Applied Materials, Inc. $AMAT Shares Bought by Saudi Central Bank

Key Points

• Saudi Central Bank nearly doubled its Applied Materials stake in the second quarter, increasing holdings by 89.8% to 55,553 shares valued at approximately $40.2 million. Institutional investors collectively own 80.56% of the company.
• Analyst sentiment remains favorable, with one Strong Buy, 27 Buy and five Hold ratings. The stock has an average “Moderate Buy” rating and an average price target of $658.45, despite differing individual targets.
• Applied Materials exceeded quarterly expectations, reporting $3.50 in EPS and $9.12 billion in revenue, with revenue up 24.8% year over year. However, insiders sold $146.1 million of shares over the past three months, while AI-related semiconductor demand remains the primary growth catalyst.

Saudi Central Bank increased its holdings in shares of Applied Materials, Inc. (NASDAQ:AMAT - Free Report) by 89.8% during the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 55,553 shares of the manufacturing equipment provider's stock after buying an additional 26,285 shares during the quarter. Saudi Central Bank's holdings in Applied Materials were worth $40,165,000 as of its most recent filing with the Securities and Exchange Commission.

Several other hedge funds and other institutional investors also recently added to or reduced their stakes in the business. Harborfront Financial Group LLC acquired a new stake in shares of Applied Materials in the second quarter worth approximately $27,000. Orion Capital Management LLC acquired a new position in Applied Materials during the second quarter worth approximately $33,000. Highland Investment Advisors LLC purchased a new position in Applied Materials during the second quarter worth approximately $33,000. BOK Financial Private Wealth Inc. acquired a new position in shares of Applied Materials in the 2nd quarter valued at $41,000. Finally, Financial Freedom LLC purchased a new stake in shares of Applied Materials during the 1st quarter valued at $28,000. Hedge funds and other institutional investors own 80.56% of the company's stock.

Insider Buying and Selling

In other Applied Materials news, SVP Omkaram Nalamasu sold 24,263 shares of the business's stock in a transaction dated 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 completion of the transaction, the senior vice president directly owned 146,916 shares of the company's stock, valued at $87,184,361.88. The trade was a 14.17% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CEO Gary Dickerson sold 20,000 shares of the company's stock in a transaction dated Tuesday, June 30th. The stock was sold at an average price of $735.22, for a total transaction of $14,704,400.00. Following the completion of the transaction, the chief executive officer owned 1,599,843 shares of the company's stock, valued at approximately $1,176,236,570.46. This trade represents a 1.23% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 231,692 shares of company stock valued at $146,114,059 in the last three months. 0.30% of the stock is owned by corporate insiders.

Analyst Upgrades and Downgrades

A number of equities research analysts have issued reports on AMAT shares. Mizuho lowered their price target on Applied Materials from $650.00 to $590.00 and set an "outperform" rating for the company in a research report on Tuesday, August 25th. JPMorgan Chase & Co. lifted their price objective on Applied Materials from $515.00 to $660.00 and gave the company an "overweight" rating in a research note on Friday, August 14th. TD Cowen reiterated a "buy" rating and set a $700.00 target price on shares of Applied Materials in a report on Friday, August 14th. Morgan Stanley dropped their target price on shares of Applied Materials from $646.00 to $642.00 and set an "equal weight" rating for the company in a research report on Friday, August 14th. Finally, Susquehanna raised their price target on shares of Applied Materials from $575.00 to $900.00 and gave the company a "positive" rating in a report on Tuesday, June 30th. One research analyst has rated the stock with a Strong Buy rating, twenty-seven have given a Buy rating and five have assigned a Hold rating to the company. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average target price of $658.45.

More Applied Materials News

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

• Positive Sentiment: AI-driven equipment demand remains the main catalyst. Growth in advanced packaging, DRAM and high-bandwidth memory (HBM), along with accelerating global fab investment, is strengthening the outlook for Applied Materials’ equipment orders. AMAT Rides on AI-Led WFE Demand: Can it Sustain the Momentum?
• Positive Sentiment: Raised forecasts have driven a major valuation re-rating. Although trailing-twelve-month revenue growth was only 7.8%, management reportedly increased its forecast twice between February and August as semiconductor demand expectations improved. That forward-growth story helps explain the stock’s roughly 180% one-year return. Why Did Applied Materials Stock Nearly Triple On Single-Digit Trailing Revenue Growth?
• Positive Sentiment: Analyst expectations are improving. UBS projected strong potential appreciation for AMAT, while another analyst raised the fiscal 2027 EPS estimate, signaling continued confidence in earnings growth and semiconductor capital spending. UBS Group Forecasts Strong Price Appreciation for Applied Materials FY2027 EPS Estimate for Applied Materials Boosted by Analyst
• Neutral Sentiment: Valuation remains a key debate. Despite a recent pullback, AMAT has gained about 237% over five years, leaving investors questioning how much AI and semiconductor-cycle optimism is already reflected in the shares. Can Applied Materials Still Look Cheap After a 237% Run?
• Negative Sentiment: Industry-cycle risks have not disappeared. Optimism about a permanently stronger semiconductor cycle is tempered by potential memory-capacity imbalances, which could pressure chipmakers’ capital spending if supply expands faster than demand. SEMIs CEO Has Watched Four Decades of Chip Cycles

Applied Materials Price Performance

AMAT stock opened at $454.71 on Friday. The stock's 50 day moving average is $533.24 and its two-hundred day moving average is $460.59. Applied Materials, Inc. has a 52-week low of $158.82 and a 52-week high of $739.67. The company has a market capitalization of $360.86 billion, a PE ratio of 39.20, a P/E/G ratio of 1.27 and a beta of 1.60. The company has a quick ratio of 1.79, a current ratio of 2.42 and a debt-to-equity ratio of 0.20.

Applied Materials (NASDAQ:AMAT - Get Free Report) last issued its quarterly earnings results on Thursday, August 13th. The manufacturing equipment provider reported $3.50 EPS for the quarter, topping the consensus estimate of $3.40 by $0.10. Applied Materials had a net margin of 30.05% and a return on equity of 38.02%. The business had revenue of $9.12 billion for the quarter, compared to analysts' expectations of $8.99 billion. During the same quarter last year, the company posted $2.48 earnings per share. The company's quarterly 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. Analysts predict that Applied Materials, Inc. will post 12.76 earnings per share for the current fiscal year.

Applied Materials Announces Dividend

The business 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. The ex-dividend date of this dividend is Thursday, August 20th. This represents a $2.12 annualized dividend and a yield of 0.5%. Applied Materials's dividend payout ratio (DPR) is currently 18.28%.

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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