Delphi Management Inc. MA Reduces Stake in Applied Materials, Inc. $AMAT

Key Points

• Delphi Management Inc. MA reduced its Applied Materials stake by 33.3% in the first quarter, selling 1,779 shares and leaving it with 3,561 shares worth about $1.217 million.
• Applied Materials posted better-than-expected quarterly results, with EPS of $2.86 versus $2.68 expected and revenue of $7.91 billion versus $7.68 billion expected; revenue rose 11.4% year over year.
• Analysts remain generally bullish, with several firms raising price targets on AMAT amid AI-driven semiconductor demand, though some commentary warns the stock’s valuation may be stretched after its strong rally.

Delphi Management Inc. MA cut its position in shares of Applied Materials, Inc. (NASDAQ:AMAT - Free Report) by 33.3% in the 1st quarter, according to the company in its most recent disclosure with the SEC. The fund owned 3,561 shares of the manufacturing equipment provider's stock after selling 1,779 shares during the quarter. Applied Materials accounts for 1.5% of Delphi Management Inc. MA's investment portfolio, making the stock its 23rd biggest holding. Delphi Management Inc. MA's holdings in Applied Materials were worth $1,217,000 at the end of the most recent quarter.

Other institutional investors also recently bought and sold shares of the company. Capital Research Global Investors increased its position in shares of Applied Materials by 119.8% in the fourth quarter. Capital Research Global Investors now owns 32,707,049 shares of the manufacturing equipment provider's stock valued at $8,405,458,000 after buying an additional 17,829,377 shares in the last quarter. Norges Bank purchased a new stake in shares of Applied Materials in the 4th quarter worth about $2,858,543,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its position in shares of 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 buying an additional 7,856,576 shares in the last quarter. Ameriprise Financial Inc. grew its stake in Applied Materials by 40.1% in the 3rd quarter. Ameriprise Financial Inc. now owns 12,520,114 shares of the manufacturing equipment provider's stock valued at $2,563,376,000 after acquiring an additional 3,583,751 shares during the last quarter. Finally, Auto Owners Insurance Co grew its stake in Applied Materials by 25,824.4% in the 4th quarter. Auto Owners Insurance Co now owns 3,370,167 shares of the manufacturing equipment provider's stock valued at $86,610,000 after acquiring an additional 3,357,167 shares during the last quarter. 80.56% of the stock is currently owned by hedge funds and other institutional investors.

Applied Materials Price Performance

Applied Materials stock opened at $586.54 on Thursday. Applied Materials, Inc. has a 12-month low of $154.46 and a 12-month high of $641.18. The stock has a market capitalization of $465.69 billion, a P/E ratio of 55.07, a P/E/G ratio of 1.63 and a beta of 1.67. The firm's 50-day moving average is $463.44 and its two-hundred day moving average is $372.78. The company has a debt-to-equity ratio of 0.22, a current ratio of 2.51 and a quick ratio of 1.80.

Applied Materials (NASDAQ:AMAT - Get Free Report) last posted its quarterly earnings data on Thursday, May 14th. The manufacturing equipment provider reported $2.86 earnings per share for the quarter, beating analysts' consensus estimates of $2.68 by $0.18. The business had revenue of $7.91 billion during the quarter, compared to analyst estimates of $7.68 billion. Applied Materials had a net margin of 29.31% and a return on equity of 36.97%. The company's revenue was up 11.4% on a year-over-year basis. During the same quarter in the previous year, the business posted $2.39 earnings per share. Applied Materials has set its Q3 2026 guidance at 3.160-3.560 EPS. Equities analysts predict that Applied Materials, Inc. will post 12.1 earnings per share for the current year.

Applied Materials Announces Dividend

The company 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 annualized dividend and a yield of 0.4%. The ex-dividend date of this dividend is Thursday, August 20th. Applied Materials's payout ratio is presently 19.91%.

Analyst Ratings Changes

A number of brokerages have issued reports on AMAT. B. Riley Financial lifted their target price on shares of Applied Materials from $530.00 to $550.00 and gave the stock a "buy" rating in a research report on Friday, May 15th. Citigroup increased their price target on shares of Applied Materials from $550.00 to $710.00 and gave the company a "buy" rating in a research report on Wednesday, June 17th. Susquehanna raised their price objective on shares of Applied Materials from $435.00 to $500.00 and gave the stock a "positive" rating in a research note on Thursday, April 9th. Stifel Nicolaus set a $530.00 price objective on Applied Materials in a research report on Friday, May 15th. Finally, Morgan Stanley reaffirmed an "equal weight" rating and issued a $502.00 target price (up from $454.00) on shares of Applied Materials in a research note on Friday, May 15th. Twenty-seven investment analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the company. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of $501.26.

Applied Materials News Roundup

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

• Positive Sentiment: Wells Fargo lifted its price target on Applied Materials to $715 from $520 and kept an Overweight rating, citing continued strength in semiconductor capital equipment demand and AI infrastructure spending. Is Applied Materials (AMAT) the Best All-Time High Stock with Legs to Rally Further?
• Positive Sentiment: Bank of America also raised its price target on AMAT to $720 from $540 and reiterated a Buy rating, suggesting analysts see additional upside from AI-led chip demand. Applied Materials price target raised by Bank of America
• Positive Sentiment: Recent coverage highlighted Applied Materials as a potential winner from growing semiconductor complexity and AI chip production, with some commentary arguing the stock may still be undervalued relative to long-term growth prospects. How Applied Materials Could Become the Next $1 Trillion Chip Stock
• Neutral Sentiment: Insider Prabu G. Raja sold 10,000 shares, a transaction that may get attention but does not necessarily signal a change in the company’s outlook. SEC Form 4 filing
• Neutral Sentiment: Applied Materials announced a quarterly dividend of $0.53 per share, which is supportive for income-focused investors but not a major short-term catalyst. Applied Materials insider trades and dividend announcement
• Negative Sentiment: Some recent articles noted that AMAT’s valuation has become stretched after a strong rally, which could limit near-term upside if AI spending expectations ease. Applied Materials Stock Looks Pricey—Can AI Demand Justify the Rally?

Insider Buying and Selling

In other news, insider Prabu G. Raja sold 50,000 shares of the firm'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 sale, the insider owned 356,642 shares in the company, valued at $180,204,069.76. This trade represents a 12.30% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, SVP Omkaram Nalamasu sold 24,263 shares of Applied Materials stock in a transaction on Tuesday, June 16th. The shares were sold at an average price of $593.43, for a total value of $14,398,392.09. Following the completion of the sale, the senior vice president directly owned 146,916 shares of the company's stock, valued at approximately $87,184,361.88. This represents a 14.17% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 199,767 shares of company stock worth $114,104,709 in the last three months. 0.30% of the stock is currently owned by insiders.

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.

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