Jennison Associates LLC Has $99.90 Million Holdings in Applied Materials, Inc. $AMAT

Key Points

• Jennison Associates boosted its stake in Applied Materials by 185.9% in the first quarter, ending with 292,287 shares valued at about $99.9 million.
• Applied Materials reported better-than-expected quarterly earnings, with EPS of $2.86 on revenue of $7.91 billion, and it also issued Q3 guidance of $3.16 to $3.56 per share.
• Analysts remain largely positive on the stock, with several firms raising price targets and a consensus rating of Moderate Buy; however, insider selling and commentary that the shares may be trading above fair value could temper upside.

Jennison Associates LLC increased its position in shares of Applied Materials, Inc. (NASDAQ:AMAT - Free Report) by 185.9% in the first quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund owned 292,287 shares of the manufacturing equipment provider's stock after buying an additional 190,056 shares during the period. Jennison Associates LLC's holdings in Applied Materials were worth $99,901,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors have also bought and sold shares of the company. Cornerstone Financial Management LLC bought a new position in shares of Applied Materials in the 4th quarter worth about $25,000. Wilkerson Advisory Group LLC bought a new stake in shares of Applied Materials during the 4th quarter valued at about $26,000. Financial Freedom LLC acquired a new stake in Applied Materials during the first quarter worth approximately $28,000. Highline Wealth Partners LLC grew its stake in 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 purchasing an additional 38 shares during the period. Finally, Joseph Group Capital Management bought a new stake in Applied Materials in the fourth quarter worth approximately $31,000. Institutional investors and hedge funds own 80.56% of the company's stock.

Applied Materials Stock Performance

NASDAQ:AMAT opened at $529.66 on Monday. 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 firm has a 50-day moving average of $533.12 and a 200-day moving average of $414.11. The company has a market cap of $420.53 billion, a PE ratio of 49.73, a PEG ratio of 1.35 and a beta of 1.57. Applied Materials, Inc. has a one year low of $154.46 and a one year high of $739.67.

Applied Materials (NASDAQ:AMAT - Get Free Report) last announced its quarterly earnings results on Thursday, May 14th. The manufacturing equipment provider reported $2.86 earnings per share for the quarter, beating the consensus estimate of $2.68 by $0.18. The business had revenue of $7.91 billion for the quarter, compared to analysts' expectations of $7.68 billion. Applied Materials had a net margin of 29.31% and a return on equity of 36.97%. The firm's revenue for the quarter was up 11.4% compared to the same quarter last year. During the same quarter last year, the firm earned $2.39 EPS. Applied Materials has set its Q3 2026 guidance at 3.160-3.560 EPS. As a group, equities research analysts expect that Applied Materials, Inc. will post 12.14 EPS for the current fiscal year.

Applied Materials Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Thursday, August 20th will be issued a $0.53 dividend. This represents a $2.12 dividend on an annualized basis and a dividend yield of 0.4%. The ex-dividend date is Thursday, August 20th. Applied Materials's dividend payout ratio (DPR) is currently 19.91%.

Applied Materials News Summary

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

• Positive Sentiment: Erste Group Bank raised its FY2026 and FY2027 earnings estimates for Applied Materials and reiterated a Buy rating, signaling confidence in the company’s growth outlook and AI-driven demand. Article link
• Positive Sentiment: Applied Materials CEO comments reinforcing the AI investment thesis may help support longer-term sentiment around the stock. Article link
• Neutral Sentiment: Zacks noted that AMAT has been drawing increased attention from investors, but the piece was mainly a stock-screening update rather than a new fundamental catalyst. Article link
• Neutral Sentiment: Recent commentary suggested Applied Materials may be trading above fair value after a strong multi-year run, which could limit upside even if earnings remain solid. Article link
• Negative Sentiment: A broad semiconductor selloff is pressuring AMAT along with peers like AMD and Intel, as the market rotates out of chip stocks and into other areas. Article link

Insider Buying and Selling

In related news, 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 sale, the insider directly owned 356,642 shares of the company's stock, valued at approximately $180,204,069.76. This represents a 12.30% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CEO Gary E. Dickerson sold 71,727 shares of the firm's stock in a transaction on Tuesday, June 16th. The shares were sold at an average price of $593.75, for a total value of $42,587,906.25. Following the transaction, the chief executive officer owned 1,695,164 shares in the company, valued at approximately $1,006,503,625. This trade represents a 4.06% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders have sold 278,088 shares of company stock valued at $169,654,805. 0.30% of the stock is currently owned by company insiders.

Analyst Upgrades and Downgrades

Several equities analysts have issued reports on AMAT shares. Citigroup boosted their price target on Applied Materials from $550.00 to $710.00 and gave the company a "buy" rating in a research note on Wednesday, June 17th. Sanford C. Bernstein reiterated an "outperform" rating and issued a $525.00 price objective on shares of Applied Materials in a research note on Friday, May 15th. JPMorgan Chase & Co. boosted their target price on shares of Applied Materials from $400.00 to $515.00 and gave the company an "overweight" rating in a research report on Friday, May 15th. Argus increased their target price on shares of Applied Materials from $420.00 to $500.00 and gave the stock a "buy" rating in a research note on Tuesday, May 19th. Finally, Morgan Stanley raised their price target on shares of Applied Materials from $502.00 to $647.00 and gave the stock an "equal weight" rating in a report on Monday, July 6th. One research analyst has rated the stock with a Strong Buy rating, twenty-seven have given a Buy rating and six have given a Hold rating to the company's stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $593.84.

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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