Compass Financial Management LLC Makes New $2.05 Million Investment in Applied Materials, Inc. $AMAT

Key Points

• Compass Financial Management acquired 2,839 Applied Materials shares in the second quarter, representing a new position valued at approximately $2.05 million. Institutional investors own 80.56% of the company.
• Applied Materials exceeded quarterly expectations, reporting $3.50 in EPS on $9.12 billion in revenue, with revenue up 24.8% year over year. The company also declared a quarterly dividend of $0.53 per share.
• Analyst sentiment remains positive, with a consensus “Moderate Buy” rating and an average price target of $658.45, although insiders have sold $146.1 million of stock over the past 90 days and semiconductor-cycle risks remain.

Compass Financial Management LLC acquired a new stake in shares of Applied Materials, Inc. (NASDAQ:AMAT - Free Report) in the second quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm acquired 2,839 shares of the manufacturing equipment provider's stock, valued at approximately $2,053,000.

Several other hedge funds and other institutional investors also recently made changes to their positions in AMAT. Harborfront Financial Group LLC bought a new stake in Applied Materials during the 2nd quarter worth approximately $27,000. Orion Capital Management LLC bought a new position in shares of Applied Materials in the second quarter valued at approximately $33,000. Highland Investment Advisors LLC bought a new position in shares of Applied Materials in the second quarter valued at approximately $33,000. BOK Financial Private Wealth Inc. purchased a new position in shares of Applied Materials during the second quarter valued at approximately $41,000. Finally, Financial Freedom LLC purchased a new position in shares of Applied Materials during the first quarter valued at approximately $28,000. 80.56% of the stock is owned by institutional investors.

Insider Activity

In other news, CEO Gary E. Dickerson sold 71,727 shares of the stock in a transaction that occurred on Tuesday, June 16th. The shares were sold at an average price of $593.75, for a total transaction of $42,587,906.25. Following the completion of the transaction, the chief executive officer directly owned 1,695,164 shares of the company's stock, valued at $1,006,503,625. This represents a 4.06% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Prabu G. Raja sold 10,000 shares of the firm's stock in a transaction that occurred on Thursday, June 18th. The stock was sold at an average price of $633.53, for a total transaction of $6,335,300.00. Following the sale, the insider owned 346,642 shares of the company's stock, valued at approximately $219,608,106.26. The trade was a 2.80% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 231,692 shares of company stock worth $146,114,059. 0.30% of the stock is owned by insiders.

Applied Materials Trading Up 4.3%

Shares of Applied Materials stock opened at $454.71 on Friday. The firm has a market cap of $360.86 billion, a PE ratio of 39.20, a P/E/G ratio of 1.27 and a beta of 1.60. Applied Materials, Inc. has a 1 year low of $158.82 and a 1 year high of $739.67. The company has a debt-to-equity ratio of 0.20, a current ratio of 2.42 and a quick ratio of 1.79. The stock has a fifty day moving average price of $533.24 and a 200-day moving average price of $460.59.

Applied Materials (NASDAQ:AMAT - Get Free Report) last issued its quarterly earnings results on Thursday, August 13th. The manufacturing equipment provider reported $3.50 earnings per share for the quarter, topping analysts' consensus estimates of $3.40 by $0.10. The company had revenue of $9.12 billion for the quarter, compared to the consensus estimate of $8.99 billion. Applied Materials had a net margin of 30.05% and a return on equity of 38.02%. The firm's quarterly revenue was up 24.8% on a year-over-year basis. During the same period in the previous year, the firm earned $2.48 EPS. Applied Materials has set its Q4 2026 guidance at 3.820-4.220 EPS. Equities research analysts anticipate that Applied Materials, Inc. will post 12.76 EPS for the current year.

Applied Materials Dividend Announcement

The business 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 $0.53 dividend. This represents a $2.12 dividend on an annualized basis and a yield of 0.5%. The ex-dividend date is Thursday, August 20th. Applied Materials's payout ratio is presently 18.28%.

Applied Materials News Summary

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

• Positive Sentiment: AI-driven equipment demand remains the main catalyst. Growth in advanced packaging, DRAM and high-bandwidth memory (HBM), along with accelerating global fab investment, is strengthening the outlook for Applied Materials’ equipment orders. AMAT Rides on AI-Led WFE Demand: Can it Sustain the Momentum?
• Positive Sentiment: Raised forecasts have driven a major valuation re-rating. Although trailing-twelve-month revenue growth was only 7.8%, management reportedly increased its forecast twice between February and August as semiconductor demand expectations improved. That forward-growth story helps explain the stock’s roughly 180% one-year return. Why Did Applied Materials Stock Nearly Triple On Single-Digit Trailing Revenue Growth?
• Positive Sentiment: Analyst expectations are improving. UBS projected strong potential appreciation for AMAT, while another analyst raised the fiscal 2027 EPS estimate, signaling continued confidence in earnings growth and semiconductor capital spending. UBS Group Forecasts Strong Price Appreciation for Applied Materials FY2027 EPS Estimate for Applied Materials Boosted by Analyst
• Neutral Sentiment: Valuation remains a key debate. Despite a recent pullback, AMAT has gained about 237% over five years, leaving investors questioning how much AI and semiconductor-cycle optimism is already reflected in the shares. Can Applied Materials Still Look Cheap After a 237% Run?
• Negative Sentiment: Industry-cycle risks have not disappeared. Optimism about a permanently stronger semiconductor cycle is tempered by potential memory-capacity imbalances, which could pressure chipmakers’ capital spending if supply expands faster than demand. SEMIs CEO Has Watched Four Decades of Chip Cycles

Analyst Upgrades and Downgrades

Several analysts have recently commented on AMAT shares. Sanford C. Bernstein increased their target price on shares of Applied Materials from $675.00 to $700.00 and gave the company an "outperform" rating in a report on Friday, August 14th. Needham & Company LLC restated a "buy" rating and set a $740.00 price target on shares of Applied Materials in a report on Friday, August 14th. HC Wainwright set a $850.00 price objective on shares of Applied Materials in a research report on Monday, June 29th. Wolfe Research increased their price objective on shares of Applied Materials from $500.00 to $550.00 and gave the company an "outperform" rating in a research note on Friday, May 15th. Finally, KeyCorp lifted their target price on shares of Applied Materials from $550.00 to $750.00 and gave the stock an "overweight" rating in a research report on Monday, June 29th. One analyst has rated the stock with a Strong Buy rating, twenty-seven have issued a Buy rating and five have assigned a Hold rating to the stock. Based on data from MarketBeat, Applied Materials currently has a consensus rating of "Moderate Buy" and an average price target of $658.45.

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.

Want to see what other hedge funds are holding AMAT? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Applied Materials, Inc. (NASDAQ:AMAT - Free Report).

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