Cullinan Associates Inc. has decreased its holdings in Applied Materials, Inc. (NASDAQ: AMAT) by 2.9% during the third quarter of 2023. According to a recent filing with the Securities and Exchange Commission (SEC), the firm now owns 61,974 shares after selling 1,849 shares during this period. The value of Cullinan Associates’ holdings in Applied Materials is approximately $12,689,000.
Several institutional investors have also adjusted their positions in Applied Materials. Marquette Asset Management LLC significantly increased its holdings by 150%, acquiring an additional 75 shares for a total of 125 shares, valued at about $26,000. Meanwhile, Manning & Napier Advisors LLC purchased a new position valued at around $31,000. Other notable transactions include Maseco LLP and Financial Gravity Companies Inc., each acquiring new stakes valued close to $30,000, and Howard Hughes Medical Institute, which also invested $32,000 in the company. Currently, institutional investors and hedge funds own approximately 80.56% of Applied Materials’ stock.
Insider Transactions and Recent Sales
In related developments, Applied Materials has seen insider selling activity. Adam Sanders, the Chief Accounting Officer, sold 609 shares on December 1, 2023, for an average price of $255.53, totaling $155,617.77. This transaction reduced his ownership to 4,413 shares, valued at approximately $1,127,653.89. Additionally, Senior Vice President Teri A. Little sold 4,000 shares on November 25, 2023, at an average price of $238.24, amounting to $952,960.00. Following this sale, Little holds 84,351 shares, valued at $20,095,782.24.
In the last three months, insiders have sold a total of 8,609 shares worth $2,044,898, while company insiders now own 0.24% of the stock.
Financial Performance and Outlook
Applied Materials reported its quarterly earnings on November 13, 2023, revealing an earnings per share (EPS) of $2.17, exceeding analysts’ expectations of $2.11 by $0.06. The company also achieved a return on equity of 39.26% and a net margin of 24.67%. Revenue for the quarter reached $6.80 billion, surpassing the consensus estimate of $6.68 billion. In comparison to the same period last year, the revenue decreased by 3.5%.
Looking ahead, Applied Materials has provided guidance for the first quarter of 2026, estimating an EPS range of $1.980 to $2.380. Analysts predict the company will report an EPS of $9.38 for the current year.
The company also declared a quarterly dividend of $0.46 per share, payable on March 12, 2024. Shareholders on record as of February 19, 2024, will be eligible for this dividend, marking an annualized dividend of $1.84 and a yield of 0.6%. The current dividend payout ratio stands at 21.20%.
Market Sentiment and Analyst Ratings
Recent market sentiment toward Applied Materials has been generally positive. Bank of America raised its price target from $300 to $350, maintaining a “buy” rating, which reflects confidence in the company’s potential for growth. Similarly, Susquehanna upgraded its rating, further supporting a favorable consensus among analysts.
Short interest in Applied Materials has also decreased significantly, down by approximately 21% to around 13.96 million shares, indicating reduced short pressure. This decline could be a technical positive for the stock as it moves into the new year.
Analysts’ forecasts continue to point to growth, with twenty-one firms rating the stock as a “buy” and thirteen assigning a “hold” rating, leading to a consensus target price of $256.59.
Founded in Santa Clara, California, Applied Materials, Inc. supplies equipment, services, and software for manufacturing semiconductor chips, flat panel displays, and other advanced materials. The company’s technologies support crucial fabrication steps, underscoring its role in the electronics supply chain.
