Applied Materials, Inc. $AMAT Shares Sold by Grove Bank & Trust

Key Points

• Grove Bank & Trust reduced its Applied Materials stake by 23.1% in the second quarter, selling 1,999 shares and retaining 6,665 shares valued at approximately $4.8 million.
• Applied Materials recently exceeded quarterly expectations, reporting $2.86 in EPS and $7.91 billion in revenue, while analysts maintain a “Moderate Buy” consensus rating with an average price target of $603.23.
• Despite positive AI-driven semiconductor demand and strong earnings performance, the stock faces risks from its elevated valuation, potential Chinese competition and substantial insider selling during the last quarter.

Grove Bank & Trust cut its stake in shares of Applied Materials, Inc. (NASDAQ:AMAT - Free Report) by 23.1% during the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 6,665 shares of the manufacturing equipment provider's stock after selling 1,999 shares during the quarter. Grove Bank & Trust's holdings in Applied Materials were worth $4,819,000 as of its most recent SEC filing.

Several other hedge funds have also recently made changes to their positions in the company. Financial Freedom LLC purchased a new position in Applied Materials in the 1st quarter worth $28,000. Cornerstone Financial Management LLC purchased a new stake in Applied Materials during the 4th quarter valued at about $25,000. Whipplewood Advisors LLC grew its stake in Applied Materials by 218.8% during the 1st quarter. Whipplewood Advisors LLC now owns 102 shares of the manufacturing equipment provider's stock valued at $35,000 after purchasing an additional 70 shares during the last quarter. Wilkerson Advisory Group LLC acquired a new position in shares of Applied Materials in the fourth quarter valued at about $26,000. Finally, MBM Wealth Consultants LLC acquired a new position in shares of Applied Materials in the first quarter valued at about $38,000. 80.56% of the stock is owned by institutional investors and hedge funds.

Applied Materials News Summary

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

• Positive Sentiment: Semiconductor ETFs surged as much as 19% in a broad AI-driven rally, improving sentiment toward chip-equipment suppliers such as Applied Materials. Renewed expectations for AI infrastructure spending may support demand for the company’s wafer-fabrication equipment. Semiconductor ETFs Surge up to 19% in Huge Rally as the AI Trade Ramps Back Up
• Positive Sentiment: Analysts see a favorable setup for Applied Materials to beat its next quarterly earnings estimates, citing the company’s strong history of earnings surprises and currently positive forecast indicators. The company’s latest quarter also exceeded expectations, with $2.86 in EPS and $7.91 billion in revenue. Will Applied Materials Beat Estimates Again in Its Next Earnings Report?
• Neutral Sentiment: Applied Materials recently outperformed the broader market, reflecting stronger investor interest in the semiconductor-equipment group. However, the article primarily describes recent trading performance rather than identifying a new fundamental catalyst. Applied Materials Outperforms Broader Market: What You Need to Know
• Negative Sentiment: Some analysts remain cautious ahead of earnings despite Applied Materials’ strong fundamentals, with at least one downgrade pointing to elevated expectations and potential downside if results or guidance disappoint. The stock’s high earnings multiple increases its sensitivity to any slowdown in AI or semiconductor spending. Applied Materials: Strong Fundamentals, But I'm Downgrading Ahead of Earnings
• Negative Sentiment: Semiconductor stocks recently faced pressure over fears that Chinese competitors could intensify competition, potentially affecting pricing, market share and long-term growth prospects for U.S. equipment makers. Semiconductor Stocks Sink Over Fears of Increased Competition From China

Analyst Ratings Changes

AMAT has been the subject of a number of research reports. The Goldman Sachs Group reaffirmed a "buy" rating and set a $645.00 target price on shares of Applied Materials in a report on Monday. Barclays increased their price target on shares of Applied Materials from $500.00 to $590.00 and gave the stock an "overweight" rating in a report on Thursday, June 11th. UBS Group raised their price target on shares of Applied Materials from $570.00 to $705.00 and gave the stock a "buy" rating in a research report on Wednesday, July 15th. Royal Bank Of Canada lifted their price objective on shares of Applied Materials from $500.00 to $520.00 and gave the company an "outperform" rating in a research note on Friday, May 15th. Finally, B. Riley Financial upped their price objective on shares of Applied Materials from $550.00 to $790.00 and gave the company a "buy" rating in a report on Friday, June 26th. One research analyst has rated the stock with a Strong Buy rating, twenty-seven have given a Buy rating and six have issued a Hold rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $603.23.

Insiders Place Their Bets

In related news, insider Prabu G. Raja sold 10,000 shares of the business's 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 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 document filed with the SEC, which is available at the SEC website. Also, SVP Timothy M. Deane sold 8,621 shares of the business's stock in a transaction on Monday, June 15th. The shares were sold at an average price of $590.76, for a total transaction of $5,092,941.96. Following the completion of the transaction, the senior vice president owned 134,631 shares of the company's stock, valued at approximately $79,534,609.56. This represents a 6.02% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 278,088 shares of company stock worth $169,654,805. Corporate insiders own 0.30% of the company's stock.

Applied Materials Stock Performance

Shares of AMAT stock opened at $546.62 on Wednesday. Applied Materials, Inc. has a 52-week low of $154.46 and a 52-week high of $739.67. The company has a quick ratio of 1.80, a current ratio of 2.51 and a debt-to-equity ratio of 0.22. The stock has a market cap of $433.99 billion, a PE ratio of 51.33, a price-to-earnings-growth ratio of 1.32 and a beta of 1.61. The business has a 50-day simple moving average of $554.42 and a 200-day simple moving average of $434.07.

Applied Materials (NASDAQ:AMAT - Get Free Report) last posted its earnings results on Thursday, May 14th. The manufacturing equipment provider reported $2.86 EPS 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 analyst estimates of $7.68 billion. Applied Materials had a return on equity of 36.97% and a net margin of 29.31%.Applied Materials's revenue for the quarter was up 11.4% compared to the same quarter last year. During the same period last year, the company earned $2.39 earnings per share. Applied Materials has set its Q3 2026 guidance at 3.160-3.560 EPS. On average, equities analysts expect that Applied Materials, Inc. will post 12.14 EPS for the current year.

Applied Materials Dividend Announcement

The business also recently disclosed 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 is Thursday, August 20th. Applied Materials's dividend payout ratio is currently 19.91%.

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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