Arini Capital Management Ltd Acquires Shares of 10,000 Applied Materials, Inc. $AMAT

Key Points

• Arini Capital Management purchased 10,000 Applied Materials shares worth approximately $7.23 million during the second quarter, making AMAT about 0.7% of its portfolio. Institutional investors collectively own 80.56% of the company.
• Applied Materials reported strong quarterly results, with revenue rising 24.8% year over year to $9.12 billion and EPS of $3.50, exceeding analyst expectations. Growth is being supported by AI-related semiconductor demand and a healthy services business.
• Wall Street maintains a “Moderate Buy” consensus with an average price target of $657.76, but China-related export risks and substantial insider selling remain concerns for investors.

Arini Capital Management Ltd bought a new position in Applied Materials, Inc. (NASDAQ:AMAT - Free Report) during the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm bought 10,000 shares of the manufacturing equipment provider's stock, valued at approximately $7,230,000. Applied Materials comprises about 0.7% of Arini Capital Management Ltd's investment portfolio, making the stock its 18th biggest position.

Other hedge funds also recently bought and sold shares of the company. Cornerstone Financial Management LLC bought a new position in shares of Applied Materials during the fourth quarter valued at approximately $25,000. Wilkerson Advisory Group LLC bought a new stake in Applied Materials in the fourth quarter valued at $26,000. Harborfront Financial Group LLC purchased a new position in Applied Materials during the 2nd quarter valued at $27,000. Financial Freedom LLC purchased a new position in Applied Materials during the 1st quarter valued at $28,000. Finally, Joseph Group Capital Management bought a new position in Applied Materials in the 4th quarter worth $31,000. Hedge funds and other institutional investors own 80.56% of the company's stock.

Key Applied Materials News

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

• Positive Sentiment: Qualcomm executive joins the board: Applied Materials appointed Qualcomm CFO and COO Akash Palkhiwala as a director and Audit Committee member. His semiconductor-industry, finance and operating experience could strengthen the board as AMAT targets growth in advanced logic, memory and AI infrastructure. Applied Materials Appoints Akash Palkhiwala to Board of Directors
• Positive Sentiment: AI buildout supports earnings momentum: Recent coverage highlights AMAT’s record quarter-over-quarter revenue increase, with quarterly revenue of $9.12 billion, up 25% year over year, and non-GAAP earnings per share of $3.50, up 41%. Demand is being driven by advanced DRAM, high-bandwidth memory, leading-edge logic and advanced packaging. The AI Buildout Is Turning Applied Materials Into A Profit Machine
• Positive Sentiment: Services business remains healthy: AMAT’s Applied Global Services segment reported record revenue and expanding margins, supported by subscription services, parts demand and increased semiconductor-fab utilization. This recurring revenue stream may help cushion equipment-cycle volatility. AMAT's AGS Business Gains Momentum
• Neutral Sentiment: Analyst upside remains substantial: The average Wall Street price target implies roughly 35% potential upside, although targets are estimates and AMAT’s elevated valuation makes further gains dependent on continued earnings growth. Does Applied Materials Have the Potential to Rally?
• Negative Sentiment: China exposure is a key overhang: New Chinese immersion DUV lithography capabilities and tighter export controls raise concerns about domestic competition and reduced access to China, a significant AMAT market. Applied Materials' China Problem Is Getting Worse
• Negative Sentiment: CFO stock sale adds a minor sentiment concern: CFO Brice Hill sold 7,500 shares worth approximately $3.6 million, reducing his holdings by 5.51%. The transaction does not change AMAT’s fundamentals but may weigh modestly on investor sentiment. SEC Insider Transaction Filing

Insiders Place Their Bets

In related news, SVP Omkaram Nalamasu sold 24,263 shares of the stock in a transaction on Tuesday, June 16th. The stock was 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 of the company's stock, valued at $87,184,361.88. This trade represents a 14.17% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, insider Prabu G. Raja sold 10,000 shares of Applied Materials stock in a transaction dated Thursday, June 18th. The stock was sold at an average price of $633.53, for a total value of $6,335,300.00. Following the completion of the sale, the insider owned 346,642 shares of the company's stock, valued at $219,608,106.26. The trade was a 2.80% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 284,192 shares of company stock worth $172,625,209. 0.30% of the stock is owned by corporate insiders.

Wall Street Analyst Weigh In

Several analysts have weighed in on AMAT shares. Argus set a $600.00 price objective on Applied Materials in a research report on Tuesday, August 18th. William Blair started coverage on Applied Materials in a research report on Tuesday, August 11th. They issued a "market perform" rating for the company. Stifel Nicolaus raised their target price on Applied Materials from $530.00 to $650.00 and gave the company a "buy" rating in a research note on Friday, July 10th. Wells Fargo & Company lifted their price target on Applied Materials from $715.00 to $740.00 and gave the company an "overweight" rating in a research report on Friday, June 26th. Finally, B. Riley Financial reiterated a "buy" rating and issued a $700.00 price objective (down from $790.00) on shares of Applied Materials in a report on Friday, August 14th. One analyst has rated the stock with a Strong Buy rating, twenty-seven have issued a Buy rating and five have issued a Hold rating to the company's stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $657.76.

Applied Materials Stock Up 0.5%

NASDAQ:AMAT opened at $482.36 on Friday. The company has a debt-to-equity ratio of 0.20, a quick ratio of 1.79 and a current ratio of 2.42. The firm has a market cap of $382.80 billion, a P/E ratio of 41.58, a P/E/G ratio of 1.03 and a beta of 1.61. Applied Materials, Inc. has a fifty-two week low of $154.46 and a fifty-two week high of $739.67. The firm has a 50-day simple moving average of $553.91 and a two-hundred day simple moving average of $456.73.

Applied Materials (NASDAQ:AMAT - Get Free Report) last posted its quarterly earnings results on Thursday, August 13th. The manufacturing equipment provider reported $3.50 EPS for the quarter, beating analysts' consensus estimates of $3.40 by $0.10. The firm had revenue of $9.12 billion for the quarter, compared to analysts' expectations of $8.99 billion. Applied Materials had a net margin of 30.05% and a return on equity of 38.02%. The business's revenue for the quarter was up 24.8% on a year-over-year basis. During the same quarter in the prior year, the company posted $2.48 earnings per share. Applied Materials has set its Q4 2026 guidance at 3.820-4.220 EPS. Analysts predict that Applied Materials, Inc. will post 12.73 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, September 10th. Shareholders of record on Thursday, August 20th will be paid a dividend of $0.53 per share. This represents a $2.12 annualized dividend and a yield of 0.4%. The ex-dividend date is Thursday, August 20th. Applied Materials's dividend payout ratio (DPR) is currently 18.28%.

Applied Materials Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source