Applied Materials, Inc. $AMAT Stock: Hennessy Advisors Inc. Cuts Holdings

Key Points

• Hennessy Advisors cut its Applied Materials position by 94.6% in the third quarter, selling 7,030 shares and retaining 404 shares worth approximately $207,000.
• Other major institutions increased their holdings, and institutional investors collectively own 80.56% of AMAT. Applied Materials also reported quarterly EPS of $3.50, exceeding estimates, while revenue rose 24.8% year over year to $9.12 billion.
• Analysts maintain a consensus “Moderate Buy” rating with an average price target of $632.70, while the company declared a quarterly dividend of $0.53 per share, representing a 0.6% annualized yield.

Hennessy Advisors Inc. decreased its position in shares of Applied Materials, Inc. (NASDAQ:AMAT - Free Report) by 94.6% during the 3rd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 404 shares of the manufacturing equipment provider's stock after selling 7,030 shares during the quarter. Hennessy Advisors Inc.'s holdings in Applied Materials were worth $207,000 as of its most recent SEC filing.

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

Applied Materials Price Performance

Shares of NASDAQ AMAT opened at $374.53 on Tuesday. The firm has a market cap of $297.23 billion, a PE ratio of 32.29, a PEG ratio of 1.16 and a beta of 1.60. The company has a current ratio of 2.42, a quick ratio of 1.79 and a debt-to-equity ratio of 0.20. Applied Materials, Inc. has a 1-year low of $203.40 and a 1-year high of $739.67. The company has a fifty day moving average price of $455.30 and a 200 day moving average price of $443.98.

Applied Materials (NASDAQ:AMAT - Get Free Report) last released its quarterly earnings results on Thursday, August 13th. The manufacturing equipment provider reported $3.50 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.40 by $0.10. The firm 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 company's revenue for the quarter was up 24.8% on a year-over-year basis. During the same quarter last year, the business posted $2.48 EPS. Applied Materials has set its Q4 2026 guidance at 3.820-4.220 EPS. Research analysts predict that Applied Materials, Inc. will post 12.79 earnings per share for the current fiscal year.

Applied Materials Announces Dividend

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

Wall Street Analysts Forecast Growth

A number of research analysts have issued reports on the company. B. Riley Financial reissued a "buy" rating and issued a $700.00 target price (down from $790.00) on shares of Applied Materials in a research note on Friday, August 14th. Zacks Research lowered Applied Materials from a "strong-buy" rating to a "hold" rating in a research report on Thursday, October 15th. Needham & Company LLC cut their price objective on Applied Materials from $740.00 to $580.00 and set a "buy" rating on the stock in a report on Friday, October 16th. Deutsche Bank Aktiengesellschaft reiterated a "buy" rating and issued a $605.00 price objective (down from $680.00) on shares of Applied Materials in a research report on Friday, August 14th. Finally, William Blair initiated coverage on Applied Materials in a research note on Tuesday, August 11th. They set a "market perform" rating for the company. Thirty investment analysts have rated the stock with a Buy rating and nine have given a Hold rating to the stock. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of $632.70.

Insider Activity at Applied Materials

In related news, CFO Brice Hill sold 7,500 shares of Applied Materials 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 sale, the chief financial officer owned 128,613 shares of the company's stock, valued at approximately $61,637,780.25. This trade represents a 5.51% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CAO Adam Sanders sold 725 shares of the business's stock in a transaction that occurred on Friday, October 2nd. The shares were 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 owned 3,181 shares in the company, valued at $1,732,245.36. The trade was a 18.56% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last quarter, insiders have sold 9,225 shares of company stock valued at $4,454,181. 0.30% of the stock is owned by insiders.

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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