Key Points
- CEO Gary Dickerson sold 20,000 shares of Applied Materials for about $14.7 million at an average price of $735.22, trimming his direct stake by 1.23% while still holding more than 1.59 million shares.
- Applied Materials continues to report strong fundamentals, including Q2 earnings of $2.86 per share versus $2.68 expected and revenue of $7.91 billion, with revenue up 11.4% year over year.
- The company also announced a quarterly dividend of $0.53 per share, payable September 10, and analysts remain mostly constructive, with several price target increases and a consensus Moderate Buy rating.
Applied Materials, Inc. (NASDAQ:AMAT - Get Free Report) CEO Gary Dickerson sold 20,000 shares of the stock in a transaction on Tuesday, June 30th. The stock was sold at an average price of $735.22, for a total transaction of $14,704,400.00. Following the completion of the sale, the chief executive officer directly owned 1,599,843 shares of the company's stock, valued at $1,176,236,570.46. The trade was a 1.23% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link.
Applied Materials Stock Performance
NASDAQ:AMAT opened at $650.91 on Thursday. The firm's fifty day simple moving average is $491.34 and its 200 day simple moving average is $386.97. The company has a current ratio of 2.51, a quick ratio of 1.80 and a debt-to-equity ratio of 0.22. Applied Materials, Inc. has a twelve month low of $154.46 and a twelve month high of $739.67. The firm has a market capitalization of $516.80 billion, a price-to-earnings ratio of 61.12, a PEG ratio of 2.01 and a beta of 1.56.
Applied Materials (NASDAQ:AMAT - Get Free Report) last announced its quarterly earnings results on Thursday, May 14th. The manufacturing equipment provider reported $2.86 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.68 by $0.18. Applied Materials had a return on equity of 36.97% and a net margin of 29.31%.The firm had revenue of $7.91 billion during the quarter, compared to the consensus estimate of $7.68 billion. During the same period in the prior year, the firm earned $2.39 EPS. The firm's quarterly revenue was up 11.4% compared to the same quarter last year. Applied Materials has set its Q3 2026 guidance at 3.160-3.560 EPS. As a group, equities research analysts expect that Applied Materials, Inc. will post 12.11 earnings per share for the current fiscal year.
Applied Materials Announces Dividend
The business also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Thursday, August 20th will be paid a $0.53 dividend. The ex-dividend date is Thursday, August 20th. This represents a $2.12 dividend on an annualized basis and a dividend yield of 0.3%. Applied Materials's dividend payout ratio (DPR) is 19.91%.
Hedge Funds Weigh In On Applied Materials
Large investors have recently modified their holdings of the stock. Cornerstone Financial Management LLC bought a new stake in Applied Materials in the fourth quarter valued at about $25,000. Wilkerson Advisory Group LLC bought a new position in Applied Materials during the 4th quarter worth approximately $26,000. Financial Freedom LLC bought a new position in Applied Materials during the 1st quarter worth approximately $28,000. Highline Wealth Partners LLC grew its position in shares of Applied Materials by 48.7% in the 4th quarter. Highline Wealth Partners LLC now owns 116 shares of the manufacturing equipment provider's stock worth $30,000 after acquiring an additional 38 shares in the last quarter. Finally, Joseph Group Capital Management acquired a new position in shares of Applied Materials in the 4th quarter worth approximately $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: Analysts remained constructive on Applied Materials, with Erste Group raising FY2026 and FY2027 EPS estimates and Cantor Fitzgerald lifting its price target to $850 while keeping an Overweight rating.
- Positive Sentiment: Recent coverage highlighted Applied Materials as a major beneficiary of AI-driven chip spending, with the stock hitting all-time highs and posting its best monthly rally since 1975, supported by stronger earnings expectations and improved sentiment across semiconductor equipment names.
- Neutral Sentiment: Broader market commentary noted that chip stocks were the main laggard even as most equities moved higher, suggesting sector rotation rather than company-specific fundamentals may have pressured AMAT.
- Negative Sentiment: Technical analysts warned that Applied Materials had become extremely overbought and could be due for a reversal after its steep surge, which may have contributed to profit-taking.
- Negative Sentiment: CEO Gary E. Dickerson disclosed two stock sales totaling more than 78,000 shares over June 29-30, a move that can weigh on sentiment even though he still retains a very large stake.
Analyst Ratings Changes
Several equities analysts recently commented on the company. Wall Street Zen raised Applied Materials from a "hold" rating to a "buy" rating in a research report on Saturday, May 23rd. Morgan Stanley reaffirmed an "equal weight" rating and issued a $502.00 price objective (up from $454.00) on shares of Applied Materials in a research report on Friday, May 15th. Sanford C. Bernstein reiterated an "outperform" rating and set a $525.00 price objective on shares of Applied Materials in a research note on Friday, May 15th. Barclays boosted their target price on shares of Applied Materials from $500.00 to $590.00 and gave the stock an "overweight" rating in a research report on Thursday, June 11th. Finally, Stifel Nicolaus set a $530.00 target price on shares of Applied Materials in a research note on Friday, May 15th. Twenty-seven analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the company. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $553.56.
View Our Latest Stock Report on AMAT
About Applied Materials
(
Get Free Report)
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.
Further Reading
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