Cullinan Associates Inc. has decreased its stake in Applied Materials, Inc. (NASDAQ: AMAT) by 2.9% during the third quarter of 2023. According to a recent disclosure submitted to the Securities and Exchange Commission (SEC), the firm now holds 61,974 shares after selling 1,849 shares in that period. The value of these holdings was reported at approximately $12,689,000.
Other institutional investors have also recently adjusted their positions in Applied Materials. Marquette Asset Management LLC significantly increased its investment, raising its holdings by 150% to a total of 125 shares valued at $26,000 after acquiring an additional 75 shares. Additionally, Manning & Napier Advisors LLC entered a new position estimated at around $31,000 in the same quarter. Other firms, including Maseco LLP and Financial Gravity Companies Inc., also bought new stakes, each valued at roughly $30,000 to $32,000. Currently, institutional investors and hedge funds collectively own 80.56% of Applied Materials stock.
Insider Transactions and Market Performance
In related developments, insider trading activity has been observed recently. On December 1, Adam Sanders, the Chief Accounting Officer, sold 609 shares at an average price of $255.53, totaling approximately $155,617.77. Following this sale, Sanders holds 4,413 shares valued at about $1,127,653.89, representing a 12.13% reduction in his ownership. Similarly, Teri A. Little, Senior Vice President, sold 4,000 shares on November 25 for around $952,960.00, reducing her stake by 4.53%.
Over the past three months, insiders have sold a total of 8,609 shares, amounting to approximately $2,044,898. Currently, company insiders control just 0.24% of Applied Materials stock.
Applied Materials recently reported its quarterly earnings results on November 13, indicating a $2.17 earnings per share (EPS), surpassing analysts’ expectations of $2.11 by $0.06. The company’s revenue for the quarter reached $6.80 billion, exceeding the consensus estimate of $6.68 billion. Although this figure represents a 3.5% decline year-over-year, the company has provided guidance for Q1 2026, projecting EPS between $1.980 and $2.380.
Dividends and Analyst Ratings
Applied Materials also announced a quarterly dividend of $0.46, set to be paid on March 12, 2024. Shareholders on record as of February 19 will receive this dividend, which translates to an annualized total of $1.84, yielding 0.6%. The company maintains a dividend payout ratio of 21.20%.
Market analysts have expressed positive sentiment towards Applied Materials. Recently, Bank of America raised its price target from $300 to $350 while maintaining a “buy” rating. Goldman Sachs reaffirmed a “buy” rating with a price target of $310. Other firms, such as Needham & Company LLC and Citigroup, have also issued favorable ratings with varying price targets.
In total, 21 equities research analysts have rated Applied Materials with a “buy” rating, while 13 have assigned a “hold” rating, leading to an average rating of “Moderate Buy” and a consensus target price of $256.59.
Applied Materials, headquartered in Santa Clara, California, is a leading supplier of equipment, services, and software used in the manufacturing of semiconductor chips and advanced materials. The company’s technology enables the production of integrated circuits and display panels, playing a crucial role in the electronics supply chain.
