Applied Materials, Inc. $AMAT Stock: Harbor Island Capital LLC Decreases Holdings

Key Points

• Harbor Island Capital cut its Applied Materials stake by 13.3% in the third quarter, selling 12,329 shares and retaining 80,169 shares valued at approximately $41 million. Applied Materials remains the fund’s third-largest holding.
• Institutional investors and hedge funds own 80.56% of AMAT’s shares, while insiders sold 9,225 shares worth about $4.45 million over the past 90 days. Analysts maintain a “Moderate Buy” consensus, with an average price target of $632.70.
• Applied Materials recently exceeded quarterly earnings and revenue estimates, reporting $3.50 in EPS and $9.12 billion in revenue, up 24.8% year over year. The company also declared a quarterly dividend of $0.53 per share, representing a 0.6% annualized yield.

Harbor Island Capital LLC reduced its position in Applied Materials, Inc. (NASDAQ:AMAT - Free Report) by 13.3% in the 3rd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 80,169 shares of the manufacturing equipment provider's stock after selling 12,329 shares during the quarter. Applied Materials makes up about 10.5% of Harbor Island Capital LLC's investment portfolio, making the stock its 3rd biggest holding. Harbor Island Capital LLC's holdings in Applied Materials were worth $40,997,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds have also recently bought and sold shares of the company. BlackRock Inc. grew its position in shares of Applied Materials by 1.6% in the 2nd quarter. BlackRock Inc. now owns 80,212,518 shares of the manufacturing equipment provider's stock worth $57,993,650,000 after acquiring an additional 1,237,685 shares in the last quarter. State Street Corp raised its position in shares of Applied Materials by 85.4% during the 2nd quarter. State Street Corp now owns 69,525,842 shares of the manufacturing equipment provider's stock valued at $50,267,184,000 after acquiring an additional 32,018,892 shares in the last quarter. Amundi raised its position in shares of Applied Materials by 19.0% during the 2nd quarter. Amundi now owns 7,808,207 shares of the manufacturing equipment provider's stock valued at $5,645,344,000 after acquiring an additional 1,246,876 shares in the last quarter. Van ECK Associates Corp raised its position in shares of Applied Materials by 16.2% during the 2nd quarter. Van ECK Associates Corp now owns 7,713,599 shares of the manufacturing equipment provider's stock valued at $5,576,932,000 after acquiring an additional 1,073,879 shares in the last quarter. Finally, Bank of America Corp DE bought a new position in Applied Materials during the second quarter worth $5,252,863,000. Institutional investors and hedge funds own 80.56% of the company's stock.

Insider Activity

In related news, Director Judy Bruner sold 1,000 shares of the stock in a transaction that occurred on Tuesday, September 8th. The stock was sold at an average price of $465.00, for a total value of $465,000.00. Following the completion of the transaction, the director directly owned 25,544 shares of the company's stock, valued at $11,877,960. This represents a 3.77% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, CFO Brice Hill sold 7,500 shares of the stock in a transaction that occurred on 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 transaction, the chief financial officer directly owned 128,613 shares of the company's stock, valued at $61,637,780.25. This trade represents a 5.51% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last 90 days, insiders have sold 9,225 shares of company stock valued at $4,454,181. Insiders own 0.30% of the company's stock.

Wall Street Analyst Weigh In

A number of equities analysts have commented on AMAT shares. Zacks Research downgraded shares of Applied Materials from a "strong-buy" rating to a "hold" rating in a report on Thursday, October 15th. The Goldman Sachs Group increased their target price on shares of Applied Materials from $645.00 to $670.00 and gave the stock a "buy" rating in a report on Friday, August 14th. KeyCorp increased their target price on shares of Applied Materials from $550.00 to $750.00 and gave the stock an "overweight" rating in a report on Monday, June 29th. Citigroup restated 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. Finally, Sanford C. Bernstein lifted their price target on shares of Applied Materials from $675.00 to $700.00 and gave the company an "outperform" rating in a report on Friday, August 14th. Thirty equities research analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, Applied Materials currently has an average rating of "Moderate Buy" and a consensus target price of $632.70.

Trending Headlines about Applied Materials

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

• Positive Sentiment: Strategic investment expands AI and materials exposure. Applied Ventures, Applied Materials’ venture-capital arm, invested in Albert Invent, an AI platform for chemical and materials research. The deal could strengthen Applied’s exposure to software-enabled materials discovery and support longer-term innovation. Albert Invent Welcomes Applied Ventures as Investor
• Positive Sentiment: Analyst estimate revision was modestly favorable. Erste Group raised its FY2027 EPS forecast to $18.67 from $18.59, although it maintained a “Hold” rating. The increase suggests some confidence in Applied Materials’ longer-term earnings outlook. Erste Group estimate update
• Positive Sentiment: AI-related semiconductor investment remains a growth catalyst. Advanced logic, DRAM and advanced-packaging spending is supporting the company’s Semiconductor Systems business, with potential benefits to revenue growth and margins. Can Semiconductor Systems Drive AMAT’s Next Growth Phase?
• Neutral Sentiment: ETF demand provided a technical-support signal. Reports indicated approximately $102.1 million of net ETF buying in Applied Materials, suggesting continued institutional interest, though ETF flows do not necessarily change the company’s fundamentals. Applied Materials Sees $102.1 Million in Net ETF Buying
• Neutral Sentiment: Fiscal 2026 results are scheduled for November 12. The upcoming earnings report will be an important catalyst for assessing demand, margins and management’s outlook. Applied Materials to Report Fourth-Quarter Results
• Negative Sentiment: Lam Research’s outlook pressured the entire equipment group. Lam’s comments that its outlook would be only “a bit higher,” alongside supply constraints, triggered concerns that growth may not accelerate as quickly as expected. Applied Materials and other chip-equipment stocks declined in sympathy. Applied Materials Sinks on Lam’s Outlook
• Negative Sentiment: Relative analysis favors Lam Research. Analysts cited stronger memory growth and customer-support momentum at Lam, giving it an edge over Applied Materials in the wafer-fabrication-equipment market and potentially limiting AMAT’s near-term appeal. AMAT vs. LRCX: Which Stock Has an Edge?

Applied Materials Trading Up 0.4%

Shares of NASDAQ AMAT opened at $377.24 on Friday. The company has a market cap of $299.38 billion, a price-to-earnings ratio of 32.52, a price-to-earnings-growth ratio of 1.05 and a beta of 1.60. Applied Materials, Inc. has a 12-month low of $203.40 and a 12-month high of $739.67. 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's 50 day simple moving average is $467.37 and its 200 day simple moving average is $486.93.

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

Applied Materials Announces Dividend

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

Applied Materials Profile

Applied Materials, Inc is a technology company that supplies equipment, services and software used to manufacture semiconductors and advanced displays. Its products help customers fabricate the integrated circuits and other components used in computers, mobile devices, data centers, automobiles and a range of connected technologies.

The company's offerings include systems for materials engineering, wafer fabrication, inspection and process control, along with equipment and services designed to improve manufacturing productivity and yield.

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