Applied Materials, Inc. $AMAT Shares Bought by Principal Financial Group Inc.

Key Points

• Principal Financial Group increased its Applied Materials stake by 3.0% in the second quarter, adding 28,982 shares to own 1,008,591 shares valued at approximately $729.2 million. Institutional investors collectively hold 80.56% of the company.
• Applied Materials reported a strong fiscal third quarter, with revenue up 24.8% year over year to $9.12 billion and adjusted EPS of $3.50, both above analyst expectations. Management also issued above-consensus fiscal fourth-quarter guidance.
• Despite broadly positive analyst sentiment and an average “Moderate Buy” rating, insiders sold 278,088 shares worth about $169.7 million over the past 90 days, while investor concerns about competition, margins and growth expectations have pressured the stock.

Principal Financial Group Inc. boosted its holdings in Applied Materials, Inc. (NASDAQ:AMAT - Free Report) by 3.0% during the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 1,008,591 shares of the manufacturing equipment provider's stock after acquiring an additional 28,982 shares during the quarter. Principal Financial Group Inc. owned 0.13% of Applied Materials worth $729,211,000 at the end of the most recent quarter.

Other institutional investors also recently added to or reduced their stakes in the company. Brighton Jones LLC raised its stake in shares of Applied Materials by 28.0% during the fourth quarter. Brighton Jones LLC now owns 12,674 shares of the manufacturing equipment provider's stock valued at $2,061,000 after purchasing an additional 2,771 shares in the last quarter. Sivia Capital Partners LLC increased its stake in Applied Materials by 26.7% during the 2nd quarter. Sivia Capital Partners LLC now owns 3,225 shares of the manufacturing equipment provider's stock valued at $590,000 after buying an additional 679 shares during the period. Forefront Wealth Partners LLC bought a new stake in shares of Applied Materials during the 2nd quarter worth about $410,000. Schnieders Capital Management LLC. raised its position in shares of Applied Materials by 30.1% during the 2nd quarter. Schnieders Capital Management LLC. now owns 15,003 shares of the manufacturing equipment provider's stock worth $2,747,000 after buying an additional 3,469 shares in the last quarter. Finally, Sei Investments Co. lifted 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 worth $77,383,000 after acquiring an additional 157,426 shares during the period. Institutional investors and hedge funds own 80.56% of the company's stock.

Trending Headlines about Applied Materials

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

• Positive Sentiment: Record quarterly performance: Fiscal Q3 revenue rose 24.8% year over year to $9.12 billion, ahead of the $8.99 billion consensus estimate, while adjusted EPS of $3.50 exceeded expectations. AI infrastructure demand, advanced packaging and memory spending supported growth. Applied Materials Q3 Earnings Beat Estimates, Revenues Rise Y/Y
• Positive Sentiment: Above-consensus outlook: Management projected fiscal Q4 revenue of approximately $9.8 billion to $10.8 billion and EPS of $3.82 to $4.22, both above analyst expectations. The company also pointed to stronger systems growth and unusually long customer visibility into fiscal 2027 and beyond. Applied Materials Forecasts Quarterly Revenue Above Estimates
• Positive Sentiment: Analyst and institutional support: JPMorgan, RBC, TD Cowen, B. Riley, Needham and other firms maintained positive ratings or raised price targets. Soros Capital also reportedly added AMAT among several semiconductor positions, reinforcing the longer-term AI and chip-cycle investment case. Soros Capital Loads Up on Semiconductor Stocks
• Neutral Sentiment: Options imply a possible rebound: Derivatives-market data indicates traders expect the pullback could be temporary, although elevated volatility reflects uncertainty over the stock’s near-term direction. Applied Materials Options Data
• Negative Sentiment: Expectations were exceptionally high: Despite the earnings beat and upbeat guidance, investors wanted faster growth and clearer evidence that AMAT is outpacing rivals in semiconductor manufacturing equipment. Concerns about competition, margins and the pace of systems growth overshadowed the headline results. Applied Materials Slips as Investors Seek Faster Growth
• Negative Sentiment: Broader market pressure added to selling: Weaker July retail-sales data, profit-taking after record highs and a semiconductor-sector selloff weighed on AMAT and other AI-related stocks.

Insider Buying and Selling

In other news, insider Prabu G. Raja sold 50,000 shares of the firm's stock in a transaction dated Thursday, June 4th. The stock was sold at an average price of $505.28, for a total transaction of $25,264,000.00. Following the completion of the sale, the insider directly owned 356,642 shares of the company's stock, valued at $180,204,069.76. This trade represents a 12.30% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Gary E. Dickerson sold 71,727 shares of Applied Materials stock in a transaction dated Tuesday, June 16th. The shares were sold at an average price of $593.75, for a total value of $42,587,906.25. Following the sale, the chief executive officer owned 1,695,164 shares of the company's stock, valued at approximately $1,006,503,625. This represents a 4.06% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders sold 278,088 shares of company stock worth $169,654,805. Insiders own 0.30% of the company's stock.

Analyst Upgrades and Downgrades

AMAT has been the subject of a number of research reports. Stifel Nicolaus increased their price target on Applied Materials from $530.00 to $650.00 and gave the company a "buy" rating in a research note on Friday, July 10th. Wolfe Research boosted their price objective on Applied Materials from $500.00 to $550.00 and gave the stock an "outperform" rating in a research note on Friday, May 15th. Craig Hallum upped their price objective on Applied Materials from $530.00 to $585.00 and gave the company a "buy" rating in a report on Friday. William Blair started coverage on Applied Materials in a research note on Tuesday, August 11th. They set a "market perform" rating for the company. Finally, Erste Group Bank lowered Applied Materials from a "buy" rating to a "hold" rating in a report on Wednesday, August 5th. One analyst has rated the stock with a Strong Buy rating, twenty-seven have issued a Buy rating and six have assigned a Hold rating to the stock. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $640.17.

Applied Materials Price Performance

Applied Materials stock opened at $507.18 on Monday. The firm has a market cap of $402.68 billion, a PE ratio of 43.72, a P/E/G ratio of 1.25 and a beta of 1.61. 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's 50 day moving average price is $564.15 and its two-hundred day moving average price is $445.77. Applied Materials, Inc. has a twelve month low of $154.46 and a twelve month high of $739.67.

Applied Materials (NASDAQ:AMAT - Get Free Report) last issued its earnings results on Thursday, August 13th. The manufacturing equipment provider reported $3.50 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $3.40 by $0.10. Applied Materials had a net margin of 30.05% and a return on equity of 38.02%. The company had revenue of $9.12 billion during the quarter, compared to analyst estimates of $8.99 billion. During the same quarter last year, the business posted $2.48 EPS. The company's revenue for the quarter was up 24.8% on a year-over-year basis. Applied Materials has set its Q4 2026 guidance at 3.820-4.220 EPS. On average, research analysts predict that Applied Materials, Inc. will post 12.48 EPS for the current fiscal year.

Applied Materials Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Thursday, August 20th will be given a $0.53 dividend. This represents a $2.12 annualized dividend and a yield of 0.4%. The ex-dividend date of this dividend is Thursday, August 20th. Applied Materials's dividend payout ratio is presently 18.28%.

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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