Hodges Capital Management Inc. Grows Stake in Applied Materials, Inc. $AMAT

Key Points

• Hodges Capital Management dramatically increased its Applied Materials stake by 2,673.8% in the first quarter, ending with 43,687 shares worth about $14.9 million.
• Applied Materials has seen mixed insider activity, with executives including SVP Timothy M. Deane and Director Thomas J. Iannotti selling shares, while insiders sold 278,088 shares in the last quarter overall.
• Despite some valuation concerns and sector volatility, analysts remain broadly bullish on AMAT because of AI-driven semiconductor demand, with several firms raising price targets and earnings recently beating expectations.

Hodges Capital Management Inc. grew its stake in shares of Applied Materials, Inc. (NASDAQ:AMAT - Free Report) by 2,673.8% in the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 43,687 shares of the manufacturing equipment provider's stock after acquiring an additional 42,112 shares during the quarter. Applied Materials comprises approximately 1.2% of Hodges Capital Management Inc.'s portfolio, making the stock its 20th biggest position. Hodges Capital Management Inc.'s holdings in Applied Materials were worth $14,932,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other large investors have also recently modified their holdings of the company. Cornerstone Financial Management LLC purchased a new stake in Applied Materials during the 4th quarter valued at about $25,000. Wilkerson Advisory Group LLC purchased a new position in Applied Materials in the fourth quarter worth about $26,000. Highline Wealth Partners LLC raised its holdings in Applied Materials by 48.7% in the fourth quarter. Highline Wealth Partners LLC now owns 116 shares of the manufacturing equipment provider's stock worth $30,000 after buying an additional 38 shares during the last quarter. Joseph Group Capital Management bought a new position in shares of Applied Materials in the fourth quarter worth approximately $31,000. Finally, Dogwood Wealth Management LLC grew 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 valued at $33,000 after buying an additional 44 shares during the last quarter. Hedge funds and other institutional investors own 80.56% of the company's stock.

Insider Buying and Selling at Applied Materials

In other news, SVP Timothy M. Deane sold 8,621 shares of the company's stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $590.76, for a total transaction of $5,092,941.96. Following the completion of the sale, the senior vice president owned 134,631 shares of the company's stock, valued at $79,534,609.56. This represents a 6.02% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Thomas J. Iannotti sold 9,250 shares of the stock in a transaction that occurred on Tuesday, June 16th. The stock was sold at an average price of $599.77, for a total transaction of $5,547,872.50. Following the completion of the transaction, the director owned 40,559 shares in the company, valued at $24,326,071.43. This trade represents a 18.57% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders sold 278,088 shares of company stock worth $169,654,805. 0.30% of the stock is owned by corporate insiders.

Applied Materials News Roundup

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

Applied Materials Stock Performance

Shares of AMAT stock opened at $603.04 on Monday. The company has a current ratio of 2.51, a quick ratio of 1.80 and a debt-to-equity ratio of 0.22. Applied Materials, Inc. has a 12-month low of $154.46 and a 12-month high of $739.67. The stock has a market capitalization of $478.79 billion, a P/E ratio of 56.62, a P/E/G ratio of 1.68 and a beta of 1.57. The firm's 50 day moving average is $499.51 and its 200 day moving average is $391.80.

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 (EPS) for the quarter, topping analysts' consensus estimates of $2.68 by $0.18. Applied Materials had a return on equity of 36.97% and a net margin of 29.31%.The firm had revenue of $7.91 billion for the quarter, compared to the consensus estimate of $7.68 billion. During the same period last year, the business posted $2.39 EPS. The company's revenue for the quarter was up 11.4% on a year-over-year basis. Applied Materials has set its Q3 2026 guidance at 3.160-3.560 EPS. Research analysts expect that Applied Materials, Inc. will post 12.11 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. Shareholders of record on Thursday, August 20th will be given a $0.53 dividend. This represents a $2.12 annualized dividend and a yield of 0.4%. The ex-dividend date of this dividend is Thursday, August 20th. Applied Materials's dividend payout ratio (DPR) is presently 19.91%.

Analysts Set New Price Targets

A number of equities analysts recently weighed in on the stock. Citigroup boosted their price objective on shares of Applied Materials from $550.00 to $710.00 and gave the stock a "buy" rating in a report on Wednesday, June 17th. UBS Group lifted their target price on Applied Materials from $515.00 to $570.00 and gave the stock a "buy" rating in a report on Wednesday, June 10th. 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 for the company. HC Wainwright set a $850.00 price target on Applied Materials in a report on Monday, June 29th. Finally, Truist Financial set a $575.00 price objective on Applied Materials in a research report on Thursday, May 28th. One investment analyst has rated the stock with a Strong Buy rating, twenty-seven have assigned a Buy rating and seven have given a Hold rating to the stock. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price of $553.56.

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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