Envestnet Portfolio Solutions Inc. Trims Holdings in Applied Materials, Inc. $AMAT

Key Points

• Envestnet Portfolio Solutions cut its Applied Materials position by 27.6% in the second quarter, selling 24,026 shares and retaining 62,962 shares valued at approximately $45.5 million. Institutional investors collectively own 80.56% of AMAT.
• Applied Materials reported quarterly EPS of $3.50 and revenue of $9.12 billion, exceeding analyst estimates, while revenue increased 24.8% year over year. The company also announced a quarterly dividend of $0.53 per share, representing a 0.4% yield.
• Analyst sentiment remains positive, with a consensus “Moderate Buy” rating and an average price target of $658.45, although some commentary cautions that AMAT’s premium valuation could be vulnerable to a downturn in semiconductor-equipment spending.

Envestnet Portfolio Solutions Inc. reduced its position in shares of Applied Materials, Inc. (NASDAQ:AMAT - Free Report) by 27.6% during the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 62,962 shares of the manufacturing equipment provider's stock after selling 24,026 shares during the period. Envestnet Portfolio Solutions Inc.'s holdings in Applied Materials were worth $45,521,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also modified their holdings of AMAT. Cornerstone Financial Management LLC purchased a new position in Applied Materials during the fourth quarter worth about $25,000. Harborfront Financial Group LLC purchased a new stake in Applied Materials in the 2nd quarter valued at about $27,000. Financial Freedom LLC purchased a new stake in Applied Materials in the 1st quarter valued at about $28,000. Orion Capital Management LLC acquired a new position in shares of Applied Materials during the 2nd quarter valued at about $33,000. Finally, Highland Investment Advisors LLC acquired a new position in shares of Applied Materials during the 2nd quarter valued at about $33,000. 80.56% of the stock is currently owned by hedge funds and other institutional investors.

Applied Materials Trading Up 0.4%

AMAT traded up $1.92 on Wednesday, reaching $474.38. 4,583,769 shares of the company's stock were exchanged, compared to its average volume of 8,032,118. The company's 50 day moving average is $493.48 and its 200-day moving average is $467.79. The company has a market cap of $376.47 billion, a price-to-earnings ratio of 40.89, a PEG ratio of 1.29 and a beta of 1.60. Applied Materials, Inc. has a twelve month low of $196.20 and a twelve month high of $739.67. The company has a debt-to-equity ratio of 0.20, a quick ratio of 1.79 and a current ratio of 2.42.

Applied Materials (NASDAQ:AMAT - Get Free Report) last released its quarterly earnings data 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. 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 the consensus estimate of $8.99 billion. During the same period in the previous year, the firm earned $2.48 earnings per share. Applied Materials's revenue for the quarter was up 24.8% on a year-over-year basis. Applied Materials has set its Q4 2026 guidance at 3.820-4.220 EPS. Equities analysts predict that Applied Materials, Inc. will post 12.78 earnings per share for the current year.

Applied Materials Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Thursday, November 19th will be paid a $0.53 dividend. The ex-dividend date is Thursday, November 19th. This represents a $2.12 dividend on an annualized basis and a dividend yield of 0.4%. Applied Materials's dividend payout ratio (DPR) is 18.28%.

More Applied Materials News

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

• Positive Sentiment: Bank of America reportedly raised its semiconductor-equipment spending outlook as demand accelerates for AI chips, memory and advanced packaging. Applied Materials is positioned to benefit from increased spending by chip manufacturers. 3 Top Chip Equipment Stocks to Buy as AI Demand Fuels BofA Optimism
• Positive Sentiment: Analyst commentary remains constructive, including a reported rating upgrade and optimism from Wall Street analysts. This may reinforce the view that AMAT’s recent weakness offers a buying opportunity. Applied Materials: Opportunity Is Brewing Again (Rating Upgrade) Wall Street Bulls Look Optimistic About Applied Materials
• Positive Sentiment: Applied Materials and Lam Research are highlighted as “picks-and-shovels” beneficiaries of AI because their equipment is required to manufacture advanced chips. A new ETF focused on AI-chipmaking machinery could also increase visibility and investor interest in the group. Nvidia and AMD Get the Headlines. The Real AI Winners Might Be Applied Materials and Lam Research New ETF Bets on the Machinery Behind AI Chipmaking
• Positive Sentiment: The company’s planned $5 billion, decade-long investment in India expands its research, supply-chain and workforce presence in a market seeking to build a domestic semiconductor industry. The move could create longer-term growth opportunities. Applied Materials Commits $5 Billion to India as Chip Manufacturing Expands
• Neutral Sentiment: Options pricing implies a wide potential trading range for AMAT over the next year, reflecting substantial uncertainty but not signaling a particular direction. How Far Can Applied Materials Stock Move On You In A Year?
• Negative Sentiment: Despite strong momentum and AI exposure, some commentary warns that the semiconductor-equipment cycle could turn lower. AMAT’s premium valuation makes the stock vulnerable if factory spending or growth expectations weaken. Its services business, including Applied Global Services, provides some diversification and recently grew strongly. Applied Materials: Momentum Says Up; The Cycle Says Down What Are AMAT Stock Bears Missing?

Wall Street Analyst Weigh In

Several research analysts have recently weighed in on the stock. Truist Financial set a $575.00 price objective on shares of Applied Materials in a report on Thursday, May 28th. JPMorgan Chase & Co. boosted their target price on shares of Applied Materials from $515.00 to $660.00 and gave the company an "overweight" rating in a report on Friday, August 14th. Sanford C. Bernstein upped their price target on shares of Applied Materials from $675.00 to $700.00 and gave the stock an "outperform" rating in a research report on Friday, August 14th. Mizuho cut their price target on shares of Applied Materials from $650.00 to $590.00 and set an "outperform" rating on the stock in a research note on Tuesday, August 25th. Finally, TD Cowen reiterated a "buy" rating and issued a $700.00 price target on shares of Applied Materials in a report on Friday, August 14th. One research analyst has rated the stock with a Strong Buy rating, twenty-seven have given a Buy rating and five have issued a Hold rating to the stock. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $658.45.

Insider Activity

In related news, CFO Brice Hill sold 7,500 shares of the firm's stock in a transaction dated Tuesday, August 25th. The stock was sold at an average price of $479.25, for a total transaction of $3,594,375.00. Following the sale, the chief financial officer directly owned 128,613 shares in the company, valued at approximately $61,637,780.25. This trade represents a 5.51% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, Director Judy Bruner sold 1,000 shares of the business's stock in a transaction that occurred on Tuesday, September 8th. The stock was sold at an average price of $465.00, for a total value of $465,000.00. Following the transaction, the director directly owned 25,544 shares in the company, valued at $11,877,960. This trade represents a 3.77% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders sold 86,821 shares of company stock worth $59,609,471. 0.30% of the stock is currently owned by corporate insiders.

Applied Materials Profile

Applied Materials, Inc is a global provider of materials engineering solutions used to manufacture semiconductors, displays and other advanced electronic products. The company develops and supplies equipment, services and software that help customers build and improve the performance of chips and display panels.

Its semiconductor products support processes including deposition, etch, patterning, inspection, metrology and materials modification. Applied Materials also provides equipment and services for display manufacturing, including technologies used in producing liquid-crystal and organic light-emitting diode displays, as well as solutions for adjacent markets such as solar and other specialty applications.

Founded in 1967 and headquartered in Santa Clara, California, Applied Materials serves semiconductor and display manufacturers worldwide through operations, customer-support centers and research and development activities across major technology-producing regions.

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