Applied Materials, Inc. $AMAT Shares Sold by Morningstar Investment Management LLC

Key Points

• Morningstar Investment Management LLC cut its Applied Materials stake by 30.1% in the fourth quarter, selling 14,999 shares and ending with 34,784 shares worth about $8.94 million.
• Analysts remain broadly bullish on AMAT, with several firms raising price targets to as high as $575 and MarketBeat showing a consensus rating of Moderate Buy.
• Applied Materials reported stronger-than-expected quarterly results, with EPS of $2.86 and revenue of $7.91 billion, while also increasing its quarterly dividend to $0.53 per share.

Morningstar Investment Management LLC decreased its holdings in shares of Applied Materials, Inc. (NASDAQ:AMAT - Free Report) by 30.1% during the 4th quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 34,784 shares of the manufacturing equipment provider's stock after selling 14,999 shares during the quarter. Morningstar Investment Management LLC's holdings in Applied Materials were worth $8,939,000 at the end of the most recent quarter.

Several other large investors also recently made changes to their positions in the company. Godsey & Gibb Inc. increased its stake in shares of Applied Materials by 2.6% in the fourth quarter. Godsey & Gibb Inc. now owns 1,298 shares of the manufacturing equipment provider's stock valued at $334,000 after purchasing an additional 33 shares during the period. Family Capital Management Inc. increased its stake in shares of Applied Materials by 0.8% in the fourth quarter. Family Capital Management Inc. now owns 4,227 shares of the manufacturing equipment provider's stock valued at $1,086,000 after purchasing an additional 33 shares during the period. Denali Advisors LLC increased its stake in shares of Applied Materials by 0.7% in the fourth quarter. Denali Advisors LLC now owns 4,582 shares of the manufacturing equipment provider's stock valued at $1,178,000 after purchasing an additional 34 shares during the period. Traveka Wealth LLC increased its stake in shares of Applied Materials by 2.6% in the fourth quarter. Traveka Wealth LLC now owns 1,404 shares of the manufacturing equipment provider's stock valued at $361,000 after purchasing an additional 36 shares during the period. Finally, Highline Wealth Partners LLC increased its stake in shares of Applied Materials by 48.7% in the fourth quarter. Highline Wealth Partners LLC now owns 116 shares of the manufacturing equipment provider's stock valued at $30,000 after purchasing an additional 38 shares during the period. Institutional investors and hedge funds own 80.56% of the company's stock.

Analysts Set New Price Targets

Several brokerages have commented on AMAT. TD Cowen raised their price target on shares of Applied Materials from $450.00 to $525.00 and gave the company a "buy" rating in a research note on Friday, May 15th. Wolfe Research raised their price target on shares of Applied Materials from $500.00 to $550.00 and gave the company an "outperform" rating in a research note on Friday, May 15th. Deutsche Bank Aktiengesellschaft raised their price target on shares of Applied Materials from $450.00 to $550.00 and gave the company a "buy" rating in a research note on Friday, May 15th. Cantor Fitzgerald raised their price target on shares of Applied Materials from $550.00 to $575.00 and gave the company an "overweight" rating in a research note on Friday, May 15th. Finally, DZ Bank upgraded shares of Applied Materials to a "hold" rating in a research note on Monday, February 16th. Twenty-seven equities research analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the company. According to MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $465.14.

Insider Activity at Applied Materials

In other news, CAO Adam Sanders sold 534 shares of the stock in a transaction that occurred on Tuesday, February 24th. The shares were sold at an average price of $379.16, for a total value of $202,471.44. Following the completion of the transaction, the chief accounting officer directly owned 4,625 shares in the company, valued at $1,753,615. This trade represents a 10.35% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Judy Bruner sold 2,500 shares of the firm's stock in a transaction that occurred on Wednesday, February 25th. The stock was sold at an average price of $391.71, for a total transaction of $979,275.00. Following the sale, the director owned 26,089 shares of the company's stock, valued at $10,219,322.19. The trade was a 8.74% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Company insiders own 0.30% of the company's stock.

Applied Materials Stock Performance

Applied Materials stock opened at $432.16 on Monday. The firm has a 50 day simple moving average of $387.09 and a 200-day simple moving average of $326.68. The company has a debt-to-equity ratio of 0.22, a current ratio of 2.51 and a quick ratio of 1.80. The stock has a market capitalization of $342.97 billion, a PE ratio of 40.58, a price-to-earnings-growth ratio of 1.21 and a beta of 1.66. Applied Materials, Inc. has a 12-month low of $153.47 and a 12-month high of $448.45.

Applied Materials (NASDAQ:AMAT - Get Free Report) last posted its quarterly earnings data on Thursday, May 14th. The manufacturing equipment provider reported $2.86 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.68 by $0.18. The business had revenue of $7.91 billion during the quarter, compared to analysts' expectations of $7.68 billion. Applied Materials had a net margin of 29.31% and a return on equity of 36.97%. The business's revenue was up 11.4% on a year-over-year basis. During the same period last year, the firm posted $2.39 earnings per share. Applied Materials has set its Q3 2026 guidance at 3.160-3.560 EPS. As a group, equities research analysts expect that Applied Materials, Inc. will post 12.02 EPS for the current fiscal year.

Applied Materials Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, June 11th. Stockholders of record on Thursday, May 21st will be issued a $0.53 dividend. This represents a $2.12 annualized dividend and a dividend yield of 0.5%. This is a boost from Applied Materials's previous quarterly dividend of $0.46. The ex-dividend date is Thursday, May 21st. Applied Materials's payout ratio is 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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