Suncoast Equity Management Takes Position in Applied Materials, Inc. $AMAT

Key Points

• Suncoast Equity Management initiated a roughly $28.7 million position in Applied Materials during the second quarter, making AMAT about 3.6% of the fund’s holdings. Institutional investors collectively own 80.56% of the stock.
• Applied Materials reported quarterly revenue of $9.12 billion and EPS of $3.50, beating analyst estimates, with revenue up 24.8% year over year. Management issued fiscal fourth-quarter EPS guidance of $3.82–$4.22 and revenue guidance of approximately $9.8–$10.8 billion.
• Analysts remain broadly positive, with the stock receiving a “Moderate Buy” consensus rating and an average price target of $640.17, though insiders sold approximately $169.7 million of shares in the latest quarter and investors remain concerned about growth expectations, competition and margins.

Suncoast Equity Management purchased a new position in shares of Applied Materials, Inc. (NASDAQ:AMAT - Free Report) in the second quarter, according to the company in its most recent Form 13F filing with the SEC. The fund purchased 39,743 shares of the manufacturing equipment provider's stock, valued at approximately $28,734,000. Applied Materials makes up about 3.6% of Suncoast Equity Management's holdings, making the stock its 12th largest position.

Several other institutional investors and hedge funds have also modified their holdings of AMAT. Cornerstone Financial Management LLC acquired a new stake in Applied Materials in the fourth quarter valued at about $25,000. Wilkerson Advisory Group LLC acquired a new position in Applied Materials during the fourth quarter worth about $26,000. Financial Freedom LLC bought a new position in shares of Applied Materials in the first quarter worth about $28,000. Joseph Group Capital Management bought a new position in shares of Applied Materials in the fourth quarter worth about $31,000. Finally, Dogwood Wealth Management LLC boosted its stake in shares of Applied Materials by 52.4% in the 4th quarter. Dogwood Wealth Management LLC now owns 128 shares of the manufacturing equipment provider's stock valued at $33,000 after purchasing an additional 44 shares in the last quarter. 80.56% of the stock is currently owned by institutional investors.

Insider Activity at Applied Materials

In related news, SVP Omkaram Nalamasu sold 24,263 shares of the stock in a transaction on Tuesday, June 16th. The stock was sold at an average price of $593.43, for a total value 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 $87,184,361.88. This represents a 14.17% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, SVP Timothy M. Deane sold 8,621 shares of the firm's stock in a transaction on 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 directly owned 134,631 shares of the company's stock, valued at approximately $79,534,609.56. This represents a 6.02% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 278,088 shares of company stock valued at $169,654,805 in the last quarter. Insiders own 0.30% of the company's stock.

Applied Materials Stock Performance

NASDAQ:AMAT opened at $507.18 on Friday. The stock's 50-day moving average is $564.15 and its 200-day moving average is $444.89. Applied Materials, Inc. has a 1-year low of $154.46 and a 1-year high of $739.67. The company has a current ratio of 2.51, a quick ratio of 1.80 and a debt-to-equity ratio of 0.22. The stock has a market cap of $402.68 billion, a P/E ratio of 43.72, a price-to-earnings-growth ratio of 1.28 and a beta of 1.61.

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, beating analysts' consensus estimates of $3.40 by $0.10. Applied Materials had a net margin of 30.05% and a return on equity of 39.58%. The business had revenue of $9.12 billion during the quarter, compared to analyst estimates of $8.99 billion. During the same quarter last year, the business earned $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. Equities research analysts anticipate that Applied Materials, Inc. will post 12.48 earnings per share for the current year.

Applied Materials Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Thursday, August 20th will be paid a dividend of $0.53 per share. The ex-dividend date of this dividend is Thursday, August 20th. This represents a $2.12 annualized dividend and a dividend yield of 0.4%. Applied Materials's dividend payout ratio (DPR) is presently 19.91%.

Analysts Set New Price Targets

Several equities research analysts recently issued reports on AMAT shares. Seaport Research Partners reaffirmed a "buy" rating and set a $575.00 price target on shares of Applied Materials in a report on Friday. Argus increased their price objective on shares of Applied Materials from $420.00 to $500.00 and gave the company a "buy" rating in a research note on Tuesday, May 19th. Needham & Company LLC restated a "buy" rating and issued a $740.00 target price on shares of Applied Materials in a research report on Friday. Bank of America decreased their target price on shares of Applied Materials from $720.00 to $650.00 and set a "buy" rating on the stock in a research note on Friday. Finally, Sanford C. Bernstein upped their price target on shares of Applied Materials from $675.00 to $700.00 and gave the stock an "outperform" rating in a report on Friday. One investment 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 data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $640.17.

Trending Headlines about 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.

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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