E Fund Management Co. Ltd. Buys 60,951 Shares of Applied Materials, Inc. $AMAT

Key Points

• E Fund Management more than doubled its Applied Materials stake in the second quarter, purchasing 60,951 additional shares to hold 113,843 shares valued at approximately $82.3 million.
• Applied Materials reported strong fiscal third-quarter results, with revenue rising 24.8% year over year to a record $9.12 billion and EPS of $3.50, exceeding analyst expectations.
• Analysts remain broadly bullish, with a consensus “Moderate Buy” rating and a $659.83 target price, although valuation concerns and bearish positioning from prominent investors are weighing on sentiment.

E Fund Management Co. Ltd. boosted its position in shares of Applied Materials, Inc. (NASDAQ:AMAT - Free Report) by 115.2% during the 2nd quarter, according to the company in its most recent filing with the SEC. The institutional investor owned 113,843 shares of the manufacturing equipment provider's stock after buying an additional 60,951 shares during the quarter. Applied Materials makes up approximately 1.8% of E Fund Management Co. Ltd.'s holdings, making the stock its 16th largest holding. E Fund Management Co. Ltd.'s holdings in Applied Materials were worth $82,308,000 as of its most recent filing with the SEC.

Other hedge funds have also recently bought and sold shares of the company. Cornerstone Financial Management LLC bought a new stake in shares of Applied Materials during the fourth quarter worth $25,000. Wilkerson Advisory Group LLC bought a new position in Applied Materials in the fourth quarter valued at about $26,000. Harborfront Financial Group LLC bought a new position in Applied Materials in the second quarter valued at about $27,000. Financial Freedom LLC acquired a new stake in Applied Materials in the first quarter worth about $28,000. Finally, Joseph Group Capital Management acquired a new stake in Applied Materials in the fourth quarter worth about $31,000. 80.56% of the stock is currently owned by institutional investors.

Applied Materials News Roundup

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

• Positive Sentiment: AI demand supports the long-term outlook. JPMorgan reiterated an Overweight rating and estimates semiconductor-systems revenue could grow about 40% this year, with AI-related investment accounting for roughly 80% of chip-equipment demand. Applied Materials Sees Years Of AI-Fueled Growth Ahead
• Positive Sentiment: Advanced packaging and memory opportunities remain catalysts. New equipment launches are strengthening Applied Materials’ position in advanced packaging as demand for high-bandwidth memory (HBM) and semiconductor manufacturing capacity expands. Can Applied Materials Sustain Its Growth Amid AI-Driven Demand?
• Positive Sentiment: Brokerage coverage remains favorable. Berenberg issued a Buy rating, while broader analyst recommendations continue to point toward adding AMAT to portfolios. However, investors should note that consensus ratings can be overly optimistic because they are based on sell-side opinions. Applied Materials Receives a Buy from Berenberg Bank
• Neutral Sentiment: Fundamentals were stronger than expected, but the market response was weak. Applied Materials reported record fiscal third-quarter revenue of $9.12 billion, up 25% year over year, and exceeded consensus EPS and revenue estimates. Its above-consensus outlook was apparently insufficient to overcome high expectations and valuation concerns. Applied Materials Delivered a Record Quarter. The Stock Fell Anyway
• Negative Sentiment: High-profile bearish positioning is weighing on sentiment. Paul Tudor Jones reportedly liquidated his AMAT common-stock position and increased his put exposure, while Dr. Michael Burry is also betting against the shares. These trades raise concerns about semiconductor-cycle risks and whether future foundry capital spending will meet already elevated expectations. Paul Tudor Jones Liquidated His Applied Materials Stake

Applied Materials Trading Down 0.8%

NASDAQ:AMAT opened at $492.32 on Friday. The company has a current ratio of 2.42, a quick ratio of 1.79 and a debt-to-equity ratio of 0.20. Applied Materials, Inc. has a 1-year low of $154.46 and a 1-year high of $739.67. The firm has a market capitalization of $390.88 billion, a price-to-earnings ratio of 42.44, a PEG ratio of 1.06 and a beta of 1.61. The business's 50-day moving average price is $562.67 and its two-hundred day moving average price is $451.05.

Applied Materials (NASDAQ:AMAT - Get Free Report) last posted its earnings results on Thursday, August 13th. The manufacturing equipment provider reported $3.50 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.40 by $0.10. The company had revenue of $9.12 billion during the quarter, compared to analyst estimates of $8.99 billion. Applied Materials had a return on equity of 38.02% and a net margin of 30.05%.The company's revenue for the quarter was up 24.8% compared to the same quarter last year. During the same period in the previous year, the company earned $2.48 EPS. Applied Materials has set its Q4 2026 guidance at 3.820-4.220 EPS. On average, equities analysts expect that Applied Materials, Inc. will post 12.73 earnings per share for the current year.

Applied Materials Dividend Announcement

The company also recently disclosed 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. The ex-dividend date is Thursday, August 20th. This represents a $2.12 dividend on an annualized basis and a yield of 0.4%. Applied Materials's payout ratio is currently 18.28%.

Analyst Upgrades and Downgrades

A number of research analysts have issued reports on the stock. The Goldman Sachs Group restated a "buy" rating and set a $645.00 target price on shares of Applied Materials in a research report on Monday, August 3rd. Stifel Nicolaus lifted their price target on shares of Applied Materials from $530.00 to $650.00 and gave the stock a "buy" rating in a research report on Friday, July 10th. Jefferies Financial Group boosted their price target on shares of Applied Materials from $510.00 to $770.00 and gave the stock a "buy" rating in a research note on Friday, June 26th. Craig Hallum increased their price objective on shares of Applied Materials from $530.00 to $585.00 and gave the company a "buy" rating in a report on Friday, August 14th. Finally, Bank of America reduced their price objective on shares of Applied Materials from $720.00 to $650.00 and set a "buy" rating on the stock in a research note on Friday, August 14th. One investment analyst has rated the stock with a Strong Buy rating, twenty-seven have assigned a Buy rating and five have assigned a Hold rating to the stock. According to data from MarketBeat.com, Applied Materials has a consensus rating of "Moderate Buy" and a consensus target price of $659.83.

Insider Transactions at Applied Materials

In other Applied Materials news, CEO Gary E. Dickerson sold 20,000 shares of the company's stock in a transaction that occurred on Tuesday, June 30th. The shares were sold at an average price of $735.22, for a total value of $14,704,400.00. Following the completion of the sale, the chief executive officer owned 1,599,843 shares of the company's stock, valued at approximately $1,176,236,570.46. This represents a 1.23% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Prabu G. Raja sold 10,000 shares of the stock in a transaction 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 completion of the sale, the insider owned 346,642 shares in the company, valued at approximately $219,608,106.26. This trade represents a 2.80% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 277,820 shares of company stock valued at $169,538,434. Corporate insiders own 0.30% of the company's stock.

Applied Materials Company 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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