Sit Investment Associates Inc. Reduces Stock Position in Applied Materials, Inc. $AMAT

Key Points

• Sit Investment Associates cut its Applied Materials stake by 6.2% in the fourth quarter, selling 7,210 shares and leaving it with 108,274 shares valued at about $27.8 million.
• Other institutions were active in the stock, with several large funds sharply increasing positions; overall, 80.56% of AMAT is owned by hedge funds and other institutional investors.
• Applied Materials has seen strong analyst support and solid operating results, including Q4 earnings and revenue that beat estimates, while analysts currently rate the stock a Moderate Buy with an average price target of $489.16.

Sit Investment Associates Inc. trimmed its holdings in Applied Materials, Inc. (NASDAQ:AMAT - Free Report) by 6.2% during the fourth quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor owned 108,274 shares of the manufacturing equipment provider's stock after selling 7,210 shares during the period. Sit Investment Associates Inc.'s holdings in Applied Materials were worth $27,825,000 as of its most recent SEC filing.

Several other institutional investors and hedge funds also recently made changes to their positions in AMAT. Capital Research Global Investors boosted its stake in Applied Materials by 119.8% during the 4th 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 acquiring an additional 17,829,377 shares during the last quarter. Norges Bank bought a new stake in shares of Applied Materials in the 4th quarter worth about $2,858,543,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its stake in shares of 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 valued at $1,869,170,000 after purchasing an additional 7,856,576 shares in the last quarter. Ameriprise Financial Inc. raised its stake in shares of Applied Materials by 40.1% in the 3rd quarter. Ameriprise Financial Inc. now owns 12,520,114 shares of the manufacturing equipment provider's stock valued at $2,563,376,000 after purchasing an additional 3,583,751 shares in the last quarter. Finally, Coatue Management LLC bought a new position in shares of Applied Materials during the third quarter worth about $685,684,000. 80.56% of the stock is currently owned by hedge funds and other institutional investors.

Insider Activity at Applied Materials

In other news, Director Thomas J. Iannotti sold 9,250 shares of the business's stock in a transaction on Tuesday, June 16th. The shares were sold at an average price of $599.77, for a total transaction of $5,547,872.50. Following the completion of the transaction, the director owned 40,559 shares of the company's stock, valued at approximately $24,326,071.43. The trade was a 18.57% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, CEO Gary E. Dickerson sold 71,727 shares of the company'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 transaction, the chief executive officer 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. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 189,767 shares of company stock valued at $107,769,409. Company insiders own 0.30% of the company's stock.

Analyst Upgrades and Downgrades

A number of research firms recently commented on AMAT. Needham & Company LLC lifted their price target on Applied Materials from $440.00 to $530.00 and gave the stock a "buy" rating in a research note on Friday, May 15th. Stifel Nicolaus set a $530.00 target price on Applied Materials in a report on Friday, May 15th. B. Riley Financial lifted their target price on Applied Materials from $530.00 to $550.00 and gave the stock a "buy" rating in a research report on Friday, May 15th. Sanford C. Bernstein reiterated an "outperform" rating and issued a $525.00 price target on shares of Applied Materials in a report on Friday, May 15th. Finally, Cantor Fitzgerald upped their price target on Applied Materials from $575.00 to $650.00 and gave the company an "overweight" rating in a research report on Wednesday, June 10th. Twenty-seven research analysts have rated the stock with a Buy rating and eight have given a Hold rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $489.16.

More Applied Materials News

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

• Positive Sentiment: Citi raised its price target on Applied Materials, reinforcing the view that AI infrastructure spending and memory-chip equipment demand should keep driving revenue growth. Applied Materials surges as Citi lifts target on AI demand boom
• Positive Sentiment: Applied Materials launched SENZ, a fully integrated visual system for AI smart glasses, and partnered with EssilorLuxottica and Qualcomm, giving investors a potential new long-term growth avenue. Applied Materials (AMAT) Launches SENZ With Qualcomm And EssilorLuxottica For AI Eyewear
• Positive Sentiment: Recent commentary highlighted Applied Materials as a beneficiary of the AI equipment super-cycle, with strong earnings, robust wafer-fab equipment demand, and favorable analyst sentiment supporting the rally. Applied Materials: The Cheapest Seat On The AI Equipment Super-Cycle

Applied Materials Stock Performance

Shares of AMAT stock opened at $617.11 on Friday. The company has a market cap of $489.96 billion, a P/E ratio of 57.94, a PEG ratio of 1.65 and a beta of 1.67. The business has a 50 day moving average of $446.42 and a two-hundred day moving average of $363.12. Applied Materials, Inc. has a 52 week low of $154.46 and a 52 week high of $638.90. The company has a quick ratio of 1.80, a current ratio of 2.51 and a debt-to-equity ratio of 0.22.

Applied Materials (NASDAQ:AMAT - Get Free Report) last announced its quarterly earnings results on Thursday, May 14th. The manufacturing equipment provider reported $2.86 earnings per share for the quarter, topping analysts' consensus estimates of $2.68 by $0.18. Applied Materials had a return on equity of 36.97% and a net margin of 29.31%.The business had revenue of $7.91 billion for the quarter, compared to analysts' expectations of $7.68 billion. During the same period in the prior year, the firm earned $2.39 EPS. The business's quarterly revenue was up 11.4% on a year-over-year basis. Applied Materials has set its Q3 2026 guidance at 3.160-3.560 EPS. As a group, analysts anticipate that Applied Materials, Inc. will post 12.1 EPS for the current year.

Applied Materials Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders 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 yield of 0.3%. The ex-dividend date is Thursday, August 20th. Applied Materials's dividend payout ratio (DPR) is presently 19.91%.

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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