Sculptor Capital LP Cuts Stock Holdings in Applied Materials, Inc. $AMAT

Key Points

• Sculptor Capital sharply reduced its Applied Materials stake by 87.1% in the second quarter, selling 259,500 shares and retaining 38,300 shares valued at approximately $27.7 million. Institutional investors collectively own 80.56% of AMAT.
• Applied Materials reported strong quarterly results, with revenue rising 24.8% year over year to $9.12 billion and EPS reaching $3.50, above analyst expectations. Growth is being supported by AI-related demand, advanced memory and logic chips, and a healthy services business.
• Analysts maintain a generally positive outlook, with a “Moderate Buy” consensus and an average price target of $657.76, though China exposure, export controls and elevated valuation remain key risks.

Sculptor Capital LP lowered its holdings in Applied Materials, Inc. (NASDAQ:AMAT - Free Report) by 87.1% in the 2nd quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor owned 38,300 shares of the manufacturing equipment provider's stock after selling 259,500 shares during the quarter. Sculptor Capital LP's holdings in Applied Materials were worth $27,691,000 at the end of the most recent reporting period.

Other hedge funds have also recently modified their holdings of the company. Harborfront Financial Group LLC purchased a new position in Applied Materials during the second quarter valued at approximately $27,000. BOK Financial Private Wealth Inc. purchased a new stake in Applied Materials during the second quarter worth $41,000. Financial Freedom LLC bought a new stake in Applied Materials during the 1st quarter valued at $28,000. Elevation Wealth Partners LLC boosted its position in 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 in the last quarter. Finally, Cornerstone Financial Management LLC purchased a new position in shares of Applied Materials in the 4th quarter valued at $25,000. Hedge funds and other institutional investors own 80.56% of the company's stock.

Applied Materials News Roundup

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

• Positive Sentiment: Qualcomm executive joins the board: Applied Materials appointed Qualcomm CFO and COO Akash Palkhiwala as a director and Audit Committee member. His semiconductor-industry, finance and operating experience could strengthen the board as AMAT targets growth in advanced logic, memory and AI infrastructure. Applied Materials Appoints Akash Palkhiwala to Board of Directors
• Positive Sentiment: AI buildout supports earnings momentum: Recent coverage highlights AMAT’s record quarter-over-quarter revenue increase, with quarterly revenue of $9.12 billion, up 25% year over year, and non-GAAP earnings per share of $3.50, up 41%. Demand is being driven by advanced DRAM, high-bandwidth memory, leading-edge logic and advanced packaging. The AI Buildout Is Turning Applied Materials Into A Profit Machine
• Positive Sentiment: Services business remains healthy: AMAT’s Applied Global Services segment reported record revenue and expanding margins, supported by subscription services, parts demand and increased semiconductor-fab utilization. This recurring revenue stream may help cushion equipment-cycle volatility. AMAT's AGS Business Gains Momentum
• Neutral Sentiment: Analyst upside remains substantial: The average Wall Street price target implies roughly 35% potential upside, although targets are estimates and AMAT’s elevated valuation makes further gains dependent on continued earnings growth. Does Applied Materials Have the Potential to Rally?
• Negative Sentiment: China exposure is a key overhang: New Chinese immersion DUV lithography capabilities and tighter export controls raise concerns about domestic competition and reduced access to China, a significant AMAT market. Applied Materials' China Problem Is Getting Worse
• Negative Sentiment: CFO stock sale adds a minor sentiment concern: CFO Brice Hill sold 7,500 shares worth approximately $3.6 million, reducing his holdings by 5.51%. The transaction does not change AMAT’s fundamentals but may weigh modestly on investor sentiment. SEC Insider Transaction Filing

Applied Materials Stock Performance

Shares of AMAT opened at $482.36 on Friday. The company has a current ratio of 2.42, a quick ratio of 1.79 and a debt-to-equity ratio of 0.20. The firm has a market cap of $382.80 billion, a PE ratio of 41.58, a P/E/G ratio of 1.03 and a beta of 1.61. Applied Materials, Inc. has a 12 month low of $154.46 and a 12 month high of $739.67. The stock has a fifty day moving average price of $553.91 and a 200-day moving average price of $456.73.

Applied Materials (NASDAQ:AMAT - Get Free Report) last announced its earnings results on Thursday, August 13th. The manufacturing equipment provider reported $3.50 earnings per share for the quarter, topping the consensus estimate of $3.40 by $0.10. Applied Materials had a return on equity of 38.02% and a net margin of 30.05%.The firm had revenue of $9.12 billion for the quarter, compared to the consensus estimate of $8.99 billion. During the same period in the previous year, the business earned $2.48 EPS. The firm's revenue for the quarter was up 24.8% on a year-over-year basis. Applied Materials has set its Q4 2026 guidance at 3.820-4.220 EPS. Equities research analysts predict that Applied Materials, Inc. will post 12.73 earnings per share for the current fiscal year.

Applied Materials Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Thursday, August 20th will be issued a $0.53 dividend. The ex-dividend date of this dividend is Thursday, August 20th. This represents a $2.12 dividend on an annualized basis and a dividend yield of 0.4%. Applied Materials's dividend payout ratio (DPR) is currently 18.28%.

Analysts Set New Price Targets

Several research analysts have recently commented on the company. Erste Group Bank lowered Applied Materials from a "buy" rating to a "hold" rating in a research report on Wednesday, August 5th. Jefferies Financial Group lifted their target price on Applied Materials from $510.00 to $770.00 and gave the company a "buy" rating in a research note on Friday, June 26th. Craig Hallum boosted their target price on shares of Applied Materials from $530.00 to $585.00 and gave the stock a "buy" rating in a report on Friday, August 14th. UBS Group set a $675.00 price target on shares of Applied Materials and gave the company a "buy" rating in a research report on Friday, August 14th. Finally, William Blair started coverage on shares of Applied Materials in a report on Tuesday, August 11th. They issued a "market perform" rating on the stock. One equities research analyst has rated the stock with a Strong Buy rating, twenty-seven have assigned a Buy rating and five have given a Hold rating to the company. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $657.76.

Insiders Place Their Bets

In other news, SVP Omkaram Nalamasu sold 24,263 shares of Applied Materials stock in a transaction on Tuesday, June 16th. The shares were sold at an average price of $593.43, for a total transaction of $14,398,392.09. Following the completion of the sale, the senior vice president directly owned 146,916 shares in the company, valued at approximately $87,184,361.88. The trade was a 14.17% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, SVP Timothy M. Deane sold 8,621 shares of the business's stock in a transaction on Monday, June 15th. The shares were 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 trade represents 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 284,192 shares of company stock valued at $172,625,209. Corporate insiders own 0.30% of the company's stock.

About Applied Materials

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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