Cornerstone Advisors LLC Takes $15.71 Million Position in Applied Materials, Inc. $AMAT

Key Points

• Cornerstone Advisors acquired a new $15.71 million stake in Applied Materials during the second quarter, purchasing 21,733 shares. 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 estimates. The company issued fourth-quarter EPS guidance of $3.82–$4.22.
• Analyst sentiment remains broadly positive, with a consensus “Moderate Buy” rating and an average price target of $659.83, although insider selling and a broader chip-equipment sector selloff present risks.

Cornerstone Advisors LLC acquired a new position in Applied Materials, Inc. (NASDAQ:AMAT - Free Report) in the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The firm acquired 21,733 shares of the manufacturing equipment provider's stock, valued at approximately $15,713,000.

Several other institutional investors and hedge funds have also recently added to or reduced their stakes in the business. Cornerstone Financial Management LLC acquired a new stake in Applied Materials in the fourth quarter worth about $25,000. Wilkerson Advisory Group LLC purchased a new stake in shares of Applied Materials during the fourth quarter worth about $26,000. Financial Freedom LLC acquired a new position in shares of Applied Materials during the first quarter valued at about $28,000. Joseph Group Capital Management purchased a new position in shares of Applied Materials in the 4th quarter valued at approximately $31,000. Finally, Dogwood Wealth Management LLC raised its position in shares of Applied Materials by 52.4% in the 4th quarter. Dogwood Wealth Management LLC now owns 128 shares of the manufacturing equipment provider's stock valued at $33,000 after purchasing an additional 44 shares during the last quarter. 80.56% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

Several analysts have weighed in on AMAT shares. Barclays boosted their target price on shares of Applied Materials from $500.00 to $590.00 and gave the stock an "overweight" rating in a research report on Thursday, June 11th. Needham & Company LLC reaffirmed a "buy" rating and issued a $740.00 price target on shares of Applied Materials in a report on Friday, August 14th. Morgan Stanley lowered their price objective on shares of Applied Materials from $646.00 to $642.00 and set an "equal weight" rating for the company in a research note on Friday, August 14th. Seaport Research Partners reissued a "buy" rating and set a $575.00 price objective on shares of Applied Materials in a report on Friday, August 14th. Finally, Weiss Ratings reissued a "buy (b-)" rating on shares of Applied Materials in a research report on Wednesday, June 24th. One investment analyst has rated the stock with a Strong Buy rating, twenty-seven have issued a Buy rating and five have given a Hold rating to the company's stock. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price of $659.83.

Insider Activity

In other Applied Materials news, Director Thomas J. Iannotti sold 9,250 shares of the stock in a transaction dated Tuesday, June 16th. The stock was sold at an average price of $599.77, for a total transaction of $5,547,872.50. Following the sale, the director directly owned 40,559 shares of the company's stock, valued at approximately $24,326,071.43. This trade 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 Applied Materials stock in a transaction dated Thursday, June 4th. The shares were sold at an average price of $505.28, for a total value of $25,264,000.00. Following the transaction, the insider owned 356,642 shares of the company's stock, valued at $180,204,069.76. The trade was a 12.30% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 277,820 shares of company stock valued at $169,538,434 over the last quarter. Insiders own 0.30% of the company's stock.

Key Stories Impacting Applied Materials

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

• Positive Sentiment: AI-driven demand outlook remains strong. JPMorgan maintained an Overweight rating and said Applied Materials’ semiconductor-systems revenue could grow about 40% this year, with AI-related spending expected to account for roughly 80% of chip-equipment demand. Applied Materials Sees Years Of AI-Fueled Growth Ahead
• Positive Sentiment: Product launches support advanced packaging and memory growth. New equipment aimed at AI-related chip production, advanced packaging and high-bandwidth memory could benefit Applied Materials as memory manufacturers increase capacity. Can Applied Materials Sustain Its Growth Amid AI-Driven Demand?
• Positive Sentiment: Analyst support remains constructive. Berenberg issued a Buy rating, while recent research coverage and a Zacks Strong Buy momentum ranking provide additional near-term support for AMAT. Applied Materials Receives a Buy from Berenberg Bank
• Neutral Sentiment: Recent results were strong but already appear reflected in expectations. Applied Materials reported record quarterly revenue of $9.12 billion, up 24.8% year over year, and exceeded earnings and revenue estimates. Its above-consensus next-quarter guidance has not prevented the stock from declining, indicating investors may be focused on valuation, positioning and broader sector concerns. Applied Materials Delivered a Record Quarter
• Negative Sentiment: Institutional selling is weighing on sentiment. Paul Tudor Jones liquidated his common-stock position and reportedly increased his put exposure. Dr. Michael Burry is also betting against AMAT, creating headline risk even though these trades do not necessarily represent a broad rejection of AI investment. Paul Tudor Jones Liquidated His Applied Materials Stake
• Negative Sentiment: Chip-equipment stocks are facing a sector-wide selloff. Applied Materials, Lam Research and Teradyne have fallen together, raising concerns about semiconductor-cycle timing, customer capital-expenditure plans and whether AI expectations have become too optimistic. What Is Prompting the Selloff in Chip Equipment Stocks?

Applied Materials Price Performance

Shares of NASDAQ:AMAT opened at $496.21 on Friday. Applied Materials, Inc. has a twelve month low of $154.46 and a twelve month high of $739.67. The company's 50 day moving average is $564.17 and its 200 day moving average is $450.76. The company has a current ratio of 2.42, a quick ratio of 1.79 and a debt-to-equity ratio of 0.20. The company has a market cap of $393.97 billion, a PE ratio of 42.78, a price-to-earnings-growth ratio of 1.06 and a beta of 1.61.

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. Applied Materials had a net margin of 30.05% and a return on equity of 38.02%. The company had revenue of $9.12 billion during the quarter, compared to analyst estimates of $8.99 billion. During the same period last year, the firm posted $2.48 EPS. Applied Materials's revenue for the quarter was up 24.8% compared to the same quarter last year. Applied Materials has set its Q4 2026 guidance at 3.820-4.220 EPS. On average, sell-side analysts forecast that Applied Materials, Inc. will post 12.73 EPS for the current year.

Applied Materials Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Investors 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 dividend yield of 0.4%. The ex-dividend date of this dividend is Thursday, August 20th. Applied Materials's dividend payout ratio (DPR) is 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