Formidable Asset Management LLC Reduces Position in Applied Materials, Inc. $AMAT

Key Points

• Formidable Asset Management LLC cut its Applied Materials stake by 49.4% in the first quarter, leaving it with 4,588 shares valued at about $1.57 million.
• Applied Materials has been seeing constructive analyst sentiment, with several firms raising price targets and the stock carrying a consensus rating of Moderate Buy and an average target of $518.19.
• The company posted better-than-expected quarterly results, including EPS of $2.86 and revenue of $7.91 billion, while also highlighting new systems for DRAM and advanced packaging tied to AI chip demand.

Formidable Asset Management LLC decreased its position in Applied Materials, Inc. (NASDAQ:AMAT - Free Report) by 49.4% during the 1st quarter, according to its most recent disclosure with the SEC. The fund owned 4,588 shares of the manufacturing equipment provider's stock after selling 4,485 shares during the period. Formidable Asset Management LLC's holdings in Applied Materials were worth $1,568,000 as of its most recent SEC filing.

Other hedge funds also recently made changes to their positions in the company. Cornerstone Financial Management LLC bought a new stake in Applied Materials in the 4th quarter worth $25,000. Wilkerson Advisory Group LLC purchased a new position in shares of Applied Materials in the fourth quarter valued at about $26,000. Highline Wealth Partners LLC raised its stake in shares of Applied Materials by 48.7% during the fourth 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 last quarter. Joseph Group Capital Management bought a new position in shares of Applied Materials during the fourth quarter valued at about $31,000. Finally, Dogwood Wealth Management LLC boosted its holdings in shares of Applied Materials by 52.4% during the fourth quarter. Dogwood Wealth Management LLC now owns 128 shares of the manufacturing equipment provider's stock worth $33,000 after purchasing an additional 44 shares during the period. 80.56% of the stock is owned by hedge funds and other institutional investors.

Applied Materials News Summary

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

• Positive Sentiment: Applied Materials introduced new systems for DRAM and advanced packaging, expanding its role in AI chip manufacturing and potentially boosting future demand. Applied Materials Introduces New Systems to Accelerate DRAM and Advanced Packaging for AI Chips
• Positive Sentiment: Analysts said AMAT’s event highlighted strong opportunities in DRAM and advanced packaging, reinforcing the company’s AI-driven growth narrative. Applied Materials' event focuses on DRAM, and advanced packaging: analysts
• Positive Sentiment: Wall Street commentary remains constructive, with analysts still confident in Applied Materials’ strong competitive position. AMAT stock gets thumbs up from Wall Street – analysts remain confident about Applied Materials’ strong market position
• Neutral Sentiment: Some coverage suggests the stock may be looking expensive after its recent rally, which could limit near-term upside even if the long-term AI story stays intact. Applied Materials stock looks pricey—can AI demand justify the rally?
• Neutral Sentiment: One analysis noted that Applied Materials’ aggressive investment strategy may pressure cash flow in the near term, even though it supports longer-term growth. Can AMAT's Investment Strategy Lift Future Cash Flow Growth?

Analyst Upgrades and Downgrades

Several research firms recently issued reports on AMAT. Morgan Stanley reissued 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. KeyCorp upped their price target on Applied Materials from $450.00 to $550.00 and gave the company an "overweight" rating in a research report on Friday, May 15th. Wolfe Research increased their price objective on Applied Materials from $500.00 to $550.00 and gave the stock an "outperform" rating in a report on Friday, May 15th. Zacks Research lowered Applied Materials from a "strong-buy" rating to a "hold" rating in a research report on Monday, April 27th. Finally, Truist Financial set a $575.00 target price on Applied Materials in a research note on Thursday, May 28th. Twenty-seven investment analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the company. According to data from MarketBeat.com, Applied Materials currently has a consensus rating of "Moderate Buy" and a consensus price target of $518.19.

Applied Materials Price Performance

Shares of NASDAQ AMAT opened at $626.84 on Monday. Applied Materials, Inc. has a 1 year low of $154.46 and a 1 year high of $669.22. The stock has a market capitalization of $497.69 billion, a P/E ratio of 58.86, a P/E/G ratio of 1.74 and a beta of 1.67. The company's 50-day moving average is $473.54 and its 200 day moving average is $378.12. 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 issued its quarterly earnings data on Thursday, May 14th. The manufacturing equipment provider reported $2.86 EPS for the quarter, topping the consensus estimate 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%. Applied Materials's quarterly revenue was up 11.4% compared to the same quarter last year. During the same period last year, the business posted $2.39 earnings per share. 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 12.1 earnings per share for the current year.

Applied Materials Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders 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 0.3%. The ex-dividend date is Thursday, August 20th. Applied Materials's dividend payout ratio (DPR) is presently 19.91%.

Insider Buying and Selling

In related news, SVP Timothy M. Deane sold 8,621 shares of the company's stock in a transaction on Monday, June 15th. The stock was sold at an average price of $590.76, for a total value of $5,092,941.96. Following the sale, the senior vice president directly owned 134,631 shares of the company's stock, valued at $79,534,609.56. This represents a 6.02% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider Prabu G. Raja sold 50,000 shares of the stock in a transaction on Thursday, June 4th. The stock was sold at an average price of $505.28, for a total value of $25,264,000.00. Following the completion of the transaction, the insider owned 356,642 shares of the company's stock, valued at approximately $180,204,069.76. This trade represents a 12.30% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 199,767 shares of company stock worth $114,104,709 over the last quarter. Company insiders own 0.30% of the company's stock.

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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