Donaldson Capital Management LLC Makes New $3.28 Million Investment in Applied Materials, Inc. $AMAT

Key Points

• Donaldson Capital Management purchased 4,536 Applied Materials shares worth approximately $3.28 million, while institutional investors collectively own 80.56% of the company.
• Analysts maintain a broadly positive outlook, with a consensus “Moderate Buy” rating and an average price target of $640.17; recent targets range from $605 to $750.
• Applied Materials reported strong quarterly results, including 24.8% year-over-year revenue growth to $9.12 billion and adjusted EPS of $3.50, though insiders sold roughly $169.7 million of stock over the past three months.

Donaldson Capital Management LLC purchased a new stake in Applied Materials, Inc. (NASDAQ:AMAT - Free Report) in the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor purchased 4,536 shares of the manufacturing equipment provider's stock, valued at approximately $3,280,000.

Several other large investors have also recently modified their holdings of AMAT. JFS Wealth Advisors LLC grew its stake in shares of Applied Materials by 4.3% in the second quarter. JFS Wealth Advisors LLC now owns 409 shares of the manufacturing equipment provider's stock worth $296,000 after purchasing an additional 17 shares during the last quarter. Innovative Asset Advisors Group LLC increased its holdings in Applied Materials by 2.1% in the second quarter. Innovative Asset Advisors Group LLC now owns 961 shares of the manufacturing equipment provider's stock valued at $695,000 after purchasing an additional 20 shares during the period. Stonebridge Financial Group LLC raised its position in Applied Materials by 2.1% during the 2nd quarter. Stonebridge Financial Group LLC now owns 1,003 shares of the manufacturing equipment provider's stock worth $725,000 after purchasing an additional 21 shares during the last quarter. Basecamp Wealth Advisors LLC lifted its holdings in Applied Materials by 0.7% during the 1st quarter. Basecamp Wealth Advisors LLC now owns 3,288 shares of the manufacturing equipment provider's stock worth $1,124,000 after buying an additional 22 shares during the period. Finally, Financial Management Professionals Inc. lifted its holdings in Applied Materials by 2.2% during the 2nd quarter. Financial Management Professionals Inc. now owns 1,040 shares of the manufacturing equipment provider's stock worth $752,000 after buying an additional 22 shares during the period. Institutional investors own 80.56% of the company's stock.

Analysts Set New Price Targets

AMAT has been the topic of a number of analyst reports. Cantor Fitzgerald reiterated an "overweight" rating on shares of Applied Materials in a research report on Friday. Needham & Company LLC restated a "buy" rating and set a $740.00 price objective on shares of Applied Materials in a research report on Friday. Deutsche Bank Aktiengesellschaft reaffirmed a "buy" rating and issued a $605.00 price objective on shares of Applied Materials in a research note on Friday. Morgan Stanley reduced their target price on Applied Materials from $646.00 to $642.00 and set an "equal weight" rating on the stock in a report on Friday. Finally, KeyCorp increased their target price on shares of Applied Materials from $550.00 to $750.00 and gave the company 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 six have issued a Hold rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $640.17.

Insider Activity

In other news, SVP Omkaram Nalamasu sold 24,263 shares of the business's stock in a transaction dated Tuesday, June 16th. The shares were sold at an average price of $593.43, for a total transaction 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 $87,184,361.88. The trade was a 14.17% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Thomas J. Iannotti sold 9,250 shares of the company's 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 completion of the sale, the director owned 40,559 shares in the company, valued at $24,326,071.43. This represents a 18.57% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 278,088 shares of company stock valued at $169,654,805. 0.30% of the stock is currently owned by insiders.

Applied Materials News Roundup

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

• Positive Sentiment: Applied Materials reported fiscal third-quarter revenue of approximately $9.12 billion, up 24.8% year over year, while adjusted earnings of $3.50 per share exceeded consensus estimates. Management’s fiscal fourth-quarter revenue outlook of roughly $10.25 billion was also well above analyst expectations, signaling continued momentum. AMAT Q2 Deep Dive: AI Demand and Advanced Packaging Drive Guidance Upside, Market Reacts Cautiously
• Positive Sentiment: Several analysts remained constructive: B. Riley and Needham reiterated buy ratings, while price targets were raised to $600 and $660. These revisions reflect confidence in Applied Materials’ earnings growth and exposure to AI-related chip manufacturing. Applied Materials' Buy Rating Reiterated at B. Riley Financial Applied Materials Price Target Raised to $600 Applied Materials Price Target Raised to $660
• Positive Sentiment: Investment commentary highlights AMAT as a potential beneficiary of the AI-driven memory surge. Higher memory spending and advanced semiconductor production could support equipment demand beyond the current earnings cycle. Why Applied Materials Could Be a Major Winner of the AI Memory Surge
• Neutral Sentiment: Market coverage characterizes the earnings report as fundamentally strong but notes that investors reacted cautiously, implying that much of the growth may already be reflected in the share price. Applied Materials: When Beating Wall Street Numbers Isn't Enough
• Negative Sentiment: Despite record results and guidance, AMAT remains more than 25% below its 52-week high and trades at a premium earnings multiple. That valuation raises the risk of profit-taking or disappointment if AI and memory spending slows. Applied Materials Trades More Than 25% Below Its High With Revenue at a Record

Applied Materials Price Performance

Shares of NASDAQ:AMAT opened at $535.31 on Tuesday. Applied Materials, Inc. has a twelve month low of $154.46 and a twelve month high of $739.67. The stock's 50 day moving average is $565.01 and its 200-day moving average is $447.20. The company has a quick ratio of 1.79, a current ratio of 2.42 and a debt-to-equity ratio of 0.20. The firm has a market capitalization of $425.01 billion, a price-to-earnings ratio of 46.15, a PEG ratio of 1.25 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, beating the consensus estimate of $3.40 by $0.10. The business had revenue of $9.12 billion during 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%. Applied Materials's revenue was up 24.8% compared to the same quarter last year. During the same quarter last year, the firm posted $2.48 EPS. Applied Materials has set its Q4 2026 guidance at 3.820-4.220 EPS. Sell-side analysts forecast that Applied Materials, Inc. will post 12.48 EPS for the current fiscal year.

Applied Materials Dividend Announcement

The firm also recently disclosed 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 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.

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