First Dallas Securities Inc. Makes New Investment in Applied Materials, Inc. $AMAT

Key Points

• First Dallas Securities opened a new position in Applied Materials, buying 4,175 shares valued at about $1.43 million in the first quarter.
• Wall Street remains broadly bullish on AMAT, with multiple firms raising targets and the stock carrying a consensus “Moderate Buy” rating and average price target of $553.56.
• Applied Materials reported stronger-than-expected quarterly results, including $2.86 EPS and $7.91 billion in revenue, while also boosting optimism around AI-driven semiconductor demand; however, recent insider sales and valuation concerns may temper sentiment.

First Dallas Securities Inc. bought a new position in shares of Applied Materials, Inc. (NASDAQ:AMAT - Free Report) during the 1st quarter, according to its most recent 13F filing with the SEC. The fund bought 4,175 shares of the manufacturing equipment provider's stock, valued at approximately $1,427,000.

A number of other institutional investors and hedge funds have also made changes to their positions in AMAT. Cornerstone Financial Management LLC acquired a new position in Applied Materials during the fourth quarter worth about $25,000. Wilkerson Advisory Group LLC acquired a new stake in shares of Applied Materials during the 4th quarter valued at approximately $26,000. Highline Wealth Partners LLC lifted its position in shares of Applied Materials by 48.7% during the 4th quarter. Highline Wealth Partners LLC now owns 116 shares of the manufacturing equipment provider's stock valued at $30,000 after acquiring an additional 38 shares during the period. Joseph Group Capital Management purchased a new stake in shares of Applied Materials during the 4th quarter worth approximately $31,000. Finally, Dogwood Wealth Management LLC grew its holdings in shares of Applied Materials by 52.4% in the 4th quarter. Dogwood Wealth Management LLC now owns 128 shares of the manufacturing equipment provider's stock worth $33,000 after acquiring an additional 44 shares during the period. 80.56% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

Several equities analysts recently issued reports on the company. HSBC started coverage on Applied Materials in a report on Friday, May 8th. They set a "buy" rating and a $517.00 price objective for the company. JPMorgan Chase & Co. upped their target price on Applied Materials from $400.00 to $515.00 and gave the company an "overweight" rating in a report on Friday, May 15th. Seaport Research Partners began coverage on Applied Materials in a research report on Monday, May 4th. They issued a "buy" rating and a $500.00 price target for the company. Truist Financial set a $575.00 price target on Applied Materials in a research note on Thursday, May 28th. Finally, Sanford C. Bernstein reiterated an "outperform" rating and issued a $525.00 price objective on shares of Applied Materials in a research report on Friday, May 15th. One investment analyst has rated the stock with a Strong Buy rating, twenty-seven have given a Buy rating and seven have issued a Hold rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $553.56.

Key Headlines Impacting Applied Materials

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

• Positive Sentiment: Analysts remain broadly bullish on Applied Materials, with Zacks upgrading the stock to strong-buy and other recent research highlighting AMAT as a key beneficiary of the AI semiconductor equipment cycle. Article Title
• Positive Sentiment: Recent coverage says Applied Materials is benefiting from accelerating growth in AI-related chip demand, with record earnings momentum and a new Street-high target reinforcing the bull case. Article Title
• Positive Sentiment: Applied Materials also discussed DRAM and advanced packaging innovations tied to AI-driven semiconductor growth, which supports the view that its product mix remains well positioned for the current cycle. Article Title
• Neutral Sentiment: Some articles question whether AMAT is becoming too expensive after its rally, suggesting valuation concerns could limit upside if growth expectations cool. Article Title
• Neutral Sentiment: Michael Burry reportedly added to short bets against Applied Materials and other chip names, adding a bearish sentiment overlay on the semiconductor sector. Article Title
• Negative Sentiment: Applied Materials CEO Gary Dickerson disclosed two recent stock sales totaling more than 78,000 shares, which can weigh on investor sentiment even though he still owns a large position. Article Title
• Negative Sentiment: Semiconductor stocks, including AMAT, also came under pressure in broader sector selloffs as investors worried that AI-driven chip demand may be cooling and took profits after a strong rally. Article Title

Insider Buying and Selling

In related news, Director Thomas J. Iannotti sold 9,250 shares of the company's stock in a transaction that occurred on Tuesday, June 16th. The shares were sold at an average price of $599.77, for a total transaction of $5,547,872.50. Following the transaction, the director owned 40,559 shares of the company's stock, valued at approximately $24,326,071.43. This represents a 18.57% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, insider Prabu G. Raja sold 50,000 shares of the firm's stock in a transaction that occurred 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 approximately $180,204,069.76. This trade represents a 12.30% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 278,088 shares of company stock worth $169,654,805 in the last 90 days. 0.30% of the stock is currently owned by corporate insiders.

Applied Materials Price Performance

AMAT stock opened at $603.04 on Friday. The stock's 50 day moving average price is $499.51 and its 200 day moving average price is $390.89. The firm has a market cap of $478.79 billion, a P/E ratio of 56.62, a PEG ratio of 1.68 and a beta of 1.57. The company has a debt-to-equity ratio of 0.22, a quick ratio of 1.80 and a current ratio of 2.51. Applied Materials, Inc. has a 1 year low of $154.46 and a 1 year high of $739.67.

Applied Materials (NASDAQ:AMAT - Get Free Report) last released its quarterly earnings results on Thursday, May 14th. The manufacturing equipment provider reported $2.86 earnings per share for the quarter, topping the consensus estimate of $2.68 by $0.18. Applied Materials had a return on equity of 36.97% and a net margin of 29.31%.The company had revenue of $7.91 billion during the quarter, compared to the consensus estimate of $7.68 billion. During the same quarter last year, the business posted $2.39 earnings per share. Applied Materials's revenue was up 11.4% compared to the same quarter last year. Applied Materials has set its Q3 2026 guidance at 3.160-3.560 EPS. On average, sell-side analysts expect that Applied Materials, Inc. will post 12.11 earnings per share for the current fiscal year.

Applied Materials Dividend Announcement

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 issued a $0.53 dividend. This represents a $2.12 dividend on an annualized basis and a yield of 0.4%. The ex-dividend date is Thursday, August 20th. Applied Materials's dividend payout ratio is 19.91%.

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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