Applied Materials, Inc. $AMAT Stock Position Lowered by BDF Gestion

Key Points

• BDF Gestion reduced its Applied Materials position by 10.1% in the second quarter, selling 2,148 shares and retaining 19,099 shares valued at $13.8 million. Institutional investors and hedge funds collectively own 80.56% of the company.
• Wall Street remains broadly bullish, with 27 Buy, one Strong Buy and six Hold ratings, producing a “Moderate Buy” consensus and an average price target of $603.23. The stock opened at $546.62 and trades at a relatively high P/E ratio of 51.33.
• Applied Materials exceeded quarterly expectations with $2.86 in EPS and $7.91 billion in revenue, while revenue rose 11.4% year over year. The company also declared a quarterly dividend of $0.53, equivalent to a 0.4% annual yield, although insiders sold $169.7 million of shares over the past three months.

BDF Gestion trimmed its position in shares of Applied Materials, Inc. (NASDAQ:AMAT - Free Report) by 10.1% during the 2nd quarter, according to the company in its most recent filing with the SEC. The institutional investor owned 19,099 shares of the manufacturing equipment provider's stock after selling 2,148 shares during the period. Applied Materials accounts for 1.7% of BDF Gestion's investment portfolio, making the stock its 11th biggest holding. BDF Gestion's holdings in Applied Materials were worth $13,809,000 at the end of the most recent reporting period.

Other large investors also recently added to or reduced their stakes in the company. Vanguard Group Inc. boosted its stake in shares of Applied Materials by 0.4% during the 4th quarter. Vanguard Group Inc. now owns 76,779,340 shares of the manufacturing equipment provider's stock worth $19,731,523,000 after acquiring an additional 330,197 shares in the last quarter. Capital Research Global Investors raised its stake in shares of Applied Materials by 119.8% in the 4th quarter. Capital Research Global Investors now owns 32,707,049 shares of the manufacturing equipment provider's stock valued at $8,405,458,000 after acquiring an additional 17,829,377 shares in the last quarter. Morgan Stanley lifted its holdings in Applied Materials by 3.4% in the 4th quarter. Morgan Stanley now owns 11,470,835 shares of the manufacturing equipment provider's stock worth $2,947,891,000 after purchasing an additional 373,012 shares during the last quarter. Norges Bank bought a new stake in shares of Applied Materials during the 4th quarter worth $2,858,543,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its holdings in shares of Applied Materials by 17.1% during the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 10,688,232 shares of the manufacturing equipment provider's stock worth $2,746,769,000 after buying an additional 1,558,749 shares during the period. 80.56% of the stock is owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

Several research analysts recently commented on the stock. Wells Fargo & Company lifted their target price on shares of Applied Materials from $715.00 to $740.00 and gave the stock an "overweight" rating in a report on Friday, June 26th. Sanford C. Bernstein restated an "outperform" rating and set a $525.00 target price on shares of Applied Materials in a research note on Friday, May 15th. TD Cowen raised their target price on Applied Materials from $525.00 to $700.00 and gave the company a "buy" rating in a report on Thursday, July 9th. Morgan Stanley boosted their target price on shares of Applied Materials from $502.00 to $647.00 and gave the stock an "equal weight" rating in a research report on Monday, July 6th. Finally, Citigroup reiterated a "buy" rating on shares of Applied Materials in a research note on Monday. One equities research analyst has rated the stock with a Strong Buy rating, twenty-seven have given a Buy rating and six have assigned a Hold rating to the company. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus price target of $603.23.

Applied Materials Stock Performance

Applied Materials stock opened at $546.62 on Wednesday. The company has a debt-to-equity ratio of 0.22, a current ratio of 2.51 and a quick ratio of 1.80. The stock has a fifty day moving average price of $554.42 and a two-hundred day moving average price of $434.07. Applied Materials, Inc. has a 52-week low of $154.46 and a 52-week high of $739.67. The firm has a market capitalization of $433.99 billion, a P/E ratio of 51.33, a P/E/G ratio of 1.32 and a beta of 1.61.

Applied Materials (NASDAQ:AMAT - Get Free Report) last issued its earnings results on Thursday, May 14th. The manufacturing equipment provider reported $2.86 EPS for the quarter, beating the consensus estimate of $2.68 by $0.18. The company had revenue of $7.91 billion for the quarter, compared to the consensus estimate of $7.68 billion. Applied Materials had a net margin of 29.31% and a return on equity of 36.97%. The firm's revenue for the quarter was up 11.4% compared to the same quarter last year. During the same quarter in the previous year, the company earned $2.39 EPS. Applied Materials has set its Q3 2026 guidance at 3.160-3.560 EPS. As a group, analysts anticipate that Applied Materials, Inc. will post 12.14 EPS for the current fiscal year.

Applied Materials Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Thursday, August 20th will be paid a $0.53 dividend. The ex-dividend date is Thursday, August 20th. This represents a $2.12 dividend on an annualized basis and a dividend yield of 0.4%. Applied Materials's dividend payout ratio (DPR) is 19.91%.

More Applied Materials News

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

• Positive Sentiment: Semiconductor ETFs surged as much as 19% in a broad AI-driven rally, improving sentiment toward chip-equipment suppliers such as Applied Materials. Renewed expectations for AI infrastructure spending may support demand for the company’s wafer-fabrication equipment. Semiconductor ETFs Surge up to 19% in Huge Rally as the AI Trade Ramps Back Up
• Positive Sentiment: Analysts see a favorable setup for Applied Materials to beat its next quarterly earnings estimates, citing the company’s strong history of earnings surprises and currently positive forecast indicators. The company’s latest quarter also exceeded expectations, with $2.86 in EPS and $7.91 billion in revenue. Will Applied Materials Beat Estimates Again in Its Next Earnings Report?
• Neutral Sentiment: Applied Materials recently outperformed the broader market, reflecting stronger investor interest in the semiconductor-equipment group. However, the article primarily describes recent trading performance rather than identifying a new fundamental catalyst. Applied Materials Outperforms Broader Market: What You Need to Know
• Negative Sentiment: Some analysts remain cautious ahead of earnings despite Applied Materials’ strong fundamentals, with at least one downgrade pointing to elevated expectations and potential downside if results or guidance disappoint. The stock’s high earnings multiple increases its sensitivity to any slowdown in AI or semiconductor spending. Applied Materials: Strong Fundamentals, But I'm Downgrading Ahead of Earnings
• Negative Sentiment: Semiconductor stocks recently faced pressure over fears that Chinese competitors could intensify competition, potentially affecting pricing, market share and long-term growth prospects for U.S. equipment makers. Semiconductor Stocks Sink Over Fears of Increased Competition From China

Insiders Place Their Bets

In related news, SVP Timothy M. Deane sold 8,621 shares of the company's stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $590.76, for a total transaction of $5,092,941.96. Following the transaction, the senior vice president owned 134,631 shares in the company, valued at $79,534,609.56. This represents a 6.02% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, SVP Omkaram Nalamasu sold 24,263 shares of the stock in a transaction that occurred on Tuesday, June 16th. The shares were sold at an average price of $593.43, for a total transaction of $14,398,392.09. Following the sale, the senior vice president directly owned 146,916 shares in the company, valued at $87,184,361.88. This trade represents a 14.17% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 278,088 shares of company stock valued at $169,654,805 over the last three months. Company insiders own 0.30% of the company's stock.

About Applied Materials

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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