Franklin Resources Inc. Lowers Stake in Applied Materials, Inc. $AMAT

Key Points

• Franklin Resources cut its Applied Materials stake by 5.8% in the fourth quarter, selling 197,034 shares and leaving it with 3.18 million shares valued at about $817.5 million.
• Applied Materials reported strong quarterly results, with EPS of $2.86 beating estimates and revenue of $7.91 billion topping expectations; revenue rose 11.4% year over year.
• The company raised its quarterly dividend to $0.53 per share from $0.46, while analysts remain broadly bullish with 27 Buy ratings and an average target price of $470.13.

Franklin Resources Inc. reduced its holdings in shares of Applied Materials, Inc. (NASDAQ:AMAT - Free Report) by 5.8% in the fourth quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 3,180,883 shares of the manufacturing equipment provider's stock after selling 197,034 shares during the period. Franklin Resources Inc. owned 0.40% of Applied Materials worth $817,455,000 at the end of the most recent reporting period.

Other large investors also recently bought and sold shares of the company. Highline Wealth Partners LLC lifted its position in 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 position in Applied Materials in the fourth quarter worth about $31,000. Redmont Wealth Advisors LLC purchased a new position in Applied Materials in the third quarter worth about $26,000. Dogwood Wealth Management LLC raised its holdings in Applied Materials by 52.4% in the fourth quarter. Dogwood Wealth Management LLC now owns 128 shares of the manufacturing equipment provider's stock worth $33,000 after buying an additional 44 shares during the last quarter. Finally, IMG Wealth Management Inc. raised its holdings in Applied Materials by 147.2% in the fourth quarter. IMG Wealth Management Inc. now owns 131 shares of the manufacturing equipment provider's stock worth $34,000 after buying an additional 78 shares during the last quarter. 80.56% of the stock is owned by hedge funds and other institutional investors.

Applied Materials Stock Performance

Shares of NASDAQ AMAT opened at $453.01 on Monday. The firm has a 50 day moving average of $408.94 and a 200 day moving average of $343.11. The company has a current ratio of 2.51, a quick ratio of 1.80 and a debt-to-equity ratio of 0.22. The firm has a market capitalization of $359.67 billion, a price-to-earnings ratio of 42.54, a price-to-earnings-growth ratio of 1.27 and a beta of 1.67. Applied Materials, Inc. has a 12-month low of $154.46 and a 12-month high of $510.75.

Applied Materials (NASDAQ:AMAT - Get Free Report) last announced its earnings results on Thursday, May 14th. The manufacturing equipment provider reported $2.86 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.68 by $0.18. The company 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%. The firm's quarterly revenue was up 11.4% compared to the same quarter last year. During the same period in the previous 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, research analysts anticipate that Applied Materials, Inc. will post 12.02 earnings per share for the current year.

Applied Materials Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, June 11th. Shareholders of record on Thursday, May 21st will be issued a dividend of $0.53 per share. This is an increase from Applied Materials's previous quarterly dividend of $0.46. This represents a $2.12 annualized dividend and a yield of 0.5%. The ex-dividend date of this dividend is Thursday, May 21st. Applied Materials's payout ratio is presently 19.91%.

Insider Activity

In other Applied Materials news, CFO Brice Hill sold 2,500 shares of Applied Materials stock in a transaction that occurred on Wednesday, June 3rd. The shares were sold at an average price of $498.86, for a total transaction of $1,247,150.00. Following the transaction, the chief financial officer owned 136,113 shares of the company's stock, valued at $67,901,331.18. The trade was a 1.80% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Prabu G. Raja sold 50,000 shares of the business's stock in a transaction 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 completion of the transaction, the insider directly owned 356,642 shares in the company, valued at $180,204,069.76. This trade represents a 12.30% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 53,896 shares of company stock worth $27,135,121 over the last ninety days. Company insiders own 0.30% of the company's stock.

Analyst Upgrades and Downgrades

Several research analysts have issued reports on AMAT shares. Argus lifted their target price on shares of Applied Materials from $420.00 to $500.00 and gave the stock a "buy" rating in a report on Tuesday, May 19th. Bank of America lifted their target price on shares of Applied Materials from $465.00 to $540.00 and gave the stock a "buy" rating in a report on Friday, May 15th. Needham & Company LLC lifted their target price on shares of Applied Materials from $440.00 to $530.00 and gave the stock a "buy" rating in a report on Friday, May 15th. The Goldman Sachs Group lifted their target price on shares of Applied Materials from $390.00 to $520.00 and gave the stock a "buy" rating in a report on Friday, May 15th. Finally, B. Riley Financial lifted their target price on shares of Applied Materials from $530.00 to $550.00 and gave the stock a "buy" rating in a report on Friday, May 15th. Twenty-seven research analysts have rated the stock with a Buy rating and eight have given a Hold rating to the stock. Based on data from MarketBeat, Applied Materials has an average rating of "Moderate Buy" and an average target price of $470.13.

About Applied Materials

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.

Want to see what other hedge funds are holding AMAT? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Applied Materials, Inc. (NASDAQ:AMAT - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.