Beacon Investment Advisory Services Inc. Sells 14,402 Shares of Applied Materials, Inc. $AMAT

Key Points

• Beacon Investment Advisory Services reduced its Applied Materials position by 14.3%, selling 14,402 shares and retaining 86,486 shares valued at approximately $62.5 million. Institutional investors and hedge funds collectively own 80.56% of AMAT.
• Applied Materials reported stronger-than-expected quarterly results, with EPS of $2.86 and revenue of $7.91 billion, up 11.4% year over year. The company also declared a quarterly dividend of $0.53 per share, equating to a 0.4% yield.
• Analysts remain broadly bullish, with a consensus “Moderate Buy” rating and a $603.23 target price, but elevated valuation and insider selling present risks. Insiders sold 278,088 shares worth roughly $169.7 million over the past three months.

Beacon Investment Advisory Services Inc. trimmed its position in Applied Materials, Inc. (NASDAQ:AMAT - Free Report) by 14.3% during the second quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 86,486 shares of the manufacturing equipment provider's stock after selling 14,402 shares during the period. Applied Materials makes up approximately 2.3% of Beacon Investment Advisory Services Inc.'s investment portfolio, making the stock its 10th largest holding. Beacon Investment Advisory Services Inc.'s holdings in Applied Materials were worth $62,529,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds also recently modified their holdings of the company. Evolve Private Wealth LLC boosted its position in Applied Materials by 59.0% during the first quarter. Evolve Private Wealth LLC now owns 2,875 shares of the manufacturing equipment provider's stock valued at $983,000 after purchasing an additional 1,067 shares during the last quarter. WealthPlan Investment Management LLC bought a new stake in shares of Applied Materials during the 4th quarter worth approximately $1,082,000. Ameritas Advisory Services LLC boosted its holdings in shares of Applied Materials by 183.7% in the 4th quarter. Ameritas Advisory Services LLC now owns 3,073 shares of the manufacturing equipment provider's stock valued at $790,000 after buying an additional 1,990 shares during the last quarter. Assetmark Inc. grew its stake in shares of Applied Materials by 9.3% in the fourth quarter. Assetmark Inc. now owns 376,513 shares of the manufacturing equipment provider's stock valued at $96,760,000 after buying an additional 32,136 shares in the last quarter. Finally, CloudAlpha Capital Management Limited Hong Kong grew its stake in shares of Applied Materials by 204.8% in the fourth quarter. CloudAlpha Capital Management Limited Hong Kong now owns 140,773 shares of the manufacturing equipment provider's stock valued at $36,177,000 after buying an additional 94,587 shares in the last quarter. 80.56% of the stock is owned by institutional investors and hedge funds.

Applied Materials Price Performance

Shares of Applied Materials stock opened at $539.14 on Friday. The company has a quick ratio of 1.80, a current ratio of 2.51 and a debt-to-equity ratio of 0.22. The stock has a market capitalization of $428.06 billion, a price-to-earnings ratio of 50.62, a price-to-earnings-growth ratio of 1.34 and a beta of 1.61. Applied Materials, Inc. has a twelve month low of $154.46 and a twelve month high of $739.67. The company has a 50-day simple moving average of $559.47 and a two-hundred day simple moving average of $437.71.

Applied Materials (NASDAQ:AMAT - Get Free Report) last announced its earnings results on Thursday, May 14th. The manufacturing equipment provider reported $2.86 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.68 by $0.18. Applied Materials had a net margin of 29.31% and a return on equity of 36.97%. The firm had revenue of $7.91 billion for the quarter, compared to analyst estimates of $7.68 billion. During the same quarter in the prior year, the business posted $2.39 EPS. The business's 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. Analysts forecast that Applied Materials, Inc. will post 12.17 EPS for the current year.

Applied Materials Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Thursday, August 20th will be given a dividend of $0.53 per share. The ex-dividend date of this dividend is Thursday, August 20th. This represents a $2.12 dividend on an annualized basis and a yield of 0.4%. Applied Materials's dividend payout ratio is currently 19.91%.

Analyst Upgrades and Downgrades

Several equities research analysts recently issued reports on the stock. TD Cowen raised their target price on shares of Applied Materials from $525.00 to $700.00 and gave the company a "buy" rating in a research note on Thursday, July 9th. Deutsche Bank Aktiengesellschaft increased their price objective on shares of Applied Materials from $450.00 to $550.00 and gave the company a "buy" rating in a research report on Friday, May 15th. Needham & Company LLC increased their price target on shares of Applied Materials from $530.00 to $740.00 and gave the company a "buy" rating in a report on Friday, July 10th. JPMorgan Chase & Co. boosted their price objective on Applied Materials from $400.00 to $515.00 and gave the stock an "overweight" rating in a report on Friday, May 15th. Finally, KeyCorp upped their target price on Applied Materials from $550.00 to $750.00 and gave the company an "overweight" rating in a research report on Monday, June 29th. One analyst has rated the stock with a Strong Buy rating, twenty-six have issued a Buy rating and seven have given a Hold rating to the company's stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $603.23.

Key Stories Impacting Applied Materials

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

• Positive Sentiment: Analysts remain broadly optimistic about AMAT, with consensus price targets implying additional upside. Citi reportedly identified Applied Materials as a top semiconductor pick following the sector’s selloff, while other coverage highlights the company’s strong position in deposition, etch, inspection and wafer-processing equipment. Are Wall Street Analysts Predicting Applied Materials Stock Will Climb or Sink?
• Positive Sentiment: AI infrastructure spending is supporting the outlook for semiconductor manufacturing equipment. A potential Tesla-SpaceX “Terafab” buildout, along with rising demand for AI chips, advanced packaging and memory, could create additional opportunities for Applied Materials. Tesla-SpaceX Terafab Bet
• Positive Sentiment: Expectations for the August 13 report are favorable: analysts anticipate earnings growth and a potential beat. Applied Materials’ previous quarter exceeded consensus on both earnings and revenue, with revenue up 11.4% year over year, providing a constructive comparison for the upcoming release. Applied Materials Reports Next Week
• Neutral Sentiment: Options markets are pricing a potentially large earnings move, reportedly around 11%. That highlights significant event risk: a strong report and outlook could extend the rally, but merely meeting high expectations may not be enough. Options Market and AMAT’s Earnings Move
• Negative Sentiment: Erste Group Bank lowered its rating on AMAT to Hold. The downgrade adds pressure after the stock’s strong rebound and reinforces concerns that substantial AI optimism is already reflected in the valuation. Applied Materials Rating Lowered to Hold
• Negative Sentiment: Investor Michael Burry’s disclosed short positions in AI-linked semiconductor names, including Applied Materials, have revived concerns about an AI-stock reversal and heightened volatility. As Burry Targets AI Chip Names

Insider Transactions at Applied Materials

In other news, insider Prabu G. Raja sold 50,000 shares of the company's stock in a transaction on Thursday, June 4th. The stock was sold at an average price of $505.28, for a total transaction of $25,264,000.00. Following the completion of the sale, the insider directly owned 356,642 shares in the company, valued at approximately $180,204,069.76. This represents a 12.30% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, 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 value of $14,398,392.09. Following the sale, the senior vice president directly owned 146,916 shares in the company, valued at approximately $87,184,361.88. This trade represents a 14.17% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 278,088 shares of company stock worth $169,654,805. Corporate insiders own 0.30% of the company's stock.

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.

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