Applied Materials, Inc. $AMAT Stock: Migdal Insurance & Financial Holdings Ltd. Reduces Stake

Key Points

• Migdal Insurance cut its Applied Materials stake by 62.9% in the third quarter, selling 221,115 shares and retaining 130,198 shares valued at about $66.6 million.
• Applied Materials beat quarterly estimates, reporting EPS of $4.16 versus $4.06 expected and revenue of $10.41 billion versus $10.30 billion. Management forecast Q1 revenue of $10.6 billion–$11.6 billion and expects Semiconductor Systems revenue to grow more than 40% in calendar 2026, driven partly by AI demand.
• Despite the results and growth outlook, analysts have cut several price targets, and the shares fell 2.7% to $370.50 on Friday. The consensus rating remains Moderate Buy, with an average price target of $589.23.

Migdal Insurance & Financial Holdings Ltd. lowered its stake in Applied Materials, Inc. (NASDAQ:AMAT - Free Report) by 62.9% in the third quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 130,198 shares of the manufacturing equipment provider's stock after selling 221,115 shares during the quarter. Migdal Insurance & Financial Holdings Ltd.'s holdings in Applied Materials were worth $66,581,000 as of its most recent SEC filing.

A number of other hedge funds also recently made changes to their positions in AMAT. Harborfront Financial Group LLC acquired a new position in Applied Materials during the 2nd quarter worth approximately $27,000. Curry Webb Wealth Management LLC bought a new position in Applied Materials in the 3rd quarter valued at approximately $30,000. Dakota Community Bank & Trust NA bought a new position in Applied Materials in the 3rd quarter valued at approximately $31,000. Orion Capital Management LLC acquired a new stake in Applied Materials in the second quarter valued at approximately $33,000. Finally, Highland Investment Advisors LLC acquired a new stake in Applied Materials in the second quarter valued at approximately $33,000. 80.56% of the stock is currently owned by institutional investors and hedge funds.

Analyst Ratings Changes

A number of analysts have weighed in on the stock. Stifel Nicolaus decreased their target price on shares of Applied Materials from $650.00 to $600.00 and set a "buy" rating on the stock in a research note on Friday. Zacks Research cut Applied Materials from a "strong-buy" rating to a "hold" rating in a research note on Thursday, October 15th. Wall Street Zen raised Applied Materials from a "hold" rating to a "buy" rating in a report on Saturday, September 26th. JPMorgan Chase & Co. cut their price objective on Applied Materials from $660.00 to $500.00 and set an "overweight" rating on the stock in a report on Friday. Finally, Erste Group Bank lowered Applied Materials from a "buy" rating to a "hold" rating in a research report on Wednesday, August 5th. Twenty-nine research analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the company. According to MarketBeat, Applied Materials presently has an average rating of "Moderate Buy" and an average price target of $589.23.

Key Headlines Impacting Applied Materials

These are some of the AMAT headlines that stood out recently:

• Positive Sentiment: Management’s outlook points to continued momentum: it forecast Q1 revenue of $10.6 billion–$11.6 billion and expects Semiconductor Systems revenue to grow more than 40% in calendar 2026. AI-related chip demand and capacity investment are key drivers of the forecast. Applied Materials sees semiconductor systems growth above 40%
• Neutral Sentiment: Management said demand is running ahead of supply, but component shortages and customers’ limited clean-room capacity may constrain how quickly equipment deliveries can scale. China is expected to account for less than a quarter of business in 2027, reducing reliance on that market even as export restrictions remain a risk. Applied Materials Says Chip Demand Remains Much Higher Than Supply
• Negative Sentiment: The strong quarter has not overcome weak sector sentiment: multiple analysts lowered price targets, citing valuation or semiconductor-equipment multiple compression, although most maintained Buy or Overweight ratings. A broader chip-stock sell-off and lingering concerns around AI-related trades have also weighed on the reaction. Analysts cut targets despite strong results

Applied Materials Trading Down 2.7%

AMAT traded down $10.45 during trading on Friday, reaching $370.50. 11,933,246 shares of the company's stock were exchanged, compared to its average volume of 8,342,034. Applied Materials, Inc. has a one year low of $203.40 and a one year 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 has a market capitalization of $294.03 billion, a PE ratio of 29.36, a price-to-earnings-growth ratio of 0.74 and a beta of 1.67. The firm has a fifty day moving average price of $437.91 and a two-hundred day moving average price of $446.02.

Applied Materials (NASDAQ:AMAT - Get Free Report) last announced its quarterly earnings results on Thursday, November 12th. The manufacturing equipment provider reported $4.16 earnings per share (EPS) for the quarter, beating the consensus estimate of $4.06 by $0.10. The firm had revenue of $10.41 billion during the quarter, compared to analysts' expectations of $10.30 billion. Applied Materials had a net margin of 29.29% and a return on equity of 43.37%. During the same period in the prior year, the company posted $2.17 EPS. Applied Materials has set its Q1 2027 guidance at 4.150-4.550 EPS. As a group, equities research analysts forecast that Applied Materials, Inc. will post 18.28 earnings per share for the current fiscal year.

Applied Materials Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Thursday, December 10th. Shareholders 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 annualized dividend and a yield of 0.6%. Applied Materials's dividend payout ratio (DPR) is presently 18.28%.

Insiders Place Their Bets

In other news, CFO Brice Hill sold 7,500 shares of Applied Materials stock in a transaction on Tuesday, August 25th. The shares were 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 owned 128,613 shares in the company, valued at $61,637,780.25. The trade was a 5.51% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, Director Judy Bruner sold 1,000 shares of the stock in a transaction dated Tuesday, September 8th. The stock was sold at an average price of $465.00, for a total transaction of $465,000.00. Following the transaction, the director directly owned 25,544 shares in the company, valued at $11,877,960. This trade represents a 3.77% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 9,225 shares of company stock worth $4,454,181. 0.30% of the stock is owned by corporate insiders.

About Applied Materials

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.

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