Tobam Purchases 4,616 Shares of Applied Materials, Inc. $AMAT

Key Points

• Tobam increased its stake in Applied Materials by 671.9% in the fourth quarter, buying 4,616 additional shares to bring its total holding to 5,303 shares worth about $1.36 million.
• Institutional ownership remains very high, with several other hedge funds and investors also adding or initiating positions in AMAT during recent quarters.
• Applied Materials is benefiting from strong AI-related optimism and bullish analyst actions, including higher price targets and upgrades, even as some commentary warns the stock may be looking expensive after its sharp rally.

Tobam grew its position in Applied Materials, Inc. (NASDAQ:AMAT - Free Report) by 671.9% in the 4th quarter, according to its most recent disclosure with the SEC. The fund owned 5,303 shares of the manufacturing equipment provider's stock after buying an additional 4,616 shares during the period. Tobam's holdings in Applied Materials were worth $1,363,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors have also recently made changes to their positions in AMAT. Cornerstone Financial Management LLC bought a new stake in shares of Applied Materials during the fourth quarter valued at approximately $25,000. Redmont Wealth Advisors LLC bought a new position in Applied Materials in the 3rd quarter valued at approximately $26,000. Wilkerson Advisory Group LLC bought a new position in Applied Materials in the 4th quarter valued at approximately $26,000. Highline Wealth Partners LLC boosted its stake in Applied Materials by 48.7% during the 4th quarter. Highline Wealth Partners LLC now owns 116 shares of the manufacturing equipment provider's stock valued at $30,000 after purchasing an additional 38 shares during the last quarter. Finally, Joseph Group Capital Management purchased a new stake in Applied Materials during the 4th quarter valued at $31,000. Institutional investors own 80.56% of the company's stock.

Applied Materials News Summary

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

• Positive Sentiment: Applied Materials’ AGS services business is being highlighted as a long-term growth engine, with AI-enabled services and expanding margins potentially creating more recurring revenue. Can AMAT's AGS Business Become a Long-Term Growth Driver?
• Positive Sentiment: Shares are benefiting from renewed enthusiasm around AI demand and strong earnings momentum, with articles noting the stock has been hitting new highs after solid results and upbeat guidance. AI Demand, Earnings Send Applied Materials to New Highs
• Positive Sentiment: Applied Materials launched SENZ with Qualcomm and EssilorLuxottica for AI eyewear, reinforcing investor hopes that the company can expand beyond core chipmaking tools into adjacent growth markets. Applied Materials (AMAT) Launches SENZ With Qualcomm And EssilorLuxottica For AI Eyewear
• Positive Sentiment: Analyst sentiment remains constructive, with higher price targets such as Citi’s $710 view helping fuel the rally by suggesting AI demand can justify the premium valuation. Applied Materials (AMAT) Stock Rallies 8.75% on Citi’s Bullish $710 Price Target
• Neutral Sentiment: Several insiders, including CEO Gary Dickerson and SVP Omkaram Nalamasu, sold shares this week; while the sales were small relative to their remaining holdings, they can weigh on sentiment. Why Applied Materials Insiders Sold $65 Million Worth of Stock
• Neutral Sentiment: Some commentary warns the stock looks expensive after a sharp year-to-date surge, with valuation comparisons to the dot-com era potentially prompting caution despite the strong fundamental backdrop. Applied Materials stock valuation and performance

Wall Street Analyst Weigh In

Several research firms have recently weighed in on AMAT. Susquehanna boosted their price target on Applied Materials from $435.00 to $500.00 and gave the stock a "positive" rating in a research note on Thursday, April 9th. Wall Street Zen raised Applied Materials from a "hold" rating to a "buy" rating in a research report on Saturday, May 23rd. Cantor Fitzgerald lifted their price objective on Applied Materials from $575.00 to $650.00 and gave the stock an "overweight" rating in a report on Wednesday, June 10th. TD Cowen boosted their target price on Applied Materials from $450.00 to $525.00 and gave the stock a "buy" rating in a research report on Friday, May 15th. Finally, Royal Bank Of Canada upped their target price on shares of Applied Materials from $500.00 to $520.00 and gave the company an "outperform" rating in a research note on Friday, May 15th. Twenty-seven analysts have rated the stock with a Buy rating and eight have given a Hold rating to the company's stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $489.16.

Applied Materials Price Performance

NASDAQ AMAT opened at $617.11 on Friday. The company has a 50-day moving average price of $451.05 and a 200-day moving average price of $364.90. 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. The firm has a market capitalization of $489.96 billion, a P/E ratio of 57.94, a PEG ratio of 1.72 and a beta of 1.67.

Applied Materials (NASDAQ:AMAT - Get Free Report) last posted its quarterly earnings data on Thursday, May 14th. The manufacturing equipment provider reported $2.86 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.68 by $0.18. The company had revenue of $7.91 billion for the quarter, compared to the consensus estimate of $7.68 billion. Applied Materials had a net margin of 29.31% and a return on equity of 36.97%. The firm's revenue was up 11.4% compared to the same quarter last year. During the same quarter last year, the firm posted $2.39 earnings per share. Applied Materials has set its Q3 2026 guidance at 3.160-3.560 EPS. Equities research analysts anticipate that Applied Materials, Inc. will post 12.1 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. This represents a $2.12 annualized dividend and a dividend yield of 0.3%. The ex-dividend date is Thursday, August 20th. Applied Materials's dividend payout ratio (DPR) is currently 19.91%.

Insider Transactions at Applied Materials

In related news, Director Thomas J. Iannotti sold 9,250 shares of Applied Materials stock in a transaction on Tuesday, June 16th. The stock was sold at an average price of $599.77, for a total transaction of $5,547,872.50. Following the transaction, the director directly owned 40,559 shares in the company, valued at approximately $24,326,071.43. The trade was a 18.57% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, SVP Omkaram Nalamasu sold 24,263 shares of the business's stock in a transaction dated Tuesday, June 16th. The shares were sold at an average price of $593.43, for a total value of $14,398,392.09. Following the sale, the senior vice president directly owned 146,916 shares of the company's stock, valued at $87,184,361.88. This represents a 14.17% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 189,767 shares of company stock worth $107,769,409 over the last three months. 0.30% of the stock is currently owned by insiders.

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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