Vaughan Nelson Investment Management L.P. Raises Holdings in Applied Materials, Inc. $AMAT

Key Points

• Vaughan Nelson Investment Management increased its stake in Applied Materials by 16.0% in the first quarter, buying 27,735 additional shares to bring its total holding to 201,505 shares worth about $68.9 million.
• Applied Materials posted strong quarterly results, with EPS of $2.86 and revenue of $7.91 billion, both topping analyst estimates. Revenue also rose 11.4% year over year, and the company issued Q3 guidance above expectations.
• Investor sentiment remains constructive, with multiple analysts raising price targets and more than two dozen rating the stock a Buy. However, some insiders have recently sold shares and the stock’s sharp rally has prompted valuation concerns.

Vaughan Nelson Investment Management L.P. lifted its position in Applied Materials, Inc. (NASDAQ:AMAT - Free Report) by 16.0% during the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund owned 201,505 shares of the manufacturing equipment provider's stock after purchasing an additional 27,735 shares during the quarter. Vaughan Nelson Investment Management L.P.'s holdings in Applied Materials were worth $68,872,000 at the end of the most recent reporting period.

Other hedge funds also recently made changes to their positions in the company. First Trust Advisors LP lifted its position in Applied Materials by 4.9% in the third quarter. First Trust Advisors LP now owns 3,101,772 shares of the manufacturing equipment provider's stock worth $635,057,000 after buying an additional 145,050 shares during the last quarter. Elo Mutual Pension Insurance Co increased its position in Applied Materials by 21.8% during the third quarter. Elo Mutual Pension Insurance Co now owns 96,712 shares of the manufacturing equipment provider's stock valued at $19,801,000 after acquiring an additional 17,288 shares during the last quarter. Worth Asset Management LLC purchased a new stake in shares of Applied Materials in the fourth quarter valued at $1,531,000. World Investment Advisors raised its stake in shares of Applied Materials by 4.5% in the fourth quarter. World Investment Advisors now owns 82,296 shares of the manufacturing equipment provider's stock valued at $21,149,000 after acquiring an additional 3,508 shares during the period. Finally, Avity Investment Management Inc. lifted its holdings in shares of Applied Materials by 1.1% in the 3rd quarter. Avity Investment Management Inc. now owns 223,211 shares of the manufacturing equipment provider's stock worth $45,700,000 after acquiring an additional 2,376 shares during the last quarter. 80.56% of the stock is currently owned by hedge funds and other institutional investors.

More Applied Materials News

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

Applied Materials Price Performance

Shares of AMAT stock opened at $617.11 on Monday. Applied Materials, Inc. has a twelve month low of $154.46 and a twelve month high of $638.90. 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 fifty day simple moving average of $451.05 and a two-hundred day simple moving average of $365.67. The stock has a market capitalization of $489.96 billion, a price-to-earnings ratio of 57.94, a P/E/G ratio of 1.72 and a beta of 1.67.

Applied Materials (NASDAQ:AMAT - Get Free Report) last announced its quarterly earnings results on Thursday, May 14th. The manufacturing equipment provider reported $2.86 EPS for the quarter, beating the consensus estimate of $2.68 by $0.18. The firm had revenue of $7.91 billion for the quarter, compared to analyst estimates of $7.68 billion. Applied Materials had a return on equity of 36.97% and a net margin of 29.31%.The business's revenue for the quarter was up 11.4% on a year-over-year basis. 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. On average, analysts predict that Applied Materials, Inc. will post 12.1 EPS for the current fiscal year.

Applied Materials Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Thursday, August 20th will be issued a dividend of $0.53 per share. This represents a $2.12 annualized dividend and a yield of 0.3%. The ex-dividend date is Thursday, August 20th. Applied Materials's dividend payout ratio is presently 19.91%.

Analysts Set New Price Targets

A number of analysts recently weighed in on AMAT shares. Raymond James Financial set a $650.00 price objective on shares of Applied Materials in a research report on Wednesday, June 10th. Wall Street Zen upgraded Applied Materials from a "hold" rating to a "buy" rating in a research report on Saturday, May 23rd. Seaport Research Partners began coverage on Applied Materials in a research note on Monday, May 4th. They set a "buy" rating and a $500.00 target price on the stock. Argus increased their price target on Applied Materials from $420.00 to $500.00 and gave the stock a "buy" rating in a report on Tuesday, May 19th. Finally, Bank of America increased their price target on Applied Materials from $465.00 to $540.00 and gave the stock a "buy" rating in a report on Friday, May 15th. Twenty-seven equities research 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 currently has an average rating of "Moderate Buy" and a consensus target price of $489.16.

Insider Buying and Selling at Applied Materials

In other Applied Materials news, insider Prabu G. Raja sold 50,000 shares of the firm's stock in a transaction dated Thursday, June 4th. The shares were sold at an average price of $505.28, for a total transaction of $25,264,000.00. Following the transaction, the insider owned 356,642 shares of the company's stock, valued at approximately $180,204,069.76. This trade represents a 12.30% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Thomas J. Iannotti sold 9,250 shares of the business's stock in a transaction dated 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 sale, the director owned 40,559 shares of the company's stock, valued at approximately $24,326,071.43. This represents a 18.57% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 189,767 shares of company stock worth $107,769,409. 0.30% of the stock is currently owned by company insiders.

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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