Commonwealth Retirement Investments LLC Reduces Holdings in Applied Materials, Inc. $AMAT

Key Points

• Commonwealth Retirement Investments LLC cut its Applied Materials stake by 57% in the second quarter, selling 9,834 shares and retaining 7,423 shares valued at approximately $5.37 million. Institutional investors collectively own 80.56% of AMAT.
• Applied Materials reported quarterly revenue of $9.12 billion and EPS of $3.50, exceeding analyst expectations, with revenue up 24.8% year over year. The company issued fiscal Q4 EPS guidance of $3.82–$4.22 and announced a quarterly dividend of $0.53 per share.
• Wall Street’s consensus view remains positive, with a “Moderate Buy” rating and an average price target of $640.17, although high valuation, competition, margin concerns and recent insider selling have weighed on investor sentiment.

Commonwealth Retirement Investments LLC decreased its position in shares of Applied Materials, Inc. (NASDAQ:AMAT - Free Report) by 57.0% during the second quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 7,423 shares of the manufacturing equipment provider's stock after selling 9,834 shares during the period. Applied Materials makes up about 1.5% of Commonwealth Retirement Investments LLC's investment portfolio, making the stock its 21st largest position. Commonwealth Retirement Investments LLC's holdings in Applied Materials were worth $5,367,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors have also made changes to their positions in the company. Capital Research Global Investors boosted its stake in shares of Applied Materials by 119.8% during the 4th quarter. Capital Research Global Investors now owns 32,707,049 shares of the manufacturing equipment provider's stock worth $8,405,458,000 after purchasing an additional 17,829,377 shares during the period. Norges Bank purchased a new stake in Applied Materials in the 4th quarter worth about $2,858,543,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its position in Applied Materials by 617.2% in the 3rd quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 9,129,483 shares of the manufacturing equipment provider's stock worth $1,869,170,000 after purchasing an additional 7,856,576 shares during the period. Auto Owners Insurance Co lifted its stake in Applied Materials by 25,824.4% in the fourth quarter. Auto Owners Insurance Co now owns 3,370,167 shares of the manufacturing equipment provider's stock worth $86,610,000 after purchasing an additional 3,357,167 shares during the last quarter. Finally, Coatue Management LLC boosted its position in shares of Applied Materials by 78.7% during the fourth quarter. Coatue Management LLC now owns 5,984,332 shares of the manufacturing equipment provider's stock valued at $1,537,913,000 after buying an additional 2,635,284 shares during the period. Hedge funds and other institutional investors own 80.56% of the company's stock.

Applied Materials Price Performance

Shares of AMAT stock opened at $507.18 on Friday. Applied Materials, Inc. has a twelve month low of $154.46 and a twelve month high of $739.67. The stock has a market capitalization of $402.68 billion, a price-to-earnings ratio of 43.72, a P/E/G ratio of 1.28 and a beta of 1.61. The stock has a fifty day simple moving average of $564.15 and a two-hundred day simple moving average of $444.89. The company has a current ratio of 2.51, a quick ratio of 1.80 and a debt-to-equity ratio of 0.22.

Applied Materials (NASDAQ:AMAT - Get Free Report) last posted its quarterly earnings results on Thursday, August 13th. The manufacturing equipment provider reported $3.50 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $3.40 by $0.10. The business had revenue of $9.12 billion for the quarter, compared to the consensus estimate of $8.99 billion. Applied Materials had a return on equity of 39.58% and a net margin of 30.05%.The business's revenue was up 24.8% compared to the same quarter last year. During the same quarter in the prior year, the company earned $2.48 EPS. Applied Materials has set its Q4 2026 guidance at 3.820-4.220 EPS. On average, analysts predict that Applied Materials, Inc. will post 12.48 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. Shareholders of record on Thursday, August 20th will be issued 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 is presently 19.91%.

Wall Street Analyst Weigh In

A number of research analysts have recently commented on the company. Zacks Research raised Applied Materials from a "hold" rating to a "strong-buy" rating in a research note on Wednesday, July 1st. Weiss Ratings reissued a "buy (b-)" rating on shares of Applied Materials in a research note on Wednesday, June 24th. Erste Group Bank cut Applied Materials from a "buy" rating to a "hold" rating in a report on Wednesday, August 5th. Susquehanna upped their price objective on Applied Materials from $575.00 to $900.00 and gave the company a "positive" rating in a research report on Tuesday, June 30th. Finally, Seaport Research Partners reiterated a "buy" rating and issued a $575.00 target price on shares of Applied Materials in a research note on Friday. One analyst has rated the stock with a Strong Buy rating, twenty-seven have issued a Buy rating and six have given a Hold rating to the company's stock. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $640.17.

Key Stories Impacting Applied Materials

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

• Positive Sentiment: Record quarterly performance: Fiscal Q3 revenue rose 24.8% year over year to $9.12 billion, ahead of the $8.99 billion consensus estimate, while adjusted EPS of $3.50 exceeded expectations. AI infrastructure demand, advanced packaging and memory spending supported growth. Applied Materials Q3 Earnings Beat Estimates, Revenues Rise Y/Y
• Positive Sentiment: Above-consensus outlook: Management projected fiscal Q4 revenue of approximately $9.8 billion to $10.8 billion and EPS of $3.82 to $4.22, both above analyst expectations. The company also pointed to stronger systems growth and unusually long customer visibility into fiscal 2027 and beyond. Applied Materials Forecasts Quarterly Revenue Above Estimates
• Positive Sentiment: Analyst and institutional support: JPMorgan, RBC, TD Cowen, B. Riley, Needham and other firms maintained positive ratings or raised price targets. Soros Capital also reportedly added AMAT among several semiconductor positions, reinforcing the longer-term AI and chip-cycle investment case. Soros Capital Loads Up on Semiconductor Stocks
• Neutral Sentiment: Options imply a possible rebound: Derivatives-market data indicates traders expect the pullback could be temporary, although elevated volatility reflects uncertainty over the stock’s near-term direction. Applied Materials Options Data
• Negative Sentiment: Expectations were exceptionally high: Despite the earnings beat and upbeat guidance, investors wanted faster growth and clearer evidence that AMAT is outpacing rivals in semiconductor manufacturing equipment. Concerns about competition, margins and the pace of systems growth overshadowed the headline results. Applied Materials Slips as Investors Seek Faster Growth
• Negative Sentiment: Broader market pressure added to selling: Weaker July retail-sales data, profit-taking after record highs and a semiconductor-sector selloff weighed on AMAT and other AI-related stocks.

Insider Buying and Selling at Applied Materials

In other news, Director Thomas J. Iannotti sold 9,250 shares of the company's stock in a transaction that occurred on Tuesday, June 16th. The shares were sold at an average price of $599.77, for a total value of $5,547,872.50. Following the completion of the sale, the director owned 40,559 shares of the company's stock, valued at approximately $24,326,071.43. This represents a 18.57% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, insider Prabu G. Raja sold 50,000 shares of the stock in a transaction that occurred on Thursday, June 4th. The shares were sold at an average price of $505.28, for a total transaction of $25,264,000.00. Following the transaction, the insider owned 356,642 shares in the company, valued at approximately $180,204,069.76. This represents a 12.30% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 278,088 shares of company stock worth $169,654,805. 0.30% of the stock is currently owned by company insiders.

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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