider’s stock after selling 131,200 shares during the period. Primecap Management Co. CA’s holdings in Applied Materials were worth $754,035,000 as of its most recent filing with the SEC.
Other hedge funds and other institutional investors have also made changes to their positions in the company. Cornerstone Financial Management LLC acquired a new position in shares of Applied Materials during the fourth quarter worth about $25,000. Wilkerson Advisory Group LLC acquired a new stake in Applied Materials in the fourth quarter valued at about $26,000. Harborfront Financial Group LLC purchased a new stake in Applied Materials in the 2nd quarter valued at approximately $27,000. Financial Freedom LLC purchased a new stake in Applied Materials in the 1st quarter valued at approximately $28,000. Finally, Joseph Group Capital Management acquired a new position in Applied Materials during the 4th quarter worth approximately $31,000. Hedge funds and other institutional investors own 80.56% of the company’s stock.
Applied Materials Stock Down 0.1%
Applied Materials stock opened at $479.76 on Thursday. The company has a debt-to-equity ratio of 0.20, a quick ratio of 1.79 and a current ratio of 2.42. The firm has a market capitalization of $380.74 billion, a price-to-earnings ratio of 41.36, a price-to-earnings-growth ratio of 1.03 and a beta of 1.61. Applied Materials, Inc. has a fifty-two week low of $154.46 and a fifty-two week high of $739.67. The stock’s fifty day moving average is $556.61 and its two-hundred day moving average is $455.61.
Applied Materials Announces Dividend
The firm also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Thursday, August 20th will be given a $0.53 dividend. The ex-dividend date is Thursday, August 20th. This represents a $2.12 annualized dividend and a dividend yield of 0.4%. Applied Materials’s dividend payout ratio is currently 18.28%.
Wall Street Analysts Forecast Growth
A number of brokerages have recently issued reports on AMAT. Craig Hallum increased their target price on Applied Materials from $530.00 to $585.00 and gave the stock a “buy” rating in a research note on Friday, August 14th. Morgan Stanley decreased their price target on Applied Materials from $646.00 to $642.00 and set an “equal weight” rating on the stock in a research note on Friday, August 14th. Mizuho dropped their price objective on Applied Materials from $650.00 to $590.00 and set an “outperform” rating on the stock in a report on Tuesday. Seaport Research Partners reissued a “buy” rating and issued a $575.00 target price on shares of Applied Materials in a report on Friday, August 14th. Finally, HSBC restated a “buy” rating and set a $683.00 target price on shares of Applied Materials in a research report on Monday, July 27th. One analyst has rated the stock with a Strong Buy rating, twenty-seven have assigned a Buy rating and five have issued a Hold rating to the stock. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $657.76.
Read Our Latest Analysis on Applied Materials
Insiders Place Their Bets
In other news, Director Thomas J. Iannotti sold 9,250 shares of the firm’s stock in a transaction that occurred on Tuesday, June 16th. The shares were sold at an average price of $599.77, for a total transaction of $5,547,872.50. Following the completion of the transaction, the director directly owned 40,559 shares of the company’s stock, valued at $24,326,071.43. This trade represents a 18.57% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, SVP Timothy M. Deane sold 8,621 shares of Applied Materials stock in a transaction that occurred on Monday, June 15th. The stock was sold at an average price of $590.76, for a total value of $5,092,941.96. Following the transaction, the senior vice president owned 134,631 shares of the company’s stock, valued at $79,534,609.56. This represents a 6.02% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 276,692 shares of company stock valued at $169,030,834. Corporate insiders own 0.30% of the company’s stock.
Trending Headlines about Applied Materials
Here are the key news stories impacting Applied Materials this week:
- Positive Sentiment: AI infrastructure is supporting a new growth cycle. Chipmakers are increasing spending on advanced DRAM, high-bandwidth memory, leading-edge logic and advanced packaging—all areas that benefit Applied Materials’ semiconductor equipment business. The company’s latest quarter showed revenue growth of 24.8% year over year, with earnings and revenue exceeding analyst expectations. Applied Materials Enters a New AI-Driven Growth Cycle
- Positive Sentiment: Services and parts demand remain resilient. Applied Materials’ Applied Global Services (AGS) division reportedly reached record revenue and expanded margins, helped by subscription services, parts demand and higher semiconductor-fab utilization. This recurring revenue can provide stability across equipment cycles. AMAT’s AGS Business Gains Momentum
- Positive Sentiment: Analysts see potential upside after the recent selloff. Consensus price targets imply roughly 35% upside, while another report cited an average target near $641. However, these targets depend on continued earnings-estimate improvements and sustained AI spending. Analyst Upside Potential for AMAT
- Neutral Sentiment: Mizuho remains constructive but lowered its target. The firm reduced its price target from $650 to $590 while maintaining an “outperform” rating, reflecting a more cautious near-term outlook despite expected upside. Mizuho AMAT Price Target Update
- Negative Sentiment: China exposure is the main overhang. Tighter export controls and the emergence of Chinese domestic immersion DUV lithography systems are raising concerns about Applied Materials’ competitiveness and future China sales. Reports caution that not all of the company’s approximately $2.087 billion in quarterly China revenue is immediately threatened, but investors are still pricing in greater regulatory and competitive risk. Applied Materials’ China Problem Is Getting Worse
About Applied Materials
Applied Materials, Inc is a U.S.-based supplier of equipment, services and software used to manufacture semiconductor chips, flat panel displays and other advanced materials. Headquartered in Santa Clara, California, the company designs and sells capital equipment and related technologies that enable production of integrated circuits, display panels and materials used across the electronics supply chain.
Applied Materials’ offerings include process equipment and factory software that support critical steps in device fabrication, such as deposition, etch, implantation, inspection and metrology, as well as systems for packaging and advanced heterogeneous integration.
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