Professional Advisory Services Inc. Sells 6,661 Shares of Applied Materials, Inc. $AMAT

Key Points

• Professional Advisory Services Inc. cut its Applied Materials stake by 33.5%, selling 6,661 shares and retaining 13,230 shares valued at $9.565 million. Institutional investors collectively own 80.56% of the company.
• Applied Materials exceeded quarterly expectations with EPS of $2.86 and revenue of $7.91 billion, while revenue rose 11.4% year over year. The company also declared a quarterly dividend of $0.53 per share, yielding approximately 0.4%.
• Analyst sentiment remains broadly positive, with a “Moderate Buy” consensus and an average price target of $603.23, though executives sold substantial shares recently. Insiders sold 278,088 shares worth $169.7 million over the past 90 days, raising valuation and volatility concerns.

Professional Advisory Services Inc. trimmed its position in shares of Applied Materials, Inc. (NASDAQ:AMAT - Free Report) by 33.5% during the second quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 13,230 shares of the manufacturing equipment provider's stock after selling 6,661 shares during the period. Professional Advisory Services Inc.'s holdings in Applied Materials were worth $9,565,000 at the end of the most recent quarter.

Several other hedge funds have also recently bought and sold shares of the company. Financial Freedom LLC bought a new position in Applied Materials in the first quarter valued at approximately $28,000. Elevation Wealth Partners LLC lifted its stake in Applied Materials by 34.8% during the second quarter. Elevation Wealth Partners LLC now owns 93 shares of the manufacturing equipment provider's stock worth $67,000 after purchasing an additional 24 shares during the last quarter. Cornerstone Financial Management LLC bought a new stake in Applied Materials during the fourth quarter worth $25,000. Whipplewood Advisors LLC boosted 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 valued at $35,000 after purchasing an additional 70 shares in the last quarter. Finally, Wilkerson Advisory Group LLC bought a new position in shares of Applied Materials in the 4th quarter valued at $26,000. 80.56% of the stock is owned by institutional investors.

Insider Transactions at Applied Materials

In other news, Director Thomas J. Iannotti sold 9,250 shares of the business's stock in a transaction that occurred on Tuesday, June 16th. The shares were sold at an average price of $599.77, for a total value of $5,547,872.50. Following the transaction, the director owned 40,559 shares in the company, valued at approximately $24,326,071.43. The trade was a 18.57% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Gary E. Dickerson sold 71,727 shares of Applied Materials stock in a transaction on 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 transaction, the chief executive officer directly owned 1,695,164 shares of the company's stock, valued at $1,006,503,625. This represents a 4.06% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 278,088 shares of company stock worth $169,654,805. Company insiders own 0.30% of the company's stock.

Applied Materials Stock Up 2.2%

NASDAQ:AMAT opened at $539.14 on Friday. 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 0.22, a current ratio of 2.51 and a quick ratio of 1.80. The company has a market cap of $428.06 billion, a PE ratio of 50.62, a P/E/G ratio of 1.34 and a beta of 1.61. The firm's 50 day simple moving average is $559.47 and its 200 day simple moving average is $437.71.

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, beating the consensus estimate of $2.68 by $0.18. Applied Materials had a net margin of 29.31% and a return on equity of 36.97%. The firm had revenue of $7.91 billion during the quarter, compared to the consensus estimate of $7.68 billion. During the same quarter last year, the firm earned $2.39 earnings per share. 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. On average, research analysts anticipate that Applied Materials, Inc. will post 12.17 earnings per share for the current year.

Applied Materials Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Thursday, August 20th will be paid 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 of this dividend is Thursday, August 20th. Applied Materials's payout ratio is currently 19.91%.

Trending Headlines about Applied Materials

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

• Positive Sentiment: Analysts remain broadly optimistic about AMAT, with consensus price targets implying additional upside. Citi reportedly identified Applied Materials as a top semiconductor pick following the sector’s selloff, while other coverage highlights the company’s strong position in deposition, etch, inspection and wafer-processing equipment. Are Wall Street Analysts Predicting Applied Materials Stock Will Climb or Sink?
• Positive Sentiment: AI infrastructure spending is supporting the outlook for semiconductor manufacturing equipment. A potential Tesla-SpaceX “Terafab” buildout, along with rising demand for AI chips, advanced packaging and memory, could create additional opportunities for Applied Materials. Tesla-SpaceX Terafab Bet
• Positive Sentiment: Expectations for the August 13 report are favorable: analysts anticipate earnings growth and a potential beat. Applied Materials’ previous quarter exceeded consensus on both earnings and revenue, with revenue up 11.4% year over year, providing a constructive comparison for the upcoming release. Applied Materials Reports Next Week
• Neutral Sentiment: Options markets are pricing a potentially large earnings move, reportedly around 11%. That highlights significant event risk: a strong report and outlook could extend the rally, but merely meeting high expectations may not be enough. Options Market and AMAT’s Earnings Move
• Negative Sentiment: Erste Group Bank lowered its rating on AMAT to Hold. The downgrade adds pressure after the stock’s strong rebound and reinforces concerns that substantial AI optimism is already reflected in the valuation. Applied Materials Rating Lowered to Hold
• Negative Sentiment: Investor Michael Burry’s disclosed short positions in AI-linked semiconductor names, including Applied Materials, have revived concerns about an AI-stock reversal and heightened volatility. As Burry Targets AI Chip Names

Wall Street Analysts Forecast Growth

Several analysts recently weighed in on the company. Needham & Company LLC upped their price objective on Applied Materials from $530.00 to $740.00 and gave the stock a "buy" rating in a research report on Friday, July 10th. Cantor Fitzgerald boosted their target price on Applied Materials from $650.00 to $850.00 and gave the stock an "overweight" rating in a research note on Monday, June 29th. B. Riley Financial increased their target price on shares of Applied Materials from $550.00 to $790.00 and gave the stock a "buy" rating in a report on Friday, June 26th. Deutsche Bank Aktiengesellschaft lifted their price target on shares of Applied Materials from $450.00 to $550.00 and gave the company a "buy" rating in a report on Friday, May 15th. Finally, Seaport Research Partners assumed coverage on shares of Applied Materials in a research report on Monday, May 4th. They set a "buy" rating and a $500.00 price objective for the company. One research analyst has rated the stock with a Strong Buy rating, twenty-six have given a Buy rating and seven have given a Hold rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $603.23.

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.

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