Willis Investment Counsel Has $22.51 Million Holdings in Applied Materials, Inc. $AMAT

Key Points

• Willis Investment Counsel increased its Applied Materials stake by 17.7% in the second quarter, bringing its holdings to 31,135 shares valued at approximately $22.51 million. Institutional investors collectively own 80.56% of the company.
• Applied Materials reported strong fiscal Q3 results, with revenue up 24.8% year over year to $9.12 billion and EPS of $3.50, while issuing above-consensus fiscal Q4 guidance.
• Despite positive earnings and analyst support, the stock fell 5.1% as investors sought faster growth and clearer margin and competitive advantages. Insiders sold approximately $169.7 million of shares during the quarter.

Willis Investment Counsel raised its holdings in Applied Materials, Inc. (NASDAQ:AMAT - Free Report) by 17.7% in the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 31,135 shares of the manufacturing equipment provider's stock after acquiring an additional 4,686 shares during the period. Willis Investment Counsel's holdings in Applied Materials were worth $22,511,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds also recently modified their holdings of AMAT. Vanguard Group Inc. lifted its stake in Applied Materials by 0.4% in the fourth quarter. Vanguard Group Inc. now owns 76,779,340 shares of the manufacturing equipment provider's stock valued at $19,731,523,000 after buying an additional 330,197 shares in the last quarter. Capital Research Global Investors raised its holdings in shares of Applied Materials by 119.8% during the fourth quarter. Capital Research Global Investors now owns 32,707,049 shares of the manufacturing equipment provider's stock worth $8,405,458,000 after acquiring an additional 17,829,377 shares during the period. Morgan Stanley raised its holdings in shares of Applied Materials by 3.4% during the fourth quarter. Morgan Stanley now owns 11,470,835 shares of the manufacturing equipment provider's stock worth $2,947,891,000 after acquiring an additional 373,012 shares during the period. Norges Bank bought a new stake in Applied Materials in the 4th quarter valued at $2,858,543,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its position in Applied Materials by 17.1% in the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 10,688,232 shares of the manufacturing equipment provider's stock valued at $2,746,769,000 after acquiring an additional 1,558,749 shares in the last quarter. Institutional investors and hedge funds own 80.56% of the company's stock.

Insider Buying and Selling

In other news, 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 transaction of $14,398,392.09. Following the transaction, the senior vice president directly owned 146,916 shares in the company, valued at $87,184,361.88. The trade was a 14.17% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Thomas J. Iannotti sold 9,250 shares of the company'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 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 SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 278,088 shares of company stock worth $169,654,805. Corporate insiders own 0.30% of the company's stock.

Key Stories Impacting 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.

Applied Materials Stock Down 5.1%

NASDAQ:AMAT opened at $507.18 on Friday. The firm has a market capitalization of $402.68 billion, a price-to-earnings ratio of 43.72, a price-to-earnings-growth ratio of 1.28 and a beta of 1.61. Applied Materials, Inc. has a twelve month low of $154.46 and a twelve month high of $739.67. The stock's 50 day moving average price is $564.15 and its two-hundred day moving average price is $444.89. 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 released its quarterly earnings data on Thursday, August 13th. The manufacturing equipment provider reported $3.50 EPS for the quarter, beating the consensus estimate of $3.40 by $0.10. Applied Materials had a return on equity of 39.58% and a net margin of 30.05%.The company had revenue of $9.12 billion during the quarter, compared to the consensus estimate of $8.99 billion. During the same quarter in the prior year, the firm posted $2.48 EPS. The firm's revenue for the quarter was up 24.8% compared to the same quarter last year. Applied Materials has set its Q4 2026 guidance at 3.820-4.220 EPS. Equities research analysts expect that Applied Materials, Inc. will post 12.48 earnings per share for the current fiscal year.

Applied Materials Announces Dividend

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

Analyst Upgrades and Downgrades

A number of equities analysts have issued reports on the company. UBS Group set a $675.00 target price on Applied Materials in a report on Friday. Jefferies Financial Group boosted their price target on Applied Materials from $510.00 to $770.00 and gave the company a "buy" rating in a report on Friday, June 26th. Morgan Stanley reduced their price objective on Applied Materials from $646.00 to $642.00 and set an "equal weight" rating for the company in a research report on Friday. Zacks Research upgraded Applied Materials from a "hold" rating to a "strong-buy" rating in a report on Wednesday, July 1st. Finally, Sanford C. Bernstein lifted their target price on Applied Materials from $675.00 to $700.00 and gave the company an "outperform" rating in a research report on Friday. One equities research analyst has rated the stock with a Strong Buy rating, twenty-seven have assigned a Buy rating and six have given a Hold rating to the company. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average target price of $640.17.

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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