Applied Materials, Inc. $AMAT Position Cut by Avity Investment Management Inc.

Key Points

• Avity Investment Management cut its Applied Materials stake by 21.8% in the second quarter, selling 36,642 shares. The firm still held 131,067 shares worth approximately $94.8 million, representing 6% of its portfolio.
• Analysts remain broadly bullish, with a consensus “Moderate Buy” rating and average price target of $603.23, supported by AI-related semiconductor demand and expectations for earnings growth. However, valuation concerns, insider selling and an options market pricing an approximately 11% earnings move point to elevated risk.
• Applied Materials recently beat quarterly earnings and revenue estimates, reporting $2.86 in EPS and $7.91 billion in revenue, up 11.4% year over year. The company also declared a quarterly dividend of $0.53 per share, implying a 0.4% annualized yield.

Avity Investment Management Inc. decreased its position in shares of Applied Materials, Inc. (NASDAQ:AMAT - Free Report) by 21.8% during the 2nd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 131,067 shares of the manufacturing equipment provider's stock after selling 36,642 shares during the period. Applied Materials accounts for approximately 6.0% of Avity Investment Management Inc.'s portfolio, making the stock its biggest holding. Avity Investment Management Inc.'s holdings in Applied Materials were worth $94,761,000 at the end of the most recent quarter.

Other institutional investors and hedge funds also recently added to or reduced their stakes in the company. Capital Research Global Investors increased its stake in Applied Materials by 119.8% in the fourth quarter. Capital Research Global Investors now owns 32,707,049 shares of the manufacturing equipment provider's stock valued at $8,405,458,000 after purchasing an additional 17,829,377 shares during the period. Norges Bank acquired a new position in shares of Applied Materials in the fourth quarter valued at approximately $2,858,543,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its position in Applied Materials by 617.2% in the 3rd quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 9,129,483 shares of the manufacturing equipment provider's stock valued at $1,869,170,000 after buying an additional 7,856,576 shares during the last quarter. Auto Owners Insurance Co grew its position in Applied Materials by 25,824.4% in the 4th quarter. Auto Owners Insurance Co now owns 3,370,167 shares of the manufacturing equipment provider's stock valued at $86,610,000 after buying an additional 3,357,167 shares during the last quarter. Finally, Coatue Management LLC increased its stake in Applied Materials by 78.7% in the 4th quarter. Coatue Management LLC now owns 5,984,332 shares of the manufacturing equipment provider's stock valued at $1,537,913,000 after buying an additional 2,635,284 shares during the period. Hedge funds and other institutional investors own 80.56% of the company's stock.

Applied Materials News Roundup

Here are the key news stories impacting Applied Materials this week:

• Positive Sentiment: Analysts remain broadly optimistic about AMAT, with consensus price targets implying additional upside. Citi reportedly identified Applied Materials as a top semiconductor pick following the sector’s selloff, while other coverage highlights the company’s strong position in deposition, etch, inspection and wafer-processing equipment. Are Wall Street Analysts Predicting Applied Materials Stock Will Climb or Sink?
• Positive Sentiment: AI infrastructure spending is supporting the outlook for semiconductor manufacturing equipment. A potential Tesla-SpaceX “Terafab” buildout, along with rising demand for AI chips, advanced packaging and memory, could create additional opportunities for Applied Materials. Tesla-SpaceX Terafab Bet
• Positive Sentiment: Expectations for the August 13 report are favorable: analysts anticipate earnings growth and a potential beat. Applied Materials’ previous quarter exceeded consensus on both earnings and revenue, with revenue up 11.4% year over year, providing a constructive comparison for the upcoming release. Applied Materials Reports Next Week
• Neutral Sentiment: Options markets are pricing a potentially large earnings move, reportedly around 11%. That highlights significant event risk: a strong report and outlook could extend the rally, but merely meeting high expectations may not be enough. Options Market and AMAT’s Earnings Move
• Negative Sentiment: Erste Group Bank lowered its rating on AMAT to Hold. The downgrade adds pressure after the stock’s strong rebound and reinforces concerns that substantial AI optimism is already reflected in the valuation. Applied Materials Rating Lowered to Hold
• Negative Sentiment: Investor Michael Burry’s disclosed short positions in AI-linked semiconductor names, including Applied Materials, have revived concerns about an AI-stock reversal and heightened volatility. As Burry Targets AI Chip Names

Analysts Set New Price Targets

Several research firms have recently commented on AMAT. Wall Street Zen cut shares of Applied Materials from a "buy" rating to a "hold" rating in a research note on Saturday, August 1st. Bank of America boosted their price target on shares of Applied Materials from $540.00 to $720.00 and gave the stock a "buy" rating in a research note on Tuesday, June 23rd. Barclays raised their price objective on shares of Applied Materials from $500.00 to $590.00 and gave the company an "overweight" rating in a research report on Thursday, June 11th. Citigroup reaffirmed a "buy" rating on shares of Applied Materials in a report on Monday, August 3rd. Finally, Zacks Research upgraded Applied Materials from a "hold" rating to a "strong-buy" rating in a research report on Wednesday, July 1st. One investment analyst has rated the stock with a Strong Buy rating, twenty-six have issued a Buy rating and seven have issued a Hold rating to the company's stock. According to MarketBeat, Applied Materials currently has a consensus rating of "Moderate Buy" and an average price target of $603.23.

Insider Activity at Applied Materials

In related news, insider Prabu G. Raja sold 10,000 shares of the business's stock in a transaction dated Thursday, June 18th. The shares were sold at an average price of $633.53, for a total value of $6,335,300.00. Following the sale, the insider directly owned 346,642 shares in the company, valued at $219,608,106.26. The trade was a 2.80% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Thomas J. Iannotti sold 9,250 shares of the business's stock in a transaction dated Tuesday, June 16th. The stock was sold at an average price of $599.77, for a total transaction of $5,547,872.50. Following the completion of the sale, the director owned 40,559 shares in the company, valued at $24,326,071.43. This represents a 18.57% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 278,088 shares of company stock valued at $169,654,805 in the last 90 days. 0.30% of the stock is owned by corporate insiders.

Applied Materials Stock Up 2.2%

Shares of NASDAQ AMAT opened at $539.14 on Friday. The stock has a market capitalization of $428.06 billion, a price-to-earnings ratio of 50.62, a price-to-earnings-growth ratio of 1.37 and a beta of 1.61. Applied Materials, Inc. has a 52 week low of $154.46 and a 52 week high of $739.67. The firm has a 50-day moving average price of $559.47 and a 200 day moving average price of $437.71. The company has a quick ratio of 1.80, a current ratio of 2.51 and a debt-to-equity ratio of 0.22.

Applied Materials (NASDAQ:AMAT - Get Free Report) last issued its earnings results on Thursday, May 14th. The manufacturing equipment provider reported $2.86 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.68 by $0.18. The company had revenue of $7.91 billion during the quarter, compared to analysts' expectations of $7.68 billion. Applied Materials had a net margin of 29.31% and a return on equity of 36.97%. The firm's quarterly revenue was up 11.4% compared to the same quarter last year. During the same period last year, the company posted $2.39 earnings per share. Applied Materials has set its Q3 2026 guidance at 3.160-3.560 EPS. Equities research analysts anticipate that Applied Materials, Inc. will post 12.17 EPS for the current fiscal year.

Applied Materials Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Thursday, August 20th will be issued a dividend of $0.53 per share. The ex-dividend date of this dividend is Thursday, August 20th. This represents a $2.12 annualized dividend and a yield of 0.4%. Applied Materials's payout ratio is currently 19.91%.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source