TD Waterhouse Canada Inc. Boosts Stock Position in Applied Materials, Inc. $AMAT

Key Points

• TD Waterhouse Canada increased its Applied Materials stake by 17.5% in the second quarter, holding 120,779 shares valued at approximately $87.3 million. Institutional investors collectively own 80.56% of AMAT.
• Analysts remain broadly bullish, with a “Moderate Buy” consensus, 27 Buy ratings and a consensus price target of $658.45. Applied Materials also exceeded quarterly expectations, reporting $3.50 in EPS and $9.12 billion in revenue, up 24.8% year over year.
• The company declared a quarterly dividend of $0.53 per share, while insiders have recently sold substantial holdings, including CEO Gary Dickerson’s sale of 71,727 shares. Valuation and recent stock declines remain key risks despite strong AI-related demand prospects.

TD Waterhouse Canada Inc. increased its stake in shares of Applied Materials, Inc. (NASDAQ:AMAT - Free Report) by 17.5% during the second quarter, according to the company in its most recent disclosure with the SEC. The institutional investor owned 120,779 shares of the manufacturing equipment provider's stock after buying an additional 17,980 shares during the quarter. TD Waterhouse Canada Inc.'s holdings in Applied Materials were worth $87,323,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds also recently added to or reduced their stakes in AMAT. JFS Wealth Advisors LLC increased its stake in shares of Applied Materials by 4.3% in the 2nd quarter. JFS Wealth Advisors LLC now owns 409 shares of the manufacturing equipment provider's stock worth $296,000 after acquiring an additional 17 shares during the last quarter. Innovative Asset Advisors Group LLC raised its holdings in shares of Applied Materials by 2.1% during the 2nd quarter. Innovative Asset Advisors Group LLC now owns 961 shares of the manufacturing equipment provider's stock worth $695,000 after acquiring an additional 20 shares during the period. Stonebridge Financial Group LLC boosted its position in shares of Applied Materials by 2.1% during the 2nd quarter. Stonebridge Financial Group LLC now owns 1,003 shares of the manufacturing equipment provider's stock valued at $725,000 after acquiring an additional 21 shares during the last quarter. N.E.W. Advisory Services LLC grew its holdings in shares of Applied Materials by 5.9% in the second quarter. N.E.W. Advisory Services LLC now owns 377 shares of the manufacturing equipment provider's stock valued at $273,000 after purchasing an additional 21 shares during the period. Finally, IMG Wealth Management Inc. grew its holdings in shares of Applied Materials by 13.0% in the second quarter. IMG Wealth Management Inc. now owns 183 shares of the manufacturing equipment provider's stock valued at $132,000 after purchasing an additional 21 shares during the period. Institutional investors and hedge funds own 80.56% of the company's stock.

Analyst Ratings Changes

A number of equities analysts have commented on AMAT shares. JPMorgan Chase & Co. lifted their target price on shares of Applied Materials from $515.00 to $660.00 and gave the stock an "overweight" rating in a research note on Friday, August 14th. Wells Fargo & Company raised their price target on shares of Applied Materials from $715.00 to $740.00 and gave the stock an "overweight" rating in a report on Friday, June 26th. Zacks Research upgraded Applied Materials from a "hold" rating to a "strong-buy" rating in a report on Wednesday, July 1st. William Blair started coverage on Applied Materials in a research note on Tuesday, August 11th. They set a "market perform" rating for the company. Finally, 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, August 14th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-seven have given a Buy rating and five have assigned a Hold rating to the company's stock. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus price target of $658.45.

Applied Materials Price Performance

Applied Materials stock opened at $435.91 on Friday. The company's 50 day simple moving average is $536.69 and its 200-day simple moving average is $460.63. 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, Inc. has a 1 year low of $155.40 and a 1 year high of $739.67. The company has a market capitalization of $345.94 billion, a price-to-earnings ratio of 37.58, a price-to-earnings-growth ratio of 1.22 and a beta of 1.60.

Applied Materials (NASDAQ:AMAT - Get Free Report) last posted its quarterly earnings data on Thursday, August 13th. The manufacturing equipment provider reported $3.50 earnings per share for the quarter, topping analysts' consensus estimates 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 analysts' expectations of $8.99 billion. During the same quarter last year, the company posted $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. As a group, equities research analysts expect that Applied Materials, Inc. will post 12.76 earnings per share for the current year.

Applied Materials Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Thursday, August 20th will be given a dividend of $0.53 per share. This represents a $2.12 annualized dividend and a dividend yield of 0.5%. The ex-dividend date is Thursday, August 20th. Applied Materials's dividend payout ratio (DPR) is currently 18.28%.

Insider Buying and Selling at Applied Materials

In related news, CEO Gary Dickerson sold 71,727 shares of the 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 approximately $1,006,503,625. This represents a 4.06% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Thomas Iannotti sold 9,250 shares of the firm's stock in a transaction dated 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 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 SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 231,692 shares of company stock valued at $146,114,059. Corporate insiders own 0.30% of the company's stock.

More 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?

Applied Materials 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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