Applied Materials, Inc. $AMAT Stake Cut by Retirement Systems of Alabama

Key Points

• Retirement Systems of Alabama cut its Applied Materials stake by 19.6% in the third quarter, selling 91,134 shares; it still held 373,945 shares valued at about $191.2 million.
• Analysts remain broadly positive: 30 rate the stock Buy and nine Hold, giving it a “Moderate Buy” consensus and an average price target of $625.76.
• Applied Materials beat quarterly earnings and revenue expectations, with year-over-year revenue growth of 24.8%; it also announced a quarterly dividend of $0.53 per share.

Retirement Systems of Alabama decreased its holdings in shares of Applied Materials, Inc. (NASDAQ:AMAT - Free Report) by 19.6% during the third quarter, according to its most recent filing with the SEC. The firm owned 373,945 shares of the manufacturing equipment provider's stock after selling 91,134 shares during the period. Applied Materials accounts for about 0.5% of Retirement Systems of Alabama's portfolio, making the stock its 29th largest position. Retirement Systems of Alabama's holdings in Applied Materials were worth $191,228,000 as of its most recent SEC filing.

Other large investors have also modified their holdings of the company. Harborfront Financial Group LLC purchased a new stake in shares of Applied Materials in the 2nd quarter worth approximately $27,000. Curry Webb Wealth Management LLC bought a new position in shares of Applied Materials during the third quarter valued at approximately $30,000. Dakota Community Bank & Trust NA purchased a new position in Applied Materials during the third quarter valued at approximately $31,000. Orion Capital Management LLC purchased a new position in Applied Materials during the second quarter valued at approximately $33,000. Finally, Highland Investment Advisors LLC purchased a new position in Applied Materials during the second quarter valued at approximately $33,000. Institutional investors own 80.56% of the company's stock.

Wall Street Analysts Forecast Growth

A number of equities analysts recently commented on AMAT shares. JPMorgan Chase & Co. boosted their price objective on shares of Applied Materials from $515.00 to $660.00 and gave the stock an "overweight" rating in a research note on Friday, August 14th. Deutsche Bank Aktiengesellschaft reaffirmed a "buy" rating and set a $605.00 target price (down from $680.00) on shares of Applied Materials in a research report on Friday, August 14th. Seaport Research Partners reiterated a "buy" rating and issued a $575.00 price target (up from $500.00) on shares of Applied Materials in a report on Friday, August 14th. Craig Hallum boosted their price target on Applied Materials from $530.00 to $585.00 and gave the stock a "buy" rating in a research report on Friday, August 14th. Finally, Citigroup reissued a "buy" rating and issued a $710.00 price target (up from $550.00) on shares of Applied Materials in a research report on Monday, August 3rd. Thirty equities research analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, Applied Materials currently has an average rating of "Moderate Buy" and an average price target of $625.76.

Applied Materials Price Performance

Shares of AMAT opened at $370.55 on Tuesday. The company has a market cap of $294.07 billion, a price-to-earnings ratio of 31.94, a price-to-earnings-growth ratio of 0.72 and a beta of 1.67. Applied Materials, Inc. has a twelve month low of $203.40 and a twelve month high of $739.67. The company has a quick ratio of 1.79, a current ratio of 2.42 and a debt-to-equity ratio of 0.20. The company has a 50 day moving average of $443.02 and a two-hundred day moving average of $444.89.

Applied Materials (NASDAQ:AMAT - Get Free Report) last issued its quarterly earnings results on Thursday, August 13th. The manufacturing equipment provider reported $3.50 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $3.40 by $0.10. The business had revenue of $9.12 billion for the quarter, compared to the consensus estimate of $8.99 billion. Applied Materials had a return on equity of 38.02% and a net margin of 30.05%. The business's quarterly revenue was up 24.8% on a year-over-year basis. During the same period in the prior year, the firm posted $2.48 earnings per share. Applied Materials has set its Q4 2026 guidance at 3.820-4.220 EPS. As a group, analysts predict that Applied Materials, Inc. will post 12.79 earnings per share for the current fiscal year.

Applied Materials Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, December 10th. Investors of record on Thursday, November 19th will be paid a dividend of $0.53 per share. This represents a $2.12 annualized dividend and a yield of 0.6%. The ex-dividend date is Thursday, November 19th. Applied Materials's payout ratio is 18.28%.

More Applied Materials News

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

• Positive Sentiment: Semiconductor equipment stocks rallied broadly, with Applied Materials among the leaders, as investors rotated back into chip-related names after the sector’s recent sell-off. Applied Materials Jumps Ahead of Earnings
• Positive Sentiment: Investors are looking to continued AI-related chip-equipment demand, advanced packaging growth and rising memory investment to support AMAT’s outlook in its upcoming quarterly report. Analysts remain broadly optimistic, and B. Riley maintained a Buy rating despite lowering its price target. AMAT to Post Q4 Earnings
• Neutral Sentiment: The rally comes ahead of a closely watched earnings report, which could set the direction for the shares. The company’s outlook will be important in gauging whether demand can sustain the recent recovery. Applied Materials Earnings Preview
• Negative Sentiment: Risks include supply concerns ahead of earnings and valuation: one analysis argues the stock may be above fair value after its substantial longer-term advance. Any cautious guidance or signs of weaker demand could undermine the rebound. Applied Materials Stock Looks Above Fair Value

Insider Buying and Selling

In other Applied Materials news, CAO Adam Sanders sold 725 shares of the stock in a transaction dated Friday, October 2nd. The stock was sold at an average price of $544.56, for a total value of $394,806.00. Following the completion of the sale, the chief accounting officer directly owned 3,181 shares in the company, valued at approximately $1,732,245.36. This trade represents a 18.56% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Brice Hill sold 7,500 shares of the firm's stock in a transaction dated Tuesday, August 25th. The stock was sold at an average price of $479.25, for a total value of $3,594,375.00. Following the completion of the sale, the chief financial officer directly owned 128,613 shares of the company's stock, valued at approximately $61,637,780.25. This represents a 5.51% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 9,225 shares of company stock worth $4,454,181 in the last ninety days. 0.30% of the stock is owned by insiders.

Applied Materials Company Profile

Applied Materials, Inc develops and supplies equipment, software and services used to manufacture semiconductors and advanced displays. Its technologies help customers build and process materials at the microscopic scale required for chips and other electronic products.

The company's offerings include systems for depositing, removing and modifying materials, as well as inspection, measurement and process-control tools. It also provides equipment and services for advanced semiconductor packaging and supports customers with maintenance, upgrades and manufacturing software.

Founded in 1967 and headquartered in Santa Clara, California, Applied Materials serves semiconductor and display manufacturers around the world.

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