NEOS Investment Management LLC Acquires 54,923 Shares of Applied Materials, Inc. $AMAT

Key Points

• NEOS Investment Management increased its Applied Materials stake by 10% in the second quarter, acquiring 54,923 shares and bringing its holdings to 605,023 shares valued at approximately $437.4 million. Institutional investors collectively own 80.56% of the company.
• Applied Materials exceeded quarterly expectations with $3.50 in EPS and $9.12 billion in revenue, up 24.8% year over year. AI infrastructure spending and semiconductor-fabrication investment are supporting demand, although valuation and semiconductor-cycle concerns remain risks.
• The stock recently traded at $435.91, while analysts maintained a “Moderate Buy” consensus and an average price target of $658.45. The company also announced a quarterly dividend of $0.53 per share, equivalent to a 0.5% annual yield.

NEOS Investment Management LLC raised its holdings in shares of Applied Materials, Inc. (NASDAQ:AMAT - Free Report) by 10.0% during the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund owned 605,023 shares of the manufacturing equipment provider's stock after purchasing an additional 54,923 shares during the period. Applied Materials makes up about 1.6% of NEOS Investment Management LLC's investment portfolio, making the stock its 14th largest holding. NEOS Investment Management LLC owned 0.08% of Applied Materials worth $437,432,000 at the end of the most recent quarter.

Other institutional investors and hedge funds have also modified their holdings of the company. Capital Research Global Investors lifted its holdings in shares of Applied Materials by 119.8% during 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 in the last quarter. Norges Bank bought a new stake in Applied Materials in the 4th quarter worth about $2,858,543,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its holdings in Applied Materials by 617.2% in the 3rd quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 9,129,483 shares of the manufacturing equipment provider's stock worth $1,869,170,000 after buying an additional 7,856,576 shares in the last quarter. Bank of America Corp DE purchased a new position in Applied Materials in the 2nd quarter worth about $5,252,863,000. Finally, Auto Owners Insurance Co raised its position in Applied Materials by 25,824.4% in the 4th quarter. Auto Owners Insurance Co now owns 3,370,167 shares of the manufacturing equipment provider's stock worth $86,610,000 after buying an additional 3,357,167 shares during the last quarter. Institutional investors own 80.56% of the company's stock.

Applied Materials Trading Down 0.6%

Shares of NASDAQ:AMAT opened at $435.91 on Friday. The stock's 50-day simple moving average is $536.69 and its two-hundred day simple moving average is $460.63. The stock has a market capitalization of $345.94 billion, a price-to-earnings ratio of 37.58, a PEG ratio of 1.22 and a beta of 1.60. Applied Materials, Inc. has a 52-week low of $155.40 and a 52-week high of $739.67. The company has a debt-to-equity ratio of 0.20, a quick ratio of 1.79 and a current ratio of 2.42.

Applied Materials (NASDAQ:AMAT - Get Free Report) last released its quarterly earnings results on Thursday, August 13th. The manufacturing equipment provider reported $3.50 EPS for the quarter, beating the consensus estimate of $3.40 by $0.10. Applied Materials had a net margin of 30.05% and a return on equity of 38.02%. The firm had revenue of $9.12 billion during the quarter, compared to analyst estimates of $8.99 billion. During the same quarter in the prior year, the firm earned $2.48 EPS. The business's revenue for the quarter was up 24.8% compared to the same quarter last year. Applied Materials has set its Q4 2026 guidance at 3.820-4.220 EPS. Analysts expect that Applied Materials, Inc. will post 12.76 EPS for the current year.

Applied Materials Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Thursday, August 20th will be issued a dividend of $0.53 per share. This represents a $2.12 dividend on an annualized basis and a yield of 0.5%. The ex-dividend date of this dividend is Thursday, August 20th. Applied Materials's dividend payout ratio is currently 18.28%.

Key Applied Materials News

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

• Positive Sentiment: AI infrastructure spending is supporting demand for Applied Materials’ semiconductor equipment, particularly in advanced packaging, DRAM and high-bandwidth memory (HBM). Accelerating global fab investment could sustain growth in wafer-fabrication equipment. AMAT Rides on AI-Led WFE Demand: Can it Sustain the Momentum?
• Positive Sentiment: Analysts have raised their Applied Materials earnings expectations, including an increase to the fiscal 2027 EPS estimate. UBS also reportedly sees meaningful potential appreciation, reinforcing the bullish outlook for the stock. FY2027 EPS Estimate for Applied Materials Boosted by Analyst
• Positive Sentiment: Management’s forecast was raised twice between February and August. Investors have re-rated AMAT based on improving forward expectations, even though trailing-twelve-month revenue growth was only 7.8%. Why Did Applied Materials Stock Nearly Triple on Single-Digit Trailing Revenue Growth?
• Neutral Sentiment: The semiconductor wafer-inspection market is expected to expand through 2035, driven by AI, electric vehicles, advanced nodes and advanced packaging. This supports Applied Materials’ long-term addressable market but does not necessarily provide an immediate earnings catalyst. Semiconductor Wafer Inspection Equipment Market Outlook 2025-2035
• Negative Sentiment: Valuation remains the main pressure point. After a roughly 237% five-year gain and a major year-to-date advance, investors may be demanding increasingly strong results to justify AMAT’s premium multiple. Can Applied Materials Still Look Cheap After a 237% Run?
• Negative Sentiment: The stock’s recent decline despite record revenue and above-consensus guidance suggests that expectations, profit-taking and concerns about the semiconductor cycle are outweighing the positive operating news. Applied Materials Just Dropped 14% in a Month. Sell Now, or Buy More?

Analysts Set New Price Targets

A number of analysts have recently issued reports on the stock. HSBC reaffirmed a "buy" rating and set a $683.00 price target on shares of Applied Materials in a report on Monday, July 27th. B. Riley Financial reissued a "buy" rating and set a $700.00 price objective (down from $790.00) on shares of Applied Materials in a report on Friday, August 14th. Wall Street Zen upgraded shares of Applied Materials from a "hold" rating to a "buy" rating in a research report on Saturday, August 15th. Weiss Ratings upgraded shares of Applied Materials from a "buy (b-)" rating to a "buy (b)" rating in a report on Tuesday, August 25th. Finally, Bank of America cut their target price on shares of Applied Materials from $720.00 to $650.00 and set a "buy" rating for the company in a research report on Friday, August 14th. One investment analyst has rated the stock with a Strong Buy rating, twenty-seven have assigned a Buy rating and five have assigned a Hold rating to the company. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $658.45.

Insider Buying and Selling at Applied Materials

In other news, CFO Brice Hill sold 7,500 shares of the business's stock in a transaction on Tuesday, August 25th. The shares were sold at an average price of $479.25, for a total transaction of $3,594,375.00. Following the completion of the sale, the chief financial officer owned 128,613 shares of the company's stock, valued at $61,637,780.25. The trade was a 5.51% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Thomas Iannotti sold 9,250 shares of the company's stock in a transaction on Tuesday, June 16th. The stock was sold at an average price of $599.77, for a total value of $5,547,872.50. Following the completion of the sale, the director owned 40,559 shares of the company's stock, valued at $24,326,071.43. This trade represents a 18.57% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 231,692 shares of company stock valued at $146,114,059 in the last quarter. Insiders own 0.30% of the company's stock.

Applied Materials Company 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.

Want to see what other hedge funds are holding AMAT? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Applied Materials, Inc. (NASDAQ:AMAT - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source