Applied Materials, Inc.

(NASDAQ Global Select)
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Bullish +72

Dimensional Fund Advisors LP Has $974.50 Million Holdings in Applied ...

AI-generated analysis

πŸ“‰ Dimensional Fund Advisors LP cut its AMAT holdings by 2.0% in Q1, reducing shares to 2,852,647 worth approximately $974.5 million.

πŸ“ˆ Evolve Private Wealth LLC increased its stake by 59.0%, while Worth Asset Management and World Investment Advisors established or grew new positions.

πŸ’° Insider Thomas J. Iannotti sold 9,250 shares for $5.55 million, and Prabu G. Raja sold 10,000 shares for $6.34 million in June.

πŸ“Š Applied Materials beat Q2 earnings estimates with $7.91 billion in revenue and $2.86 EPS, surpassing the consensus of $7.68 billion and $2.68 respectively.

πŸš€ Revenue grew 11.4% year-over-year to $7.91 billion, driven by demand for semiconductor manufacturing equipment and software.

🎯 Q3 2026 earnings guidance is set between $3.16 and $3.56 per share, indicating continued operational strength.

🏦 JPMorgan Chase raised its price target to $515.00 with an 'overweight' rating, while Susquehanna lifted its objective to $900.00.

πŸ’΅ The company declared a quarterly dividend of $0.53 per share, payable on September 10th to shareholders of record on August 20th.

πŸ“ˆ Analyst consensus remains bullish with an average target price of $593.84 and a 'Moderate Buy' rating from MarketBeat.

πŸ›οΈ The firm maintains a robust balance sheet with a current ratio of 2.51, quick ratio of 1.80, and low debt-to-equity of 0.22.

Bullish Signals
  • Applied Materials reported revenue of $7.91 billion, beating the consensus estimate of $7.68 billion by $230 million.
  • The company posted EPS of $2.86, significantly exceeding the analyst consensus estimate of $2.68 by $0.18.
  • Net margin expanded to 29.31% and return on equity reached 36.97%, demonstrating strong profitability.
  • Revenue grew 11.4% year-over-year, indicating sustained demand for the company's semiconductor equipment.
  • JPMorgan Chase raised its price target from $400 to $515 and upgraded the rating to 'overweight'.
  • Susquehanna Financial lifted its price objective from $575 to $900 with a 'positive' rating.
  • Deutsche Bank increased its target price to $550 and maintained a 'buy' rating on the stock.
  • Erste Group Bank upgraded its rating from 'hold' to 'buy', reflecting growing institutional confidence.
  • The average analyst price target of $593.84 suggests significant upside potential from recent trading levels.
  • Insiders sold shares at prices above the current market, indicating confidence in the stock's valuation.
Risk Factors
  • Dimensional Fund Advisors LP reduced its position by 2.0%, selling 57,101 shares during the first quarter.
  • Director Thomas J. Iannotti sold 9,250 shares representing an 18.57% decrease in his personal holdings.
  • Insider Prabu G. Raja sold 10,000 shares, reducing his direct ownership by 2.80% of his position.
  • Total insider selling reached 278,088 shares worth $169.65 million in the last quarter, though at elevated prices.
Full Analysis
Dimensional Fund Advisors LP reduced its stake in Applied Materials, Inc. (NASDAQ:AMAT) by 2.0% in the first quarter, selling 57,101 shares to hold approximately 2.85 million shares valued at $974.5 million. While Dimensional decreased its position, other institutional investors like Evolve Private Wealth LLC and World Investment Advisors increased their holdings, with insider ownership remaining low at 0.30% following recent sales by directors Thomas J. Iannotti and Prabu G. Raja. Applied Materials reported strong quarterly financial performance in the last earnings announcement, beating consensus estimates with revenue of $7.91 billion and EPS of $2.86. The company posted a net margin of 29.31% and returned on equity of 36.97%, with revenue growing 11.4% year-over-year. Analysts anticipate full-year EPS of 12.14, while the company has provided Q3 2026 guidance ranging between $3.16 and $3.56 per share. The stock received significant analyst support with major firms like JPMorgan Chase, Susquehanna, and Deutsche Bank raising price targets and issuing buy or overweight ratings. The average analyst target price is currently set at $593.84, compared to a recent trading range between the 50-day moving average of $533.12 and the 200-day average of $414.11. The company also declared a quarterly dividend of $0.53 per share payable on September 10th.