PCM Encore LLC Raises Stake in Applied Materials, Inc. $AMAT

PCM Encore LLC raised its holdings in Applied Materials, Inc. (NASDAQ:AMAT) by 43.3% in the 2nd quarter, according to its most recent 13F filing with the SEC. The fund owned 3,423 shares of the manufacturing equipment provider’s stock after acquiring an additional 1,035 shares during the period. PCM Encore LLC’s holdings in Applied Materials were worth $2,475,000 at the end of the most recent reporting period.

Other large investors have also modified their holdings of the company. JFS Wealth Advisors LLC grew its stake in shares of Applied Materials by 4.3% during the 2nd quarter. JFS Wealth Advisors LLC now owns 409 shares of the manufacturing equipment provider’s stock valued at $296,000 after buying an additional 17 shares during the period. Innovative Asset Advisors Group LLC raised its holdings in shares of Applied Materials by 2.1% during the 2nd quarter. Innovative Asset Advisors Group LLC now owns 961 shares of the manufacturing equipment provider’s stock valued at $695,000 after buying an additional 20 shares during the period. Stonebridge Financial Group LLC boosted its position in Applied Materials by 2.1% in the 2nd quarter. Stonebridge Financial Group LLC now owns 1,003 shares of the manufacturing equipment provider’s stock valued at $725,000 after buying an additional 21 shares during the last quarter. N.E.W. Advisory Services LLC boosted its stake in shares of Applied Materials by 5.9% during the 2nd quarter. N.E.W. Advisory Services LLC now owns 377 shares of the manufacturing equipment provider’s stock valued at $273,000 after buying an additional 21 shares during the last quarter. Finally, IMG Wealth Management Inc. lifted its position in shares of Applied Materials by 13.0% during the second quarter. IMG Wealth Management Inc. now owns 183 shares of the manufacturing equipment provider’s stock worth $132,000 after purchasing an additional 21 shares during the last quarter. 80.56% of the stock is currently owned by hedge funds and other institutional investors.

Key Applied Materials News

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

• Positive Sentiment: AI demand supports the long-term outlook. JPMorgan reiterated an Overweight rating and estimates semiconductor-systems revenue could grow about 40% this year, with AI-related investment accounting for roughly 80% of chip-equipment demand. Applied Materials Sees Years Of AI-Fueled Growth Ahead
• Positive Sentiment: Advanced packaging and memory opportunities remain catalysts. New equipment launches are strengthening Applied Materials’ position in advanced packaging as demand for high-bandwidth memory (HBM) and semiconductor manufacturing capacity expands. Can Applied Materials Sustain Its Growth Amid AI-Driven Demand?
• Positive Sentiment: Brokerage coverage remains favorable. Berenberg issued a Buy rating, while broader analyst recommendations continue to point toward adding AMAT to portfolios. However, investors should note that consensus ratings can be overly optimistic because they are based on sell-side opinions. Applied Materials Receives a Buy from Berenberg Bank
• Neutral Sentiment: Fundamentals were stronger than expected, but the market response was weak. Applied Materials reported record fiscal third-quarter revenue of $9.12 billion, up 25% year over year, and exceeded consensus EPS and revenue estimates. Its above-consensus outlook was apparently insufficient to overcome high expectations and valuation concerns. Applied Materials Delivered a Record Quarter. The Stock Fell Anyway
• Negative Sentiment: High-profile bearish positioning is weighing on sentiment. Paul Tudor Jones reportedly liquidated his AMAT common-stock position and increased his put exposure, while Dr. Michael Burry is also betting against the shares. These trades raise concerns about semiconductor-cycle risks and whether future foundry capital spending will meet already elevated expectations. Paul Tudor Jones Liquidated His Applied Materials Stake

Applied Materials Price Performance

NASDAQ AMAT opened at $492.32 on Monday. Applied Materials, Inc. has a one year low of $154.46 and a one year high of $739.67. The firm has a market cap of $390.71 billion, a PE ratio of 42.44, a price-to-earnings-growth ratio of 1.06 and a beta of 1.61. The company has a debt-to-equity ratio of 0.20, a current ratio of 2.42 and a quick ratio of 1.79. The stock’s 50 day simple moving average is $562.67 and its 200 day simple moving average is $451.92.

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

Applied Materials Dividend Announcement

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

Insider Buying and Selling

In other news, Director Thomas J. Iannotti sold 9,250 shares of the firm’s stock in a transaction on Tuesday, June 16th. The stock was sold at an average price of $599.77, for a total value of $5,547,872.50. Following the transaction, the director directly owned 40,559 shares in the company, valued at $24,326,071.43. This trade represents a 18.57% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, SVP Omkaram Nalamasu sold 24,263 shares of the firm’s stock in a transaction dated Tuesday, June 16th. The stock was sold at an average price of $593.43, for a total value of $14,398,392.09. Following the transaction, the senior vice president owned 146,916 shares in the company, valued at approximately $87,184,361.88. This trade represents a 14.17% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 277,820 shares of company stock worth $169,538,434 over the last 90 days. 0.30% of the stock is currently owned by corporate insiders.

Wall Street Analyst Weigh In

AMAT has been the subject of several analyst reports. Morgan Stanley reduced their price target on shares of Applied Materials from $646.00 to $642.00 and set an “equal weight” rating for the company in a report on Friday, August 14th. Wells Fargo & Company upped their target price on Applied Materials from $715.00 to $740.00 and gave the stock an “overweight” rating in a research report on Friday, June 26th. Wall Street Zen raised Applied Materials from a “hold” rating to a “buy” rating in a research note on Saturday, August 15th. HSBC restated a “buy” rating and set a $683.00 target price on shares of Applied Materials in a research note on Monday, July 27th. Finally, Raymond James Financial set a $650.00 price target on shares of Applied Materials in a research report on Wednesday, June 10th. One investment analyst has rated the stock with a Strong Buy rating, twenty-seven have assigned a Buy rating and five have given a Hold rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $659.83.

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.