Applied Materials, Inc. $AMAT Shares Acquired by Welch Group LLC

Key Points

• Welch Group LLC sharply increased its stake in Applied Materials in Q1, boosting holdings by 1,040.8% to 21,881 shares valued at about $7.48 million.
• Institutional ownership remains heavy, with 80.56% of AMAT stock held by institutional investors and hedge funds, while several other firms also increased their positions.
• Analysts remain broadly bullish: Applied Materials has a Moderate Buy consensus and a $518.19 average target price, even as some insiders recently sold shares and the stock traded at $626.84.

Welch Group LLC lifted its holdings in shares of Applied Materials, Inc. (NASDAQ:AMAT - Free Report) by 1,040.8% in the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 21,881 shares of the manufacturing equipment provider's stock after purchasing an additional 19,963 shares during the quarter. Welch Group LLC's holdings in Applied Materials were worth $7,479,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds and other institutional investors have also recently modified their holdings of the business. Brighton Jones LLC lifted its position in Applied Materials by 28.0% in the fourth quarter. Brighton Jones LLC now owns 12,674 shares of the manufacturing equipment provider's stock valued at $2,061,000 after buying an additional 2,771 shares during the last quarter. Sivia Capital Partners LLC increased its position in shares of Applied Materials by 26.7% during the second quarter. Sivia Capital Partners LLC now owns 3,225 shares of the manufacturing equipment provider's stock valued at $590,000 after acquiring an additional 679 shares during the last quarter. Forefront Wealth Partners LLC acquired a new stake in shares of Applied Materials during the second quarter valued at about $410,000. Schnieders Capital Management LLC. raised its stake in shares of Applied Materials by 30.1% in the 2nd quarter. Schnieders Capital Management LLC. now owns 15,003 shares of the manufacturing equipment provider's stock valued at $2,747,000 after acquiring an additional 3,469 shares during the period. Finally, Sei Investments Co. raised its stake in shares of Applied Materials by 59.3% in the 2nd quarter. Sei Investments Co. now owns 422,694 shares of the manufacturing equipment provider's stock valued at $77,383,000 after acquiring an additional 157,426 shares during the period. 80.56% of the stock is owned by institutional investors and hedge funds.

Insiders Place Their Bets

In other news, Director Thomas J. Iannotti sold 9,250 shares of the stock in a transaction on Tuesday, June 16th. The stock was sold at an average price of $599.77, for a total value of $5,547,872.50. Following the sale, the director directly owned 40,559 shares in the company, valued at approximately $24,326,071.43. This trade represents a 18.57% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Prabu G. Raja sold 10,000 shares of Applied Materials stock in a transaction on 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 completion of the transaction, the insider owned 346,642 shares of the company's stock, valued at approximately $219,608,106.26. This trade represents a 2.80% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 199,767 shares of company stock valued at $114,104,709. 0.30% of the stock is owned by company insiders.

Analysts Set New Price Targets

Several equities analysts have recently commented on AMAT shares. HSBC began coverage on shares of Applied Materials in a report on Friday, May 8th. They issued a "buy" rating and a $517.00 price objective on the stock. Bank of America boosted their target price on Applied Materials from $540.00 to $720.00 and gave the company a "buy" rating in a research report on Tuesday. Jefferies Financial Group upped their price target on Applied Materials from $510.00 to $770.00 and gave the stock a "buy" rating in a research note on Friday. Royal Bank Of Canada raised their price target on Applied Materials from $500.00 to $520.00 and gave the stock an "outperform" rating in a research report on Friday, May 15th. Finally, Zacks Research cut Applied Materials from a "strong-buy" rating to a "hold" rating in a research note on Monday, April 27th. Twenty-seven analysts have rated the stock with a Buy rating and eight have given a Hold rating to the company's stock. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $518.19.

Applied Materials Trading Down 6.2%

Shares of AMAT stock opened at $626.84 on Friday. The company has a debt-to-equity ratio of 0.22, a quick ratio of 1.80 and a current ratio of 2.51. The stock has a market capitalization of $497.69 billion, a P/E ratio of 58.86, a price-to-earnings-growth ratio of 1.86 and a beta of 1.67. The company has a 50 day moving average price of $473.54 and a 200 day moving average price of $377.36. Applied Materials, Inc. has a fifty-two week low of $154.46 and a fifty-two week high of $669.22.

Applied Materials (NASDAQ:AMAT - Get Free Report) last announced its earnings results on Thursday, May 14th. The manufacturing equipment provider reported $2.86 earnings per share for the quarter, topping the consensus estimate of $2.68 by $0.18. The firm had revenue of $7.91 billion for the quarter, compared to the consensus estimate of $7.68 billion. Applied Materials had a net margin of 29.31% and a return on equity of 36.97%. The firm's revenue for the quarter was up 11.4% on a year-over-year basis. During the same period in the prior year, the firm earned $2.39 EPS. Applied Materials has set its Q3 2026 guidance at 3.160-3.560 EPS. Equities research analysts predict that Applied Materials, Inc. will post 12.1 EPS for the current fiscal year.

Applied Materials Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Thursday, August 20th will be given a dividend of $0.53 per share. The ex-dividend date of this dividend is Thursday, August 20th. This represents a $2.12 dividend on an annualized basis and a dividend yield of 0.3%. Applied Materials's dividend payout ratio is currently 19.91%.

Applied Materials News Roundup

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

• Positive Sentiment: Applied Materials introduced new systems for DRAM and advanced packaging, expanding its role in AI chip manufacturing and potentially boosting future demand. Applied Materials Introduces New Systems to Accelerate DRAM and Advanced Packaging for AI Chips
• Positive Sentiment: Analysts said AMAT’s event highlighted strong opportunities in DRAM and advanced packaging, reinforcing the company’s AI-driven growth narrative. Applied Materials' event focuses on DRAM, and advanced packaging: analysts
• Positive Sentiment: Wall Street commentary remains constructive, with analysts still confident in Applied Materials’ strong competitive position. AMAT stock gets thumbs up from Wall Street – analysts remain confident about Applied Materials’ strong market position
• Neutral Sentiment: Some coverage suggests the stock may be looking expensive after its recent rally, which could limit near-term upside even if the long-term AI story stays intact. Applied Materials stock looks pricey—can AI demand justify the rally?
• Neutral Sentiment: One analysis noted that Applied Materials’ aggressive investment strategy may pressure cash flow in the near term, even though it supports longer-term growth. Can AMAT's Investment Strategy Lift Future Cash Flow Growth?

Applied Materials Company 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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