Lowe Brockenbrough & Co. Inc. Decreases Stake in Applied Materials, Inc. $AMAT

Key Points

• Lowe Brockenbrough & Co. reduced its Applied Materials stake by 33% in the second quarter, selling 19,057 shares and retaining 38,765 shares valued at approximately $28 million.
• Applied Materials reported quarterly revenue of $9.12 billion and EPS of $3.50, beating analyst expectations, while issuing fiscal fourth-quarter EPS guidance of $3.82–$4.22. Despite strong results, shares were down 5.1% amid high investor expectations and concerns about growth, margins and competition.
• Analysts remain broadly positive, with a consensus “Moderate Buy” rating and an average price target of $640.17. The company also declared a quarterly dividend of $0.53 per share, representing a 0.4% yield.

Lowe Brockenbrough & Co. Inc. cut its holdings in shares of Applied Materials, Inc. (NASDAQ:AMAT - Free Report) by 33.0% during the second quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund owned 38,765 shares of the manufacturing equipment provider's stock after selling 19,057 shares during the quarter. Applied Materials comprises 1.2% of Lowe Brockenbrough & Co. Inc.'s investment portfolio, making the stock its 16th biggest position. Lowe Brockenbrough & Co. Inc.'s holdings in Applied Materials were worth $28,022,000 as of its most recent SEC filing.

Other large investors also recently bought and sold shares of the company. Cornerstone Financial Management LLC purchased a new position in Applied Materials in the 4th quarter worth approximately $25,000. Wilkerson Advisory Group LLC purchased a new stake in shares of Applied Materials in the fourth quarter valued at approximately $26,000. Financial Freedom LLC purchased a new stake in shares of Applied Materials in the first quarter valued at approximately $28,000. Joseph Group Capital Management purchased a new stake in shares of Applied Materials in the fourth quarter valued at approximately $31,000. Finally, Dogwood Wealth Management LLC increased its holdings in shares of Applied Materials by 52.4% in the fourth quarter. Dogwood Wealth Management LLC now owns 128 shares of the manufacturing equipment provider's stock valued at $33,000 after purchasing an additional 44 shares during the last quarter. Hedge funds and other institutional investors own 80.56% of the company's stock.

Applied Materials Stock Down 5.1%

Shares of AMAT opened at $507.18 on Friday. The company's 50-day moving average price is $564.15 and its 200 day moving average price is $444.89. Applied Materials, Inc. has a 12-month low of $154.46 and a 12-month high of $739.67. 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 cap of $402.68 billion, a P/E ratio of 43.72, a price-to-earnings-growth ratio of 1.35 and a beta of 1.61.

Applied Materials (NASDAQ:AMAT - Get Free Report) last announced its quarterly earnings results on Thursday, August 13th. The manufacturing equipment provider reported $3.50 earnings per share for the quarter, beating analysts' consensus estimates of $3.40 by $0.10. The business had revenue of $9.12 billion during the quarter, compared to analysts' expectations of $8.99 billion. Applied Materials had a net margin of 30.05% and a return on equity of 39.58%. The business's revenue for the quarter was up 24.8% on a year-over-year basis. During the same period last year, the business earned $2.48 earnings per share. Applied Materials has set its Q4 2026 guidance at 3.820-4.220 EPS. On average, sell-side analysts forecast that Applied Materials, Inc. will post 12.22 earnings per share for the current year.

Applied Materials Announces Dividend

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

More Applied Materials News

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

• Positive Sentiment: Record quarterly performance: Fiscal Q3 revenue rose 24.8% year over year to $9.12 billion, ahead of the $8.99 billion consensus estimate, while adjusted EPS of $3.50 exceeded expectations. AI infrastructure demand, advanced packaging and memory spending supported growth. Applied Materials Q3 Earnings Beat Estimates, Revenues Rise Y/Y
• Positive Sentiment: Above-consensus outlook: Management projected fiscal Q4 revenue of approximately $9.8 billion to $10.8 billion and EPS of $3.82 to $4.22, both above analyst expectations. The company also pointed to stronger systems growth and unusually long customer visibility into fiscal 2027 and beyond. Applied Materials Forecasts Quarterly Revenue Above Estimates
• Positive Sentiment: Analyst and institutional support: JPMorgan, RBC, TD Cowen, B. Riley, Needham and other firms maintained positive ratings or raised price targets. Soros Capital also reportedly added AMAT among several semiconductor positions, reinforcing the longer-term AI and chip-cycle investment case. Soros Capital Loads Up on Semiconductor Stocks
• Neutral Sentiment: Options imply a possible rebound: Derivatives-market data indicates traders expect the pullback could be temporary, although elevated volatility reflects uncertainty over the stock’s near-term direction. Applied Materials Options Data
• Negative Sentiment: Expectations were exceptionally high: Despite the earnings beat and upbeat guidance, investors wanted faster growth and clearer evidence that AMAT is outpacing rivals in semiconductor manufacturing equipment. Concerns about competition, margins and the pace of systems growth overshadowed the headline results. Applied Materials Slips as Investors Seek Faster Growth
• Negative Sentiment: Broader market pressure added to selling: Weaker July retail-sales data, profit-taking after record highs and a semiconductor-sector selloff weighed on AMAT and other AI-related stocks.

Analyst Ratings Changes

A number of equities analysts recently commented on AMAT shares. Needham & Company LLC reiterated a "buy" rating and set a $740.00 price objective on shares of Applied Materials in a research report on Friday. Deutsche Bank Aktiengesellschaft restated a "buy" rating and issued a $605.00 target price on shares of Applied Materials in a report on Friday. Sanford C. Bernstein lifted their price target on Applied Materials from $675.00 to $700.00 and gave the stock an "outperform" rating in a report on Friday. Wolfe Research upped their price objective on shares of Applied Materials from $500.00 to $550.00 and gave the company an "outperform" rating in a report on Friday, May 15th. Finally, Zacks Research raised shares of Applied Materials from a "hold" rating to a "strong-buy" rating in a research note on Wednesday, July 1st. One investment analyst has rated the stock with a Strong Buy rating, twenty-seven have issued a Buy rating and six have given a Hold rating to the stock. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $640.17.

Insider Transactions at Applied Materials

In related news, CEO Gary E. Dickerson sold 20,000 shares of the stock in a transaction dated Tuesday, June 30th. The stock was sold at an average price of $735.22, for a total transaction of $14,704,400.00. Following the transaction, the chief executive officer owned 1,599,843 shares of the company's stock, valued at approximately $1,176,236,570.46. This represents a 1.23% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, SVP Timothy M. Deane sold 8,621 shares of the stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $590.76, for a total transaction of $5,092,941.96. Following the sale, the senior vice president directly owned 134,631 shares in the company, valued at $79,534,609.56. This represents a 6.02% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 278,088 shares of company stock worth $169,654,805 in the last three months. Company insiders own 0.30% of the company's stock.

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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