Morningstar Investment Management LLC Reduces Holdings in Applied Materials, Inc. $AMAT

Morningstar Investment Management LLC decreased its position in shares of Applied Materials, Inc. (NASDAQ:AMAT) by 57.2% in the 1st quarter, according to its most recent 13F filing with the SEC. The firm owned 14,895 shares of the manufacturing equipment provider’s stock after selling 19,889 shares during the quarter. Morningstar Investment Management LLC’s holdings in Applied Materials were worth $5,091,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also added to or reduced their stakes in the company. Cornerstone Financial Management LLC bought a new position in Applied Materials during the fourth quarter worth about $25,000. Wilkerson Advisory Group LLC purchased a new stake in shares of Applied Materials during the 4th quarter valued at approximately $26,000. Financial Freedom LLC purchased a new stake in shares of Applied Materials during the 1st quarter valued at approximately $28,000. Highline Wealth Partners LLC boosted its holdings in 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 buying an additional 38 shares during the period. Finally, Joseph Group Capital Management purchased a new position in Applied Materials in the 4th quarter valued at approximately $31,000. 80.56% of the stock is currently owned by institutional investors.

Applied Materials Stock Down 4.7%

Shares of NASDAQ:AMAT opened at $536.25 on Friday. The firm has a fifty day moving average price of $544.21 and a two-hundred day moving average price of $423.10. The company has a market cap of $425.76 billion, a price-to-earnings ratio of 50.35, a PEG ratio of 1.43 and a beta of 1.57. The company has a debt-to-equity ratio of 0.22, a current ratio of 2.51 and a quick ratio of 1.80. Applied Materials, Inc. has a one year low of $154.46 and a one year high of $739.67.

Applied Materials (NASDAQ:AMAT) last released its quarterly earnings results on Thursday, May 14th. The manufacturing equipment provider reported $2.86 earnings per share for the quarter, topping the consensus estimate of $2.68 by $0.18. Applied Materials had a net margin of 29.31% and a return on equity of 36.97%. The firm had revenue of $7.91 billion for the quarter, compared to analysts’ expectations of $7.68 billion. During the same quarter in the prior year, the firm posted $2.39 earnings per share. The business’s quarterly revenue was up 11.4% on a year-over-year basis. Applied Materials has set its Q3 2026 guidance at 3.160-3.560 EPS. Analysts anticipate that Applied Materials, Inc. will post 12.14 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 paid a $0.53 dividend. This represents a $2.12 dividend on an annualized basis and a yield of 0.4%. The ex-dividend date is Thursday, August 20th. Applied Materials’s dividend payout ratio is currently 19.91%.

Insiders Place Their Bets

In other news, SVP Omkaram Nalamasu sold 24,263 shares of the business’s stock in a transaction dated 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 transaction, the senior vice president owned 146,916 shares of the company’s stock, valued at approximately $87,184,361.88. The trade was a 14.17% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Prabu G. Raja sold 50,000 shares of the business’s stock in a transaction dated Thursday, June 4th. The stock was sold at an average price of $505.28, for a total value of $25,264,000.00. Following the transaction, the insider directly owned 356,642 shares of the company’s stock, valued at $180,204,069.76. The trade was a 12.30% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 278,088 shares of company stock worth $169,654,805. 0.30% of the stock is owned by corporate insiders.

Analysts Set New Price Targets

Several research firms have issued reports on AMAT. Susquehanna increased their target price on Applied Materials from $575.00 to $900.00 and gave the stock a “positive” rating in a research report on Tuesday, June 30th. Bank of America lifted their price target on Applied Materials from $540.00 to $720.00 and gave the company a “buy” rating in a research report on Tuesday, June 23rd. Wells Fargo & Company boosted their price objective on Applied Materials from $715.00 to $740.00 and gave the company an “overweight” rating in a research note on Friday, June 26th. Truist Financial set a $575.00 price objective on Applied Materials in a report on Thursday, May 28th. Finally, The Goldman Sachs Group lifted their target price on Applied Materials from $390.00 to $520.00 and gave the company a “buy” rating in a report on Friday, May 15th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-seven have issued a Buy rating and six have given a Hold rating to the company’s stock. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $593.84.

Applied Materials News Roundup

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

• Positive Sentiment: Applied Materials is still viewed favorably versus a peer in advanced packaging, with commentary highlighting its AI-related packaging exposure, broad chipmaking portfolio, and high-margin services as reasons it may be a safer long-term bet. AMAT vs. Q: Which Advanced Packaging Stock is a Safer Bet Right Now?
• Positive Sentiment: Analysts and market commentary continue to point to AI-led semiconductor demand, with Applied Materials repeatedly cited as one of the stocks benefiting from ongoing chip investment and stronger equipment spending. Buy These 5 Semiconductor Stocks Charged Up by AI Enthusiasm
• Positive Sentiment: Applied Materials announced it will report fiscal third-quarter 2026 results on August 13, and recent previews suggest analysts expect another double-digit earnings increase, which can support sentiment ahead of the print. What to Expect From Applied Materials’ Next Quarterly Earnings Report
• Neutral Sentiment: The company’s short-interest update appears to be data-noisy, showing zero shares outstanding and no meaningful days-to-cover signal, so it is unlikely to be a real trading driver.
• Neutral Sentiment: Applied Materials remains part of a broader semiconductor sector that is experiencing profit-taking and valuation-driven consolidation after a powerful AI rally, which is weighing on sentiment across the group. Semiconductor Crossroads: Healthy Consolidation or Deeper Repricing?
• Negative Sentiment: The pullback in semiconductor names suggests investors are locking in gains and reassessing high expectations, which is pressuring AMAT along with the rest of the sector despite solid fundamentals.

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.