Cwm LLC Acquires 3,708 Shares of Applied Materials, Inc. $AMAT

Key Points

• Cwm LLC increased its stake in Applied Materials by 4.6%, buying 3,708 shares and bringing its holding to 85,116 shares worth approximately $21.87 million.
• Applied Materials reported a beat with $2.38 EPS versus a $2.21 estimate and $7.01 billion revenue, set Q2 guidance of 2.440–2.840 EPS, and raised its quarterly dividend to $0.53 ($2.12 annual).
• Market sentiment is bullish: multiple analyst upgrades and higher price targets (e.g., Mizuho $410, UBS $430, B. Riley $485), supported by new 2nm AI/HPC tool launches and potential demand from Elon Musk’s Terafab project, giving a consensus rating of "Moderate Buy."

Cwm LLC grew its holdings in shares of Applied Materials, Inc. (NASDAQ:AMAT - Free Report) by 4.6% in the fourth quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 85,116 shares of the manufacturing equipment provider's stock after acquiring an additional 3,708 shares during the period. Cwm LLC's holdings in Applied Materials were worth $21,874,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other hedge funds have also recently modified their holdings of the business. Slagle Financial LLC grew its position in shares of Applied Materials by 4.3% during the 4th quarter. Slagle Financial LLC now owns 1,224 shares of the manufacturing equipment provider's stock valued at $315,000 after acquiring an additional 51 shares during the period. Diversified Management Inc. bought a new stake in shares of Applied Materials during the 4th quarter valued at $739,000. Childress Capital Advisors LLC lifted its stake in shares of Applied Materials by 15.2% during the 4th quarter. Childress Capital Advisors LLC now owns 4,458 shares of the manufacturing equipment provider's stock valued at $1,146,000 after buying an additional 589 shares in the last quarter. Roman Butler Fullerton & Co. purchased a new position in shares of Applied Materials during the 4th quarter valued at $162,000. Finally, Austin Wealth Management LLC purchased a new position in shares of Applied Materials during the 4th quarter valued at $202,000. Institutional investors own 80.56% of the company's stock.

Applied Materials Trading Up 1.8%

Shares of AMAT stock opened at $396.94 on Friday. Applied Materials, Inc. has a 12-month low of $132.80 and a 12-month high of $407.29. The company has a current ratio of 2.71, a quick ratio of 1.94 and a debt-to-equity ratio of 0.30. The stock's 50-day moving average price is $359.89 and its 200-day moving average price is $294.65. The stock has a market capitalization of $315.02 billion, a price-to-earnings ratio of 40.63, a price-to-earnings-growth ratio of 1.74 and a beta of 1.64.

Applied Materials (NASDAQ:AMAT - Get Free Report) last issued its earnings results on Thursday, February 12th. The manufacturing equipment provider reported $2.38 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.21 by $0.17. Applied Materials had a return on equity of 37.52% and a net margin of 27.78%.The firm had revenue of $7.01 billion for the quarter, compared to analysts' expectations of $6.88 billion. During the same period in the previous year, the firm posted $2.38 earnings per share. The business's revenue was down 2.1% compared to the same quarter last year. Applied Materials has set its Q2 2026 guidance at 2.440-2.840 EPS. Equities research analysts predict that Applied Materials, Inc. will post 9.38 EPS for the current fiscal year.

Applied Materials Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, June 11th. Investors of record on Thursday, May 21st will be issued a $0.53 dividend. This represents a $2.12 dividend on an annualized basis and a dividend yield of 0.5%. The ex-dividend date of this dividend is Thursday, May 21st. This is a positive change from Applied Materials's previous quarterly dividend of $0.46. Applied Materials's payout ratio is 18.83%.

Analysts Set New Price Targets

AMAT has been the topic of a number of analyst reports. Summit Insights upgraded shares of Applied Materials from a "hold" rating to a "buy" rating in a research note on Friday, February 13th. Mizuho lifted their target price on shares of Applied Materials from $370.00 to $410.00 and gave the company an "outperform" rating in a research note on Friday, February 13th. KGI Securities upgraded shares of Applied Materials to an "outperform" rating and set a $425.00 target price on the stock in a research note on Friday, February 13th. Weiss Ratings restated a "buy (b-)" rating on shares of Applied Materials in a research note on Friday, March 27th. Finally, UBS Group set a $430.00 price target on shares of Applied Materials in a research note on Friday, February 13th. One investment analyst has rated the stock with a Strong Buy rating, twenty-six have given a Buy rating and seven have issued a Hold rating to the stock. Based on data from MarketBeat.com, Applied Materials has a consensus rating of "Moderate Buy" and a consensus price target of $368.29.

Trending Headlines about Applied Materials

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

• Positive Sentiment: New tools for next‑gen chips: AMAT unveiled the Precision Selective Nitride PECVD and Trillium ALD systems aimed at 2nm AI and HPC chips — this strengthens its content per chip and positions it to capture AI/HPC node transitions. Article Title
• Positive Sentiment: Potential large customer for fabs: Bloomberg/press reports say Elon Musk’s Terafab team has contacted AMAT (among others) for equipment quotes — if that project proceeds it could add meaningful new demand. Article Title
• Positive Sentiment: Analyst bullishness: B. Riley raised its price target on AMAT to $485 (Buy), reflecting a multi‑year AI-related outlook upgrade that supports higher valuations. Article Title
• Neutral Sentiment: Positive industry signals: peers TSMC and (expected) Lam Research results point to strong AI/HPC and DRAM spending, which is supportive for AMAT as an equipment supplier. Article Title Article Title
• Neutral Sentiment: Momentum & coverage: multiple Zacks pieces note heavy investor interest and recent strong short‑term performance (momentum), which can amplify moves but may also lead to volatile reversals. Article Title
• Negative Sentiment: Competitive and valuation pressure: relative comparisons (NVDA vs AMAT) and broader peer valuations (ASML/US peers) highlight that investors may prefer higher‑growth alternatives like NVIDIA, which could limit further multiple expansion for AMAT. Article Title
• Negative Sentiment: Near‑term softness in revenue: most recent quarter showed slight year‑over‑year revenue decline (about -2.1%), so while earnings beat and guidance were constructive, demand remains lumpy and could lead to volatility if orders don’t accelerate.

Insider Activity at Applied Materials

In related news, Director Judy Bruner sold 3,969 shares of the stock in a transaction dated Monday, February 23rd. The shares were sold at an average price of $377.02, for a total value of $1,496,392.38. Following the completion of the transaction, the director owned 28,589 shares of the company's stock, valued at approximately $10,778,624.78. This trade represents a 12.19% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CFO Brice Hill sold 5,000 shares of the business's stock in a transaction on Tuesday, February 17th. The shares were sold at an average price of $361.21, for a total value of $1,806,050.00. Following the transaction, the chief financial officer owned 138,565 shares of the company's stock, valued at approximately $50,051,063.65. The trade was a 3.48% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 12,003 shares of company stock valued at $4,484,189. 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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