Applied Materials, Inc. $AMAT Shares Sold by Summit Street Capital Management LLC

Key Points

• Summit Street Capital Management cut its Applied Materials stake by 50% in the second quarter, selling 29,615 shares and retaining 29,589 shares valued at approximately $21.4 million. Institutional investors still own 80.56% of the company.
• Applied Materials reported quarterly revenue of $9.12 billion and earnings of $3.50 per share, exceeding analyst expectations, while revenue increased 24.8% year over year. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $657.76.
• Company insiders sold 284,192 shares worth roughly $172.6 million over the past 90 days, while Applied Materials declared a quarterly dividend of $0.53 per share. The stock’s outlook is supported by AI-related semiconductor demand, though China exposure and export controls remain key risks.

Summit Street Capital Management LLC trimmed its stake in Applied Materials, Inc. (NASDAQ:AMAT - Free Report) by 50.0% in the second quarter, according to the company in its most recent disclosure with the SEC. The firm owned 29,589 shares of the manufacturing equipment provider's stock after selling 29,615 shares during the quarter. Applied Materials comprises 3.0% of Summit Street Capital Management LLC's portfolio, making the stock its 19th largest position. Summit Street Capital Management LLC's holdings in Applied Materials were worth $21,393,000 as of its most recent filing with the SEC.

Other institutional investors and hedge funds have also recently bought and sold shares of the company. Cornerstone Financial Management LLC purchased a new stake in shares of Applied Materials during the 4th quarter valued at $25,000. Wilkerson Advisory Group LLC purchased a new position in shares of Applied Materials in the 4th quarter worth $26,000. Harborfront Financial Group LLC purchased a new position in shares of Applied Materials in the 2nd quarter worth $27,000. Financial Freedom LLC acquired a new position in Applied Materials in the first quarter valued at $28,000. Finally, Joseph Group Capital Management acquired a new position in Applied Materials in the fourth quarter valued at $31,000. Institutional investors and hedge funds own 80.56% of the company's stock.

Insider Transactions at Applied Materials

In other news, Director Thomas J. Iannotti sold 9,250 shares of the business's stock in a transaction on Tuesday, June 16th. The shares were sold at an average price of $599.77, for a total transaction of $5,547,872.50. Following the transaction, the director directly owned 40,559 shares of the company's stock, valued at approximately $24,326,071.43. The trade was a 18.57% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, SVP Timothy M. Deane sold 8,621 shares of the business's stock in a transaction on Monday, June 15th. The stock was sold at an average price of $590.76, for a total transaction of $5,092,941.96. Following the transaction, the senior vice president directly owned 134,631 shares in the company, valued at approximately $79,534,609.56. The trade was a 6.02% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 284,192 shares of company stock worth $172,625,209 over the last 90 days. 0.30% of the stock is owned by corporate insiders.

Analyst Ratings Changes

Several equities research analysts have commented on the company. Craig Hallum upped their price target on Applied Materials from $530.00 to $585.00 and gave the stock a "buy" rating in a research note on Friday, August 14th. 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. Morgan Stanley decreased their target price on Applied Materials from $646.00 to $642.00 and set an "equal weight" rating for the company in a report on Friday, August 14th. Sanford C. Bernstein boosted their target price on Applied Materials from $675.00 to $700.00 and gave the stock an "outperform" rating in a report on Friday, August 14th. Finally, Seaport Research Partners reissued a "buy" rating and set a $575.00 target price on shares of Applied Materials in a research report on Friday, August 14th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-seven have given a Buy rating and five have issued a Hold rating to the company's stock. According to MarketBeat.com, Applied Materials presently has an average rating of "Moderate Buy" and a consensus target price of $657.76.

Applied Materials Stock Up 0.5%

Shares of NASDAQ AMAT opened at $482.36 on Friday. Applied Materials, Inc. has a 12-month low of $154.46 and a 12-month high of $739.67. The company has a market cap of $382.80 billion, a P/E ratio of 41.58, a P/E/G ratio of 1.03 and a beta of 1.61. The company has a current ratio of 2.42, a quick ratio of 1.79 and a debt-to-equity ratio of 0.20. The stock has a fifty day moving average price of $553.91 and a 200 day moving average price of $456.73.

Applied Materials (NASDAQ:AMAT - Get Free Report) last issued its quarterly earnings data on Thursday, August 13th. The manufacturing equipment provider reported $3.50 EPS for the quarter, topping analysts' consensus estimates of $3.40 by $0.10. Applied Materials had a return on equity of 38.02% and a net margin of 30.05%.The company had revenue of $9.12 billion for the quarter, compared to analysts' expectations of $8.99 billion. During the same quarter in the previous year, the firm posted $2.48 earnings per share. The firm's quarterly revenue was up 24.8% on a year-over-year basis. Applied Materials has set its Q4 2026 guidance at 3.820-4.220 EPS. Research analysts anticipate that Applied Materials, Inc. will post 12.73 EPS for the current fiscal year.

Applied Materials Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Investors 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 annualized dividend and a yield of 0.4%. Applied Materials's payout ratio is 18.28%.

Key Stories Impacting Applied Materials

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

• Positive Sentiment: Qualcomm executive joins the board: Applied Materials appointed Qualcomm CFO and COO Akash Palkhiwala as a director and Audit Committee member. His semiconductor-industry, finance and operating experience could strengthen the board as AMAT targets growth in advanced logic, memory and AI infrastructure. Applied Materials Appoints Akash Palkhiwala to Board of Directors
• Positive Sentiment: AI buildout supports earnings momentum: Recent coverage highlights AMAT’s record quarter-over-quarter revenue increase, with quarterly revenue of $9.12 billion, up 25% year over year, and non-GAAP earnings per share of $3.50, up 41%. Demand is being driven by advanced DRAM, high-bandwidth memory, leading-edge logic and advanced packaging. The AI Buildout Is Turning Applied Materials Into A Profit Machine
• Positive Sentiment: Services business remains healthy: AMAT’s Applied Global Services segment reported record revenue and expanding margins, supported by subscription services, parts demand and increased semiconductor-fab utilization. This recurring revenue stream may help cushion equipment-cycle volatility. AMAT's AGS Business Gains Momentum
• Neutral Sentiment: Analyst upside remains substantial: The average Wall Street price target implies roughly 35% potential upside, although targets are estimates and AMAT’s elevated valuation makes further gains dependent on continued earnings growth. Does Applied Materials Have the Potential to Rally?
• Negative Sentiment: China exposure is a key overhang: New Chinese immersion DUV lithography capabilities and tighter export controls raise concerns about domestic competition and reduced access to China, a significant AMAT market. Applied Materials' China Problem Is Getting Worse
• Negative Sentiment: CFO stock sale adds a minor sentiment concern: CFO Brice Hill sold 7,500 shares worth approximately $3.6 million, reducing his holdings by 5.51%. The transaction does not change AMAT’s fundamentals but may weigh modestly on investor sentiment. SEC Insider Transaction Filing

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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