Stock Traders Purchase Large Volume of Put Options on Applied Materials (NASDAQ:AMAT)

Key Points

• Investors purchased a significant volume of put options on Applied Materials, with 45,723 options bought, marking a 67% increase from the typical volume.
• Chief Accounting Officer Adam Sanders sold 562 shares of Applied Materials for over $100,000, decreasing his ownership by 9.59%.
• Applied Materials recently reported earnings that exceeded analyst expectations, with a quarterly profit of $2.48 per share on revenues of $7.30 billion, and provided guidance for future earnings.

Applied Materials, Inc. (NASDAQ:AMAT - Get Free Report) saw some unusual options trading activity on Thursday. Stock investors bought 45,723 put options on the stock. Thisisanincreaseofapproximately67% compared to the typical volume of 27,428 put options.

Insider Buying and Selling

In related news, CAO Adam Sanders sold 562 shares of Applied Materials stock in a transaction on Tuesday, June 24th. The stock was sold at an average price of $178.60, for a total transaction of $100,373.20. Following the completion of the sale, the chief accounting officer owned 5,300 shares of the company's stock, valued at approximately $946,580. This trade represents a 9.59% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. 0.24% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Applied Materials

A number of hedge funds have recently bought and sold shares of AMAT. Runnymede Capital Advisors Inc. lifted its holdings in Applied Materials by 972.2% in the first quarter. Runnymede Capital Advisors Inc. now owns 193 shares of the manufacturing equipment provider's stock valued at $28,000 after acquiring an additional 175 shares during the period. Smallwood Wealth Investment Management LLC purchased a new stake in Applied Materials in the 1st quarter worth $29,000. Maseco LLP bought a new stake in Applied Materials during the second quarter valued at about $30,000. Clal Insurance Enterprises Holdings Ltd raised its holdings in Applied Materials by 435.0% during the first quarter. Clal Insurance Enterprises Holdings Ltd now owns 214 shares of the manufacturing equipment provider's stock valued at $31,000 after acquiring an additional 174 shares during the period. Finally, Activest Wealth Management lifted its position in shares of Applied Materials by 5,325.0% in the first quarter. Activest Wealth Management now owns 217 shares of the manufacturing equipment provider's stock valued at $31,000 after acquiring an additional 213 shares in the last quarter. Hedge funds and other institutional investors own 80.56% of the company's stock.

Applied Materials Stock Down 0.7%

NASDAQ:AMAT traded down $1.12 on Thursday, reaching $159.84. 8,288,450 shares of the stock traded hands, compared to its average volume of 7,444,949. The company has a current ratio of 2.46, a quick ratio of 1.76 and a debt-to-equity ratio of 0.29. The company has a market capitalization of $128.27 billion, a price-to-earnings ratio of 19.05, a PEG ratio of 2.31 and a beta of 1.70. Applied Materials has a 12 month low of $123.74 and a 12 month high of $215.70. The company's fifty day simple moving average is $183.59 and its 200 day simple moving average is $166.36.

Applied Materials (NASDAQ:AMAT - Get Free Report) last posted its quarterly earnings results on Thursday, August 14th. The manufacturing equipment provider reported $2.48 EPS for the quarter, beating analysts' consensus estimates of $2.36 by $0.12. Applied Materials had a net margin of 23.88% and a return on equity of 41.31%. The firm had revenue of $7.30 billion for the quarter, compared to analysts' expectations of $7.21 billion. During the same quarter in the prior year, the company posted $2.12 earnings per share. The business's revenue for the quarter was up 7.7% on a year-over-year basis. Applied Materials has set its Q4 2025 guidance at 1.910-2.310 EPS. Equities analysts predict that Applied Materials will post 9.38 EPS for the current fiscal year.

Applied Materials Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, September 11th. Investors of record on Thursday, August 21st will be issued a $0.46 dividend. This represents a $1.84 annualized dividend and a yield of 1.2%. The ex-dividend date is Thursday, August 21st. Applied Materials's dividend payout ratio (DPR) is presently 21.93%.

Analysts Set New Price Targets

AMAT has been the subject of several research reports. Summit Insights lowered shares of Applied Materials from a "buy" rating to a "hold" rating in a research report on Friday, August 15th. Cantor Fitzgerald cut their price objective on Applied Materials from $220.00 to $200.00 and set an "overweight" rating for the company in a report on Friday, August 15th. Barclays raised their price objective on Applied Materials from $160.00 to $170.00 and gave the company an "equal weight" rating in a report on Monday, July 28th. Morgan Stanley boosted their target price on Applied Materials from $169.00 to $172.00 and gave the stock an "equal weight" rating in a research report on Friday, August 15th. Finally, UBS Group reduced their price target on shares of Applied Materials from $185.00 to $180.00 and set a "neutral" rating on the stock in a research report on Friday, August 15th. Seventeen research analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $193.88.

Applied Materials Company Profile

Applied Materials, Inc engages in the provision of manufacturing equipment, services, and software to the semiconductor, display, and related industries. The company operates through three segments: Semiconductor Systems, Applied Global Services, and Display and Adjacent Markets. The Semiconductor Systems segment develops, manufactures, and sells various manufacturing equipment that is used to fabricate semiconductor chips or integrated circuits.

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