Kinetic Partners Management LP Cuts Holdings in Applied Materials, Inc. $AMAT

Kinetic Partners Management LP lowered its stake in Applied Materials, Inc. (NASDAQ:AMAT) by 47.3% during the second quarter, Holdings Channel.com reports. The firm owned 43,700 shares of the manufacturing equipment provider’s stock after selling 39,200 shares during the quarter. Applied Materials accounts for about 0.8% of Kinetic Partners Management LP’s portfolio, making the stock its 28th largest position. Kinetic Partners Management LP’s holdings in Applied Materials were worth $31,595,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds have also made changes to their positions in the company. Cornerstone Financial Management LLC purchased a new position in Applied Materials in the fourth quarter worth approximately $25,000. Wilkerson Advisory Group LLC purchased a new stake in shares of Applied Materials in the 4th quarter valued at approximately $26,000. Harborfront Financial Group LLC acquired a new stake in shares of Applied Materials in the 2nd quarter valued at $27,000. Financial Freedom LLC purchased a new stake in shares of Applied Materials during the 1st quarter worth $28,000. Finally, Joseph Group Capital Management purchased a new stake in shares of Applied Materials during the 4th quarter worth $31,000. 80.56% of the stock is owned by institutional investors and hedge funds.

Analyst Ratings Changes

Several equities analysts recently commented on the company. Raymond James Financial set a $650.00 target price on Applied Materials in a report on Wednesday, June 10th. HC Wainwright set a $850.00 price target on Applied Materials in a report on Monday, June 29th. Wolfe Research upped their price objective on Applied Materials from $500.00 to $550.00 and gave the stock an “outperform” rating in a research report on Friday, May 15th. Truist Financial set a $575.00 price objective on Applied Materials in a report on Thursday, May 28th. Finally, Morgan Stanley cut their target price on Applied Materials from $646.00 to $642.00 and set an “equal weight” rating on the stock in a research report on Friday, August 14th. One investment analyst has rated the stock with a Strong Buy rating, twenty-seven have issued a Buy rating and five have issued a Hold rating to the company’s stock. Based on data from MarketBeat, Applied Materials currently has an average rating of “Moderate Buy” and a consensus price target of $657.76.

Applied Materials News Roundup

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

• Positive Sentiment: Qualcomm executive joins the board: Applied Materials appointed Qualcomm CFO and COO Akash Palkhiwala as a director and Audit Committee member. His semiconductor-industry, finance and operating experience could strengthen the board as AMAT targets growth in advanced logic, memory and AI infrastructure. Applied Materials Appoints Akash Palkhiwala to Board of Directors
• Positive Sentiment: AI buildout supports earnings momentum: Recent coverage highlights AMAT’s record quarter-over-quarter revenue increase, with quarterly revenue of $9.12 billion, up 25% year over year, and non-GAAP earnings per share of $3.50, up 41%. Demand is being driven by advanced DRAM, high-bandwidth memory, leading-edge logic and advanced packaging. The AI Buildout Is Turning Applied Materials Into A Profit Machine
• Positive Sentiment: Services business remains healthy: AMAT’s Applied Global Services segment reported record revenue and expanding margins, supported by subscription services, parts demand and increased semiconductor-fab utilization. This recurring revenue stream may help cushion equipment-cycle volatility. AMAT’s AGS Business Gains Momentum
• Neutral Sentiment: Analyst upside remains substantial: The average Wall Street price target implies roughly 35% potential upside, although targets are estimates and AMAT’s elevated valuation makes further gains dependent on continued earnings growth. Does Applied Materials Have the Potential to Rally?
• Negative Sentiment: China exposure is a key overhang: New Chinese immersion DUV lithography capabilities and tighter export controls raise concerns about domestic competition and reduced access to China, a significant AMAT market. Applied Materials’ China Problem Is Getting Worse
• Negative Sentiment: CFO stock sale adds a minor sentiment concern: CFO Brice Hill sold 7,500 shares worth approximately $3.6 million, reducing his holdings by 5.51%. The transaction does not change AMAT’s fundamentals but may weigh modestly on investor sentiment. SEC Insider Transaction Filing

Applied Materials Price Performance

Shares of NASDAQ:AMAT opened at $482.36 on Friday. Applied Materials, Inc. has a 12 month low of $154.46 and a 12 month high of $739.67. The firm has a market capitalization of $382.80 billion, a P/E ratio of 41.58, a P/E/G ratio of 1.03 and a beta of 1.61. The company has a debt-to-equity ratio of 0.20, a current ratio of 2.42 and a quick ratio of 1.79. The company’s fifty day moving average price is $553.91 and its 200 day moving average price is $456.73.

Applied Materials (NASDAQ:AMAT) last released its quarterly earnings data on Thursday, August 13th. The manufacturing equipment provider reported $3.50 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.40 by $0.10. The company had revenue of $9.12 billion during the quarter, compared to the consensus estimate of $8.99 billion. Applied Materials had a net margin of 30.05% and a return on equity of 38.02%. Applied Materials’s revenue for the quarter was up 24.8% on a year-over-year basis. During the same quarter in the prior year, the firm posted $2.48 earnings per share. Applied Materials has set its Q4 2026 guidance at 3.820-4.220 EPS. As a group, sell-side analysts predict that Applied Materials, Inc. will post 12.73 earnings per share for the current fiscal year.

Applied Materials Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Thursday, August 20th will be given a $0.53 dividend. The ex-dividend date of this dividend is Thursday, August 20th. This represents a $2.12 dividend on an annualized basis and a dividend yield of 0.4%. Applied Materials’s dividend payout ratio is 18.28%.

Insider Activity

In other news, SVP Timothy M. Deane sold 8,621 shares of the stock in a transaction that occurred on Monday, June 15th. The stock was sold at an average price of $590.76, for a total value of $5,092,941.96. Following the completion of the sale, the senior vice president directly owned 134,631 shares of the company’s stock, valued at approximately $79,534,609.56. This represents a 6.02% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, SVP Omkaram Nalamasu sold 24,263 shares of the firm’s stock in a transaction that occurred 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 transaction, the senior vice president owned 146,916 shares in the company, valued at approximately $87,184,361.88. This trade represents a 14.17% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 284,192 shares of company stock worth $172,625,209 over the last ninety days. 0.30% of the stock is owned by corporate insiders.

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.