Hendley & Co. Inc. Cuts Stock Position in Applied Materials, Inc. $AMAT

Key Points

• Hendley & Co. Inc. sharply reduced its Applied Materials stake by 95.9% in the first quarter, leaving it with 1,095 shares worth about $374,000.
• Several other institutional investors remain heavily invested in AMAT, and hedge funds and institutions own 80.56% of the company’s stock overall.
• Applied Materials reported better-than-expected quarterly earnings and revenue, raised/received higher analyst price targets, and continues to benefit from optimism around AI and semiconductor demand.

Hendley & Co. Inc. trimmed its holdings in shares of Applied Materials, Inc. (NASDAQ:AMAT - Free Report) by 95.9% in the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 1,095 shares of the manufacturing equipment provider's stock after selling 25,752 shares during the quarter. Hendley & Co. Inc.'s holdings in Applied Materials were worth $374,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also recently made changes to their positions in AMAT. Vanguard Group Inc. raised its position in Applied Materials by 0.4% during the fourth quarter. Vanguard Group Inc. now owns 76,779,340 shares of the manufacturing equipment provider's stock worth $19,731,523,000 after acquiring an additional 330,197 shares during the period. Capital Research Global Investors grew its position in shares of Applied Materials by 119.8% in the fourth quarter. Capital Research Global Investors now owns 32,707,049 shares of the manufacturing equipment provider's stock valued at $8,405,458,000 after purchasing an additional 17,829,377 shares during the period. Ameriprise Financial Inc. grew its position in shares of Applied Materials by 40.1% in the third quarter. Ameriprise Financial Inc. now owns 12,520,114 shares of the manufacturing equipment provider's stock valued at $2,563,376,000 after purchasing an additional 3,583,751 shares during the period. Morgan Stanley increased its stake in shares of Applied Materials by 3.4% during the fourth quarter. Morgan Stanley now owns 11,470,835 shares of the manufacturing equipment provider's stock worth $2,947,891,000 after purchasing an additional 373,012 shares in the last quarter. Finally, Norges Bank purchased a new stake in shares of Applied Materials during the fourth quarter worth about $2,858,543,000. Hedge funds and other institutional investors own 80.56% of the company's stock.

Insider Activity

In related news, SVP Omkaram Nalamasu sold 24,263 shares of the company's stock in a transaction dated Tuesday, June 16th. The shares were sold at an average price of $593.43, for a total value of $14,398,392.09. Following the completion of the sale, the senior vice president owned 146,916 shares of the company's stock, valued at approximately $87,184,361.88. This represents a 14.17% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. Also, insider Prabu G. Raja sold 50,000 shares of the firm's stock in a transaction dated 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 of the company's stock, valued at approximately $180,204,069.76. The trade was a 12.30% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 199,767 shares of company stock worth $114,104,709. Insiders own 0.30% of the company's stock.

Analyst Upgrades and Downgrades

A number of brokerages recently weighed in on AMAT. HSBC began coverage on shares of Applied Materials in a research note on Friday, May 8th. They issued a "buy" rating and a $517.00 price target on the stock. Zacks Research cut Applied Materials from a "strong-buy" rating to a "hold" rating in a report on Monday, April 27th. Wells Fargo & Company raised their target price on Applied Materials from $520.00 to $715.00 and gave the company an "overweight" rating in a research report on Monday. Seaport Research Partners started coverage on Applied Materials in a research note on Monday, May 4th. They issued a "buy" rating and a $500.00 price target on the stock. Finally, Deutsche Bank Aktiengesellschaft increased their price objective on Applied Materials from $450.00 to $550.00 and gave the company a "buy" rating in a research note on Friday, May 15th. Twenty-seven analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $495.45.

More Applied Materials News

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

• Positive Sentiment: Citi raised its price target on Applied Materials to $710 from $550 and kept a Buy rating, signaling stronger confidence in the semiconductor equipment maker’s outlook. A Growing Supply Gap Has Analysts Eyeing Applied Materials (AMAT)
• Positive Sentiment: Reuters reported that Applied Materials signed a long-term deal with EssilorLuxottica to develop augmented-reality display technology and AI glasses, expanding its opportunity in emerging wearable and AI-related markets. Applied Materials (AMAT) and EssilorLuxottica Sign Long-Term Deal, Reuters Reports
• Positive Sentiment: Recent commentary says AI demand may help justify AMAT’s premium valuation, with investors focusing on the company’s role in semiconductor and AI infrastructure spending. Applied Materials Is Now More Expensive Than Its Dot-Com Era Peak. AI Demand Justifies the AMAT Stock Valuation.
• Neutral Sentiment: Insider Prabu G. Raja sold 10,000 shares, a routine filing that may draw attention but does not necessarily indicate a change in the company’s fundamentals. SEC Form 4 filing
• Negative Sentiment: Some articles highlighted concerns that AMAT’s valuation is becoming stretched, which could limit near-term upside if growth expectations cool. Applied Materials Stock Looks Pricey—Can AI Demand Justify the Rally?

Applied Materials Trading Up 3.7%

Shares of Applied Materials stock opened at $640.18 on Tuesday. The company has a debt-to-equity ratio of 0.22, a current ratio of 2.51 and a quick ratio of 1.80. The stock's 50 day simple moving average is $455.89 and its 200-day simple moving average is $368.31. The stock has a market cap of $508.28 billion, a P/E ratio of 60.11, a P/E/G ratio of 1.72 and a beta of 1.67. Applied Materials, Inc. has a 1-year low of $154.46 and a 1-year high of $641.18.

Applied Materials (NASDAQ:AMAT - Get Free Report) last announced its quarterly earnings data on Thursday, May 14th. The manufacturing equipment provider reported $2.86 EPS for the quarter, topping analysts' consensus estimates of $2.68 by $0.18. The firm had revenue of $7.91 billion for the quarter, compared to the consensus estimate of $7.68 billion. Applied Materials had a return on equity of 36.97% and a net margin of 29.31%.The firm's revenue was up 11.4% compared to the same quarter last year. During the same quarter last year, the business posted $2.39 earnings per share. Applied Materials has set its Q3 2026 guidance at 3.160-3.560 EPS. Analysts predict that Applied Materials, Inc. will post 12.1 EPS for the current fiscal year.

Applied Materials Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Thursday, August 20th will be issued a dividend of $0.53 per share. This represents a $2.12 annualized dividend and a dividend yield of 0.3%. The ex-dividend date is Thursday, August 20th. Applied Materials's payout ratio is currently 19.91%.

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.

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