Compass Financial Management LLC Invests $2.05 Million in Applied Materials, Inc. $AMAT

Compass Financial Management LLC acquired a new position in shares of Applied Materials, Inc. (NASDAQ:AMAT) in the second quarter, HoldingsChannel reports. The fund acquired 2,839 shares of the manufacturing equipment provider’s stock, valued at approximately $2,053,000.

Several other hedge funds have also recently added to or reduced their stakes in AMAT. Cornerstone Financial Management LLC acquired a new position in shares of Applied Materials during the 4th quarter worth about $25,000. Wilkerson Advisory Group LLC acquired 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 approximately $27,000. Financial Freedom LLC bought a new position in Applied Materials during the 1st quarter worth approximately $28,000. Finally, Joseph Group Capital Management acquired a new position in Applied Materials during the fourth quarter valued at approximately $31,000. Institutional investors and hedge funds own 80.56% of the company’s stock.

Analyst Upgrades and Downgrades

Several research firms have weighed in on AMAT. Zacks Research upgraded shares of Applied Materials from a “hold” rating to a “strong-buy” rating in a report on Wednesday, July 1st. Jefferies Financial Group upped their price objective on shares of Applied Materials from $510.00 to $770.00 and gave the company a “buy” rating in a research report on Friday, June 26th. Royal Bank Of Canada raised their price objective on Applied Materials from $520.00 to $600.00 and gave the stock an “outperform” rating in a research note on Friday, August 14th. Argus set a $600.00 target price on Applied Materials in a report on Tuesday, August 18th. Finally, Cantor Fitzgerald reissued an “overweight” rating on shares of Applied Materials in a research note on Friday, August 14th. One analyst has rated the stock with a Strong Buy rating, twenty-seven have issued a Buy rating and five have given a Hold rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average target price of $657.76.

Key Stories Impacting Applied Materials

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

• Positive Sentiment: Goldman Sachs reportedly named Applied Materials a “top pick,” citing the company’s exposure to the continued buildout of AI infrastructure and chip-manufacturing capacity. Applied Materials Stock Is Named a Top Pick at Goldman Sachs
• Positive Sentiment: Analysts see significant upside after the stock’s decline from its high, with AI-driven semiconductor investment and record quarterly revenue supporting bullish price targets. One report cited an average target near $641, implying roughly 32% potential appreciation from recent levels. Wall Street Sees Rally Despite Decline From Peak
• Positive Sentiment: Applied Materials is viewed as a key beneficiary of AI infrastructure spending because its equipment and engineering solutions are essential to advanced semiconductor manufacturing. Why Investors Should Buy the Dip in AMAT
• Neutral Sentiment: Mizuho lowered its Applied Materials price target from $650 to $590 but retained an “outperform” rating. The reduced target reflects more cautious expectations, while the rating still indicates confidence in the company’s longer-term prospects. Benzinga
• Neutral Sentiment: The reported August short-interest figures show zero shares and a mathematically invalid change, making the data unreliable and unlikely to provide a meaningful trading signal.
• Negative Sentiment: Semiconductor stocks broadly declined as investors reduced risk ahead of NVIDIA’s results, weighing on Applied Materials alongside other chipmakers. Semiconductor Stocks Slide Ahead of NVIDIA Earnings

Applied Materials Trading Down 0.9%

AMAT opened at $480.04 on Wednesday. The stock has a market capitalization of $380.96 billion, a P/E ratio of 41.38, a P/E/G ratio of 1.04 and a beta of 1.61. The company has a current ratio of 2.42, a quick ratio of 1.79 and a debt-to-equity ratio of 0.20. Applied Materials, Inc. has a 12 month low of $154.46 and a 12 month high of $739.67. The firm’s fifty day simple moving average is $558.87 and its 200 day simple moving average is $454.37.

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

Applied Materials Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Thursday, August 20th will be paid a dividend of $0.53 per share. This represents a $2.12 annualized dividend and a dividend yield of 0.4%. The ex-dividend date of this dividend is Thursday, August 20th. Applied Materials’s dividend payout ratio (DPR) is currently 18.28%.

Insider Activity at Applied Materials

In related news, CEO Gary E. Dickerson sold 71,727 shares of the stock in a transaction on Tuesday, June 16th. The shares were sold at an average price of $593.75, for a total transaction of $42,587,906.25. Following the completion of the transaction, the chief executive officer owned 1,695,164 shares in the company, valued at approximately $1,006,503,625. This represents a 4.06% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Thomas J. Iannotti sold 9,250 shares of the firm’s stock in a transaction on Tuesday, June 16th. The shares were sold at an average price of $599.77, for a total transaction of $5,547,872.50. Following the completion of the transaction, the director directly owned 40,559 shares of the company’s stock, valued at approximately $24,326,071.43. This trade represents a 18.57% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 276,692 shares of company stock worth $169,030,834. 0.30% of the stock is currently 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.