ARS Investment Partners LLC Increases Stake in Applied Materials, Inc. $AMAT

Key Points

• ARS Investment Partners boosted its stake in Applied Materials by 10.7% in the first quarter, ending with 21,046 shares valued at about $7.19 million.
• Wall Street sentiment remains upbeat: several firms raised price targets, and the stock now carries a Moderate Buy consensus with an average target of $489.16.
• Applied Materials reported strong quarterly results, beating EPS and revenue estimates, while also issuing quarterly guidance and declaring a $0.53 dividend payable in September.

ARS Investment Partners LLC increased its stake in Applied Materials, Inc. (NASDAQ:AMAT - Free Report) by 10.7% during the 1st quarter, according to its most recent Form 13F filing with the SEC. The fund owned 21,046 shares of the manufacturing equipment provider's stock after acquiring an additional 2,027 shares during the period. ARS Investment Partners LLC's holdings in Applied Materials were worth $7,193,000 as of its most recent SEC filing.

A number of other institutional investors have also recently bought and sold shares of AMAT. First Trust Advisors LP raised its holdings in shares of Applied Materials by 4.9% in the 3rd quarter. First Trust Advisors LP now owns 3,101,772 shares of the manufacturing equipment provider's stock worth $635,057,000 after purchasing an additional 145,050 shares during the period. Elo Mutual Pension Insurance Co grew its holdings in shares of Applied Materials by 21.8% during the 3rd quarter. Elo Mutual Pension Insurance Co now owns 96,712 shares of the manufacturing equipment provider's stock worth $19,801,000 after purchasing an additional 17,288 shares during the period. Worth Asset Management LLC purchased a new stake in shares of Applied Materials during the 4th quarter worth about $1,531,000. World Investment Advisors increased its position in Applied Materials by 4.5% during the 4th quarter. World Investment Advisors now owns 82,296 shares of the manufacturing equipment provider's stock worth $21,149,000 after purchasing an additional 3,508 shares in the last quarter. Finally, Avity Investment Management Inc. increased its position in Applied Materials by 1.1% during the 3rd quarter. Avity Investment Management Inc. now owns 223,211 shares of the manufacturing equipment provider's stock worth $45,700,000 after purchasing an additional 2,376 shares in the last quarter. 80.56% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

A number of brokerages have weighed in on AMAT. Wolfe Research lifted their price target on shares of Applied Materials from $500.00 to $550.00 and gave the company an "outperform" rating in a research report on Friday, May 15th. Wall Street Zen raised shares of Applied Materials from a "hold" rating to a "buy" rating in a research report on Saturday, May 23rd. KeyCorp increased their price objective on shares of Applied Materials from $450.00 to $550.00 and gave the stock an "overweight" rating in a research report on Friday, May 15th. The Goldman Sachs Group raised their target price on shares of Applied Materials from $390.00 to $520.00 and gave the company a "buy" rating in a research note on Friday, May 15th. Finally, Barclays lifted their target price on shares of Applied Materials from $500.00 to $590.00 and gave the company an "overweight" rating in a report on Thursday, June 11th. Twenty-seven analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the company. According to MarketBeat.com, Applied Materials presently has a consensus rating of "Moderate Buy" and an average price target of $489.16.

Applied Materials News Summary

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

• Positive Sentiment: Applied Materials’ AGS services business is being highlighted as a long-term growth engine, with AI-enabled services and expanding margins potentially creating more recurring revenue. Can AMAT's AGS Business Become a Long-Term Growth Driver?
• Positive Sentiment: Shares are benefiting from renewed enthusiasm around AI demand and strong earnings momentum, with articles noting the stock has been hitting new highs after solid results and upbeat guidance. AI Demand, Earnings Send Applied Materials to New Highs
• Positive Sentiment: Applied Materials launched SENZ with Qualcomm and EssilorLuxottica for AI eyewear, reinforcing investor hopes that the company can expand beyond core chipmaking tools into adjacent growth markets. Applied Materials (AMAT) Launches SENZ With Qualcomm And EssilorLuxottica For AI Eyewear
• Positive Sentiment: Analyst sentiment remains constructive, with higher price targets such as Citi’s $710 view helping fuel the rally by suggesting AI demand can justify the premium valuation. Applied Materials (AMAT) Stock Rallies 8.75% on Citi’s Bullish $710 Price Target
• Neutral Sentiment: Several insiders, including CEO Gary Dickerson and SVP Omkaram Nalamasu, sold shares this week; while the sales were small relative to their remaining holdings, they can weigh on sentiment. Why Applied Materials Insiders Sold $65 Million Worth of Stock
• Neutral Sentiment: Some commentary warns the stock looks expensive after a sharp year-to-date surge, with valuation comparisons to the dot-com era potentially prompting caution despite the strong fundamental backdrop. Applied Materials stock valuation and performance

Applied Materials Stock Performance

Applied Materials stock opened at $617.11 on Friday. The stock's 50 day moving average price is $451.05 and its 200 day moving average price is $364.90. The firm has a market capitalization of $489.96 billion, a PE ratio of 57.94, a price-to-earnings-growth ratio of 1.72 and a beta of 1.67. The company has a debt-to-equity ratio of 0.22, a quick ratio of 1.80 and a current ratio of 2.51. Applied Materials, Inc. has a one year low of $154.46 and a one year high of $638.90.

Applied Materials (NASDAQ:AMAT - Get Free Report) last released its quarterly earnings results on Thursday, May 14th. The manufacturing equipment provider reported $2.86 earnings per share for the quarter, topping analysts' consensus estimates of $2.68 by $0.18. Applied Materials had a return on equity of 36.97% and a net margin of 29.31%.The firm had revenue of $7.91 billion during the quarter, compared to analysts' expectations of $7.68 billion. During the same quarter in the prior year, the business earned $2.39 EPS. Applied Materials's quarterly revenue was up 11.4% compared to the same quarter last year. Applied Materials has set its Q3 2026 guidance at 3.160-3.560 EPS. As a group, sell-side analysts expect that Applied Materials, Inc. will post 12.1 EPS for the current fiscal year.

Applied Materials Announces Dividend

The company 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 annualized dividend and a dividend yield of 0.3%. Applied Materials's dividend payout ratio is 19.91%.

Insiders Place Their Bets

In related news, insider Prabu G. Raja sold 50,000 shares of the stock in a transaction dated Thursday, June 4th. The stock was sold at an average price of $505.28, for a total value of $25,264,000.00. Following the completion of the transaction, the insider owned 356,642 shares of the company's stock, valued at approximately $180,204,069.76. This represents a 12.30% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this link. Also, SVP Omkaram Nalamasu sold 24,263 shares of the firm's stock in a transaction that occurred on Tuesday, June 16th. The shares were sold at an average price of $593.43, for a total value of $14,398,392.09. Following the sale, the senior vice president owned 146,916 shares of the company's stock, valued at approximately $87,184,361.88. This trade represents a 14.17% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 189,767 shares of company stock valued at $107,769,409. Corporate insiders own 0.30% of the company's stock.

Applied Materials Company 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.

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