WT Asset Management Ltd Takes Position in Applied Materials, Inc. $AMAT

Key Points

• WT Asset Management initiated a significant Applied Materials position in the second quarter, purchasing 371,798 shares valued at approximately $268.8 million. AMAT now represents about 5.3% of the firm’s portfolio, while institutional investors and hedge funds own 80.56% of the stock.
• Applied Materials reported strong quarterly results, with EPS of $3.50 and revenue of $9.12 billion, exceeding analyst estimates; revenue increased 24.8% year over year. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $659.83.
• Despite strong AI-related demand prospects and constructive analyst views, sentiment faces pressure from insider selling and a broader chip-equipment selloff. Company insiders sold 277,820 shares worth about $169.5 million during the last quarter, while AMAT recently traded below its 50-day moving average.

WT Asset Management Ltd bought 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 13F filing with the Securities and Exchange Commission. The firm bought 371,798 shares of the manufacturing equipment provider's stock, valued at approximately $268,810,000. Applied Materials comprises approximately 5.3% of WT Asset Management Ltd's holdings, making the stock its 8th biggest holding.

Other hedge funds have also added to or reduced their stakes in the company. Capital Research Global Investors boosted its holdings in shares of Applied Materials by 119.8% in the 4th quarter. Capital Research Global Investors now owns 32,707,049 shares of the manufacturing equipment provider's stock valued at $8,405,458,000 after purchasing an additional 17,829,377 shares in the last quarter. Norges Bank bought a new stake in shares of Applied Materials during the 4th quarter worth $2,858,543,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its stake in Applied Materials by 617.2% in the third quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 9,129,483 shares of the manufacturing equipment provider's stock valued at $1,869,170,000 after buying an additional 7,856,576 shares in the last quarter. Auto Owners Insurance Co boosted its stake in Applied Materials by 25,824.4% in the fourth quarter. Auto Owners Insurance Co now owns 3,370,167 shares of the manufacturing equipment provider's stock valued at $86,610,000 after buying an additional 3,357,167 shares in the last quarter. Finally, Coatue Management LLC grew its position in Applied Materials by 78.7% in the fourth quarter. Coatue Management LLC now owns 5,984,332 shares of the manufacturing equipment provider's stock valued at $1,537,913,000 after acquiring an additional 2,635,284 shares during the last quarter. 80.56% of the stock is owned by institutional investors and hedge funds.

Insider Activity at Applied Materials

In related news, SVP Timothy M. Deane sold 8,621 shares of the business's stock in a transaction on Monday, June 15th. The shares were sold at an average price of $590.76, for a total value of $5,092,941.96. Following the sale, the senior vice president owned 134,631 shares of the company's stock, valued at $79,534,609.56. The trade was a 6.02% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, SVP Omkaram Nalamasu sold 24,263 shares of the business's stock in a transaction on Tuesday, June 16th. The stock was sold at an average price of $593.43, for a total transaction 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 approximately $87,184,361.88. This represents a 14.17% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 277,820 shares of company stock valued at $169,538,434 in the last quarter. Insiders own 0.30% of the company's stock.

Applied Materials Stock Performance

NASDAQ:AMAT opened at $496.21 on Friday. The stock's 50-day moving average is $564.17 and its 200-day moving average is $450.76. 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 2.42, a quick ratio of 1.79 and a debt-to-equity ratio of 0.20. The stock has a market cap of $393.97 billion, a P/E ratio of 42.78, a price-to-earnings-growth ratio of 1.06 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 38.02%. 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 12.73 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 18.28%.

Wall Street Analyst Weigh In

Several research analysts have commented on the company. Argus set a $600.00 target price on Applied Materials in a research note on Tuesday. Weiss Ratings restated a "buy (b-)" rating on shares of Applied Materials in a research note on Wednesday, June 24th. Sanford C. Bernstein lifted their price target on shares of Applied Materials from $675.00 to $700.00 and gave the company an "outperform" rating in a report on Friday, August 14th. Raymond James Financial set a $650.00 price objective on shares of Applied Materials in a research report on Wednesday, June 10th. Finally, Mizuho increased their price objective on shares of Applied Materials from $540.00 to $650.00 and gave the company an "outperform" rating in a research note on Wednesday, July 8th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-seven have given a Buy rating and five have issued a Hold rating to the stock. Based on data from MarketBeat.com, Applied Materials has an average rating of "Moderate Buy" and a consensus price target of $659.83.

Trending Headlines about Applied Materials

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

• Positive Sentiment: AI-driven demand outlook remains strong. JPMorgan maintained an Overweight rating and said Applied Materials’ semiconductor-systems revenue could grow about 40% this year, with AI-related spending expected to account for roughly 80% of chip-equipment demand. Applied Materials Sees Years Of AI-Fueled Growth Ahead
• Positive Sentiment: Product launches support advanced packaging and memory growth. New equipment aimed at AI-related chip production, advanced packaging and high-bandwidth memory could benefit Applied Materials as memory manufacturers increase capacity. Can Applied Materials Sustain Its Growth Amid AI-Driven Demand?
• Positive Sentiment: Analyst support remains constructive. Berenberg issued a Buy rating, while recent research coverage and a Zacks Strong Buy momentum ranking provide additional near-term support for AMAT. Applied Materials Receives a Buy from Berenberg Bank
• Neutral Sentiment: Recent results were strong but already appear reflected in expectations. Applied Materials reported record quarterly revenue of $9.12 billion, up 24.8% year over year, and exceeded earnings and revenue estimates. Its above-consensus next-quarter guidance has not prevented the stock from declining, indicating investors may be focused on valuation, positioning and broader sector concerns. Applied Materials Delivered a Record Quarter
• Negative Sentiment: Institutional selling is weighing on sentiment. Paul Tudor Jones liquidated his common-stock position and reportedly increased his put exposure. Dr. Michael Burry is also betting against AMAT, creating headline risk even though these trades do not necessarily represent a broad rejection of AI investment. Paul Tudor Jones Liquidated His Applied Materials Stake
• Negative Sentiment: Chip-equipment stocks are facing a sector-wide selloff. Applied Materials, Lam Research and Teradyne have fallen together, raising concerns about semiconductor-cycle timing, customer capital-expenditure plans and whether AI expectations have become too optimistic. What Is Prompting the Selloff in Chip Equipment 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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