Geode Capital Management LLC Lowers Stock Position in Applied Materials, Inc. $AMAT

Key Points

• Geode Capital Management cut its Applied Materials stake by 11.1% in the fourth quarter, but still held 18.6 million shares valued at about $4.77 billion. Institutional investors remain heavily invested in the company, owning 80.56% of the stock.
• Applied Materials posted strong fiscal Q2 results, with revenue of $7.91 billion and EPS of $2.86, both beating estimates. The company also raised its Q3 2026 revenue guidance to about $8.95 billion, pointing to continued demand in semiconductor equipment and AI-related spending.
• Analysts remain broadly upbeat on AMAT, with multiple firms raising price targets and the consensus rating sitting at Moderate Buy. The stock also recently gained support from a higher quarterly dividend of $0.53 per share, up from $0.46.

Geode Capital Management LLC lessened its holdings in shares of Applied Materials, Inc. (NASDAQ:AMAT - Free Report) by 11.1% during the 4th quarter, according to its most recent disclosure with the SEC. The institutional investor owned 18,608,698 shares of the manufacturing equipment provider's stock after selling 2,329,106 shares during the quarter. Geode Capital Management LLC owned about 2.34% of Applied Materials worth $4,767,959,000 as of its most recent filing with the SEC.

Several other hedge funds have also made changes to their positions in AMAT. Godsey & Gibb Inc. raised its holdings in Applied Materials by 2.6% in the fourth quarter. Godsey & Gibb Inc. now owns 1,298 shares of the manufacturing equipment provider's stock valued at $334,000 after acquiring an additional 33 shares in the last quarter. Family Capital Management Inc. raised its holdings in Applied Materials by 0.8% during the fourth quarter. Family Capital Management Inc. now owns 4,227 shares of the manufacturing equipment provider's stock worth $1,086,000 after purchasing an additional 33 shares in the last quarter. Denali Advisors LLC grew its position in shares of Applied Materials by 0.7% during the fourth quarter. Denali Advisors LLC now owns 4,582 shares of the manufacturing equipment provider's stock worth $1,178,000 after acquiring an additional 34 shares during the last quarter. Traveka Wealth LLC grew its position in shares of Applied Materials by 2.6% during the fourth quarter. Traveka Wealth LLC now owns 1,404 shares of the manufacturing equipment provider's stock worth $361,000 after acquiring an additional 36 shares during the last quarter. Finally, Highline Wealth Partners LLC grew its position 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 worth $30,000 after acquiring an additional 38 shares during the last quarter. Institutional investors and hedge funds own 80.56% of the company's stock.

Key Stories Impacting Applied Materials

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

• Positive Sentiment: Applied Materials reported strong fiscal Q2 results, with revenue of $7.91 billion and EPS of $2.86, both ahead of estimates, which supports the case for continued fundamental strength. Applied Materials (AMAT) Is Up 11.8% After Raising Q3 Outlook And Expanding AI Packaging Alliance
• Positive Sentiment: The company raised Q3 2026 revenue guidance to about $8.95 billion, signaling management sees healthy demand in semiconductor equipment and AI-related spending. Applied Materials (AMAT) Is Up 11.8% After Raising Q3 Outlook And Expanding AI Packaging Alliance
• Positive Sentiment: Applied Materials expanded its AI packaging ecosystem by partnering with Broadcom and SCREEN Semiconductor Solutions, a development that could strengthen its position in next-generation chip packaging and advanced wafer cleaning. Applied Materials, Inc. (AMAT) Partners with Broadcom on Advanced Chip Packaging Technologies for AI Systems
• Positive Sentiment: The SCREEN partnership at the EPIC Center adds another innovation collaborator, which may improve chip yields and accelerate commercialization of advanced-node technologies. Applied Materials Partners with SCREEN To Bring Advanced Wafer Cleaning Technologies to EPIC Center
• Neutral Sentiment: CAO Adam Sanders sold 268 shares in a small insider transaction, which appears too minor to materially change the investment case. Applied Materials NASDAQ: AMAT CAO Sells $116,370.96 in Stock
• Negative Sentiment: A market commentary on momentum stocks warned that extended winners can pull back, which may be contributing to some caution around AMAT after its strong run. Intel, AMD, and Other Momentum Stocks Look Unstoppable. Look Again.

Insiders Place Their Bets

In other Applied Materials news, CAO Adam Sanders sold 268 shares of the stock in a transaction on Friday, May 22nd. The stock was sold at an average price of $434.22, for a total value of $116,370.96. Following the sale, the chief accounting officer directly owned 4,280 shares of the company's stock, valued at $1,858,461.60. This trade represents a 5.89% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. 0.30% of the stock is owned by corporate insiders.

Wall Street Analysts Forecast Growth

A number of brokerages have recently issued reports on AMAT. Stifel Nicolaus set a $530.00 target price on shares of Applied Materials in a research report on Friday, May 15th. UBS Group boosted their target price on shares of Applied Materials from $480.00 to $515.00 and gave the stock a "buy" rating in a research report on Friday, May 15th. KeyCorp boosted their target price on shares of Applied Materials from $450.00 to $550.00 and gave the stock an "overweight" rating in a research report on Friday, May 15th. Morgan Stanley reaffirmed an "equal weight" rating and set a $502.00 price target (up from $454.00) on shares of Applied Materials in a research note on Friday, May 15th. Finally, The Goldman Sachs Group lifted their price target on Applied Materials from $390.00 to $520.00 and gave the stock a "buy" rating in a research note on Friday, May 15th. Twenty-seven investment analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the stock. According to MarketBeat, Applied Materials has a consensus rating of "Moderate Buy" and a consensus price target of $466.52.

Applied Materials Trading Down 1.5%

NASDAQ AMAT opened at $448.25 on Thursday. The company has a 50-day moving average of $393.29 and a 200-day moving average of $331.12. The company has a market cap of $355.89 billion, a P/E ratio of 42.09, a P/E/G ratio of 1.27 and a beta of 1.66. Applied Materials, Inc. has a 12 month low of $153.47 and a 12 month high of $462.40. 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 posted its earnings results on Thursday, May 14th. The manufacturing equipment provider reported $2.86 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.68 by $0.18. The firm had revenue of $7.91 billion during the quarter, compared to the consensus estimate of $7.68 billion. Applied Materials had a net margin of 29.31% and a return on equity of 36.97%. The company's revenue was up 11.4% on a year-over-year basis. During the same quarter in the prior year, the company earned $2.39 EPS. Applied Materials has set its Q3 2026 guidance at 3.160-3.560 EPS. As a group, equities analysts predict 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. Investors of record on Thursday, May 21st will be given a dividend of $0.53 per share. The ex-dividend date of this dividend is Thursday, May 21st. This represents a $2.12 annualized dividend and a dividend yield of 0.5%. This is an increase from Applied Materials's previous quarterly dividend of $0.46. Applied Materials's dividend payout ratio is currently 19.91%.

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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