Applied Materials, Inc. $AMAT Position Trimmed by Harbor Island Capital LLC

Key Points

• Harbor Island Capital cut its Applied Materials position by 21.7% in the second quarter, selling 25,564 shares. Despite the reduction, AMAT remains the firm’s largest holding at 17.8% of its portfolio, valued at $66.9 million.
• Applied Materials reported quarterly EPS of $3.50 and revenue of $9.12 billion, exceeding analyst estimates, while revenue increased 24.8% year over year. The company also declared a quarterly dividend of $0.53 per share.
• Analyst sentiment remains favorable, with an average “Moderate Buy” rating and a $658.45 price target, although insiders have sold approximately $171.4 million of shares over the past 90 days.

Harbor Island Capital LLC decreased its holdings in shares of Applied Materials, Inc. (NASDAQ:AMAT - Free Report) by 21.7% in the second quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 92,498 shares of the manufacturing equipment provider's stock after selling 25,564 shares during the period. Applied Materials accounts for 17.8% of Harbor Island Capital LLC's portfolio, making the stock its largest position. Harbor Island Capital LLC's holdings in Applied Materials were worth $66,876,000 as of its most recent SEC filing.

Several other large investors have also recently made changes to their positions in the business. Cornerstone Financial Management LLC purchased a new stake in shares of Applied Materials in the 4th quarter worth approximately $25,000. Wilkerson Advisory Group LLC bought a new position in Applied Materials during the 4th quarter valued at approximately $26,000. Harborfront Financial Group LLC purchased a new position in Applied Materials during the second quarter valued at $27,000. Financial Freedom LLC purchased a new position in Applied Materials during the first quarter valued at $28,000. Finally, Dogwood Wealth Management LLC boosted its holdings in Applied Materials by 52.4% in the fourth quarter. Dogwood Wealth Management LLC now owns 128 shares of the manufacturing equipment provider's stock worth $33,000 after acquiring an additional 44 shares in the last quarter. 80.56% of the stock is currently owned by hedge funds and other institutional investors.

Applied Materials Stock Down 3.6%

AMAT stock opened at $441.85 on Wednesday. The stock has a market capitalization of $350.65 billion, a P/E ratio of 38.09, a P/E/G ratio of 1.28 and a beta of 1.60. The company has a debt-to-equity ratio of 0.20, a current ratio of 2.42 and a quick ratio of 1.79. Applied Materials, Inc. has a 1-year low of $154.46 and a 1-year high of $739.67. The business has a fifty day moving average price of $544.29 and a 200-day moving average price of $459.28.

Applied Materials (NASDAQ:AMAT - Get Free Report) last released its quarterly earnings data on Thursday, August 13th. The manufacturing equipment provider reported $3.50 EPS for the quarter, beating the consensus estimate of $3.40 by $0.10. Applied Materials had a return on equity of 38.02% and a net margin of 30.05%.The company had revenue of $9.12 billion for the quarter, compared to analysts' expectations of $8.99 billion. During the same period last year, the firm posted $2.48 earnings per share. Applied Materials's revenue was up 24.8% compared to the same quarter last year. Applied Materials has set its Q4 2026 guidance at 3.820-4.220 EPS. Equities analysts forecast that Applied Materials, Inc. will post 12.76 earnings per share for the current fiscal year.

Applied Materials Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Thursday, August 20th will be issued a dividend of $0.53 per share. This represents a $2.12 dividend on an annualized basis and a dividend yield of 0.5%. The ex-dividend date of this dividend is Thursday, August 20th. Applied Materials's dividend payout ratio (DPR) is presently 18.28%.

Insider Activity

In related news, SVP Omkaram Nalamasu sold 24,263 shares of the stock in a transaction that occurred on Tuesday, June 16th. The shares were sold at an average price of $593.43, for a total transaction of $14,398,392.09. Following the transaction, the senior vice president owned 146,916 shares in the company, valued at $87,184,361.88. This represents a 14.17% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Thomas J. Iannotti sold 9,250 shares of the firm's stock in a transaction that occurred on 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 position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders have sold 281,692 shares of company stock worth $171,378,059. 0.30% of the stock is owned by corporate insiders.

Analyst Upgrades and Downgrades

Several brokerages have recently weighed in on AMAT. Raymond James Financial set a $650.00 price target on Applied Materials in a report on Wednesday, June 10th. Seaport Research Partners reissued a "buy" rating and set a $575.00 price objective on shares of Applied Materials in a research report on Friday, August 14th. Cantor Fitzgerald reissued an "overweight" rating on shares of Applied Materials in a research report on Friday, August 14th. The Goldman Sachs Group restated a "buy" rating and set a $645.00 price objective on shares of Applied Materials in a research note on Monday, August 3rd. Finally, Wolfe Research lifted their target price on shares of Applied Materials from $500.00 to $550.00 and gave the stock an "outperform" rating in a report on Friday, May 15th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-seven have given a Buy rating and five have given a Hold rating to the company's stock. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average target price of $658.45.

Key Applied Materials News

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

• Positive Sentiment: UBS raised its price target to $695 and maintained a Buy rating, implying substantial potential upside from recent trading levels. The upgrade reflects continued confidence in Applied Materials’ semiconductor-equipment business. Tickerreport.com article
• Positive Sentiment: Erste Group lifted its FY2027 earnings-per-share forecast to $18.56 from $17.13. Although the firm retained a Hold rating, the higher estimate suggests improving expectations for long-term demand and profitability.
• Neutral Sentiment: Analysts continue to describe Applied Materials’ longer-term prospects favorably, with the company viewed as a beneficiary of semiconductor and artificial-intelligence infrastructure investment. Comparisons with Corning also highlight AMAT’s exposure to the chip-manufacturing equipment side of the AI supply chain. Corning versus Applied Materials article
• Negative Sentiment: Higher oil prices and a global bond selloff pushed the 10-year Treasury yield toward 4.79%. Rising yields increase corporate financing costs and reduce the present value of future earnings, creating pressure on higher-valuation technology and semiconductor stocks. Semiconductor stocks trade down article
• Negative Sentiment: Semiconductor stocks broadly declined as investors reassessed expensive growth stocks in response to the jump in long-term interest rates. Applied Materials’ elevated valuation and relatively high market sensitivity make it vulnerable to this risk-off rotation. Semiconductor stocks slide article

Applied Materials Profile

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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