Atria Investments Inc has reduced its holdings in Applied Materials, Inc. (NASDAQ: AMAT) by 5.6%, selling 3,382 shares during the third quarter of 2023. According to the firm’s latest 13F filing with the Securities and Exchange Commission (SEC), Atria now owns 57,362 shares of the manufacturing equipment provider, valued at approximately $11,744,000.
Several other institutional investors have also adjusted their positions in Applied Materials. Notably, Marquette Asset Management LLC increased its stake by 150.0%, acquiring an additional 75 shares to reach a total of 125 shares, valued at around $26,000. Other firms, including Manning & Napier Advisors LLC and Guerra Advisors Inc, have recently established new positions in the company, reflecting a broader trend of institutional interest in Applied Materials.
Insider Trading Activity
In addition to institutional shifts, insider trading has seen notable activity. On November 25, Senior Vice President Teri A. Little sold 4,000 shares at an average price of $238.24, totaling $952,960. Following this transaction, Little retained 84,351 shares, valued at approximately $20,095,782.24. This sale represented a 4.53% reduction in her position.
Moreover, Chief Accounting Officer Adam Sanders sold 609 shares on December 1 for around $155,617.77. After this sale, Sanders held 4,413 shares, which are valued at about $1,127,653.89, marking a 12.13% decrease in ownership. Over the past 90 days, company insiders have sold a total of 8,609 shares, worth approximately $2,044,898. Currently, insiders own 0.30% of Applied Materials’ stock.
Financial Overview
As of last Friday, shares of Applied Materials opened at $328.46. The company boasts a market capitalization of $260.71 billion, with a price-to-earnings (P/E) ratio of 37.84 and a beta of 1.70. Applied Materials has maintained a debt-to-equity ratio of 0.32 and exhibits strong liquidity with a current ratio of 2.61.
The company recently reported its earnings results for the first quarter, revealing earnings per share (EPS) of $2.38, surpassing analysts’ expectations of $2.19. Applied Materials generated $7.01 billion in revenue, exceeding forecasts of $6.88 billion. While the revenue reflects a 2.1% decrease year-over-year, the return on equity stood at 39.26%, with a net margin of 24.67%.
Moving forward, the company has set a guidance range for the second quarter of fiscal year 2026 at $2.440 to $2.840 EPS. Analysts predict an average EPS of 9.38 for the current year.
Dividend Announcement and Analyst Ratings
Recently, Applied Materials announced a quarterly dividend of $0.46 per share, payable on March 12. Shareholders of record as of February 19 will be eligible for this dividend, which translates to an annualized payout of $1.84 and a yield of 0.6%. The company’s payout ratio currently stands at 21.20%.
In light of recent financial performance, several analysts have adjusted their price targets for Applied Materials. Wells Fargo & Company raised its target from $290.00 to $350.00, while Morgan Stanley increased its target from $273.00 to $364.00, both maintaining an “overweight” rating. Overall, 24 equity research analysts have given the stock a “Buy” rating, while eight have issued a “Hold” rating, reflecting positive sentiment among market experts.
Applied Materials continues to position itself as a key player in the semiconductor manufacturing sector, and recent financial indicators suggest robust demand for its products and services.
