Midwest Trust Co Cuts Stake in Applied Materials, Inc. $AMAT

Key Points

• Midwest Trust Co. reduced its Applied Materials stake by 2.6% in the second quarter, selling 2,581 shares and retaining 95,762 shares worth approximately $69.2 million. Institutional investors collectively own 80.56% of the company.
• Applied Materials exceeded quarterly expectations with $3.50 EPS and $9.12 billion in revenue, up 24.8% year over year. Management issued above-consensus fiscal fourth-quarter guidance of $3.82–$4.22 EPS and roughly $9.8–$10.8 billion in revenue.
• The stock carries a “Moderate Buy” consensus rating and an average analyst price target of $640.17, but elevated expectations, competition, margin concerns and broader semiconductor-sector pressure have weighed on shares.

Midwest Trust Co lowered its stake in shares of Applied Materials, Inc. (NASDAQ:AMAT - Free Report) by 2.6% in the 2nd quarter, according to the company in its most recent disclosure with the SEC. The firm owned 95,762 shares of the manufacturing equipment provider's stock after selling 2,581 shares during the quarter. Midwest Trust Co's holdings in Applied Materials were worth $69,236,000 as of its most recent SEC filing.

A number of other large investors have also added to or reduced their stakes in the stock. Financial Freedom LLC purchased a new position in Applied Materials in the first quarter valued at about $28,000. Elevation Wealth Partners LLC grew its position in shares of Applied Materials by 34.8% during the 2nd quarter. Elevation Wealth Partners LLC now owns 93 shares of the manufacturing equipment provider's stock valued at $67,000 after acquiring an additional 24 shares during the period. Cornerstone Financial Management LLC purchased a new stake in shares of Applied Materials during the 4th quarter worth approximately $25,000. Whipplewood Advisors LLC raised its holdings in shares of Applied Materials by 218.8% in the 1st quarter. Whipplewood Advisors LLC now owns 102 shares of the manufacturing equipment provider's stock worth $35,000 after purchasing an additional 70 shares during the period. Finally, Wilkerson Advisory Group LLC bought a new stake in shares of Applied Materials in the 4th quarter worth approximately $26,000. Hedge funds and other institutional investors own 80.56% of the company's stock.

Applied Materials Price Performance

Applied Materials stock opened at $507.18 on Monday. The firm has a market capitalization of $402.68 billion, a P/E ratio of 43.72, a PEG ratio of 1.25 and a beta of 1.61. Applied Materials, Inc. has a one year low of $154.46 and a one year high of $739.67. The company has a debt-to-equity ratio of 0.20, a current ratio of 2.42 and a quick ratio of 1.79. The business has a fifty day moving average price of $564.15 and a 200-day moving average price of $445.77.

Applied Materials (NASDAQ:AMAT - Get Free Report) last issued its quarterly earnings data on Thursday, August 13th. The manufacturing equipment provider reported $3.50 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $3.40 by $0.10. The business had revenue of $9.12 billion for the quarter, compared to analysts' expectations of $8.99 billion. Applied Materials had a return on equity of 38.02% and a net margin of 30.05%.During the same quarter in the prior year, the firm posted $2.48 EPS. The firm's quarterly revenue was up 24.8% on a year-over-year basis. Applied Materials has set its Q4 2026 guidance at 3.820-4.220 EPS. As a group, equities research analysts forecast that Applied Materials, Inc. will post 12.48 EPS for the current year.

Applied Materials Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Thursday, August 20th will be given a dividend of $0.53 per share. 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 payout ratio is 18.28%.

Key Headlines Impacting Applied Materials

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.

Analysts Set New Price Targets

Several equities analysts have weighed in on the company. Barclays increased their price objective on Applied Materials from $500.00 to $590.00 and gave the company an "overweight" rating in a report on Thursday, June 11th. UBS Group set a $675.00 target price on Applied Materials in a research note on Friday. Deutsche Bank Aktiengesellschaft reaffirmed a "buy" rating and set a $605.00 price target on shares of Applied Materials in a research report on Friday. Raymond James Financial set a $650.00 price target on Applied Materials in a research note on Wednesday, June 10th. Finally, Seaport Research Partners reissued a "buy" rating and issued a $575.00 price objective on shares of Applied Materials in a report on Friday. One equities research analyst has rated the stock with a Strong Buy rating, twenty-seven have assigned a Buy rating and six have issued a Hold rating to the stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $640.17.

Insider Transactions at Applied Materials

In related news, CEO Gary E. Dickerson sold 71,727 shares of the business's stock in a transaction dated Tuesday, June 16th. The stock was sold at an average price of $593.75, for a total transaction of $42,587,906.25. Following the completion of the transaction, the chief executive officer directly owned 1,695,164 shares in the company, valued at $1,006,503,625. The trade was a 4.06% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, SVP Timothy M. Deane sold 8,621 shares of the business's stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $590.76, for a total value of $5,092,941.96. Following the transaction, the senior vice president owned 134,631 shares of the company's stock, valued at approximately $79,534,609.56. The trade was a 6.02% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 278,088 shares of company stock valued at $169,654,805. Corporate 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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