Cullinan Associates Inc. has reduced its holdings in Applied Materials, Inc. (NASDAQ: AMAT) by 2.9% during the third quarter of 2023, as reported in a recent filing with the Securities and Exchange Commission (SEC). The firm now owns 61,974 shares of the semiconductor manufacturing equipment provider, following a sale of 1,849 shares during the period. As of the latest filing, Cullinan’s investment in Applied Materials is valued at approximately $12.69 million.
Other institutional investors have also shifted their positions in Applied Materials. Notably, Marquette Asset Management LLC increased its stake by an impressive 150%, acquiring a total of 125 shares valued at around $26,000 after purchasing an additional 75 shares. Similarly, Manning & Napier Advisors LLC has acquired a new position in the company valued at approximately $31,000.
Overall, institutional investors and hedge funds own 80.56% of Applied Materials’ stock, indicating strong support from major financial entities.
Insider Transactions and Stock Performance
Amid these changes, insider trading activity has also been notable. Adam Sanders, the chief accounting officer at Applied Materials, sold 609 shares on December 1, 2023, at an average price of $255.53, totaling $155,617.77. Following this transaction, Sanders holds 4,413 shares, valued at approximately $1.13 million, marking a 12.13% decrease in his ownership.
In a separate transaction, Teri A. Little, senior vice president, sold 4,000 shares on November 25, 2023, for a total value of $952,960. After the sale, her remaining shares are worth approximately $20.1 million, reflecting a 4.53% reduction in her stake. To date, insiders have sold a total of 8,609 shares worth approximately $2.04 million, with insiders owning just 0.24% of the total stock.
Recent Earnings and Dividend Announcements
On November 13, 2023, Applied Materials reported its quarterly earnings, revealing an earnings per share (EPS) of $2.17, surpassing analysts’ expectations of $2.11 by $0.06. The company recorded a revenue of $6.8 billion, exceeding the consensus estimate of $6.68 billion. However, this represents a 3.5% decline from the previous year’s revenue. The company anticipates an EPS range of $1.980 to $2.380 for the first quarter of 2026, with analysts projecting a current-year EPS of $9.38.
In addition, Applied Materials has announced a quarterly dividend of $0.46 per share, scheduled for payment on March 12, 2024. Investors on record as of February 19 will receive this dividend, amounting to an annualized total of $1.84 and yielding 0.6%. The company’s dividend payout ratio currently stands at 21.20%.
Recent analyst reports have generally reflected positive sentiment towards Applied Materials. For instance, Bank of America raised its price target from $300 to $350, maintaining a “Buy” rating. Similarly, other firms, including Goldman Sachs and Needham & Company LLC, have reaffirmed their positive outlook, setting targets of $310 and $260 respectively.
With ongoing interest from institutional investors, and a strong performance in recent earnings, Applied Materials continues to be a focal point in the semiconductor manufacturing sector. The company’s innovative technologies and market strategies are likely to play a crucial role in its future growth trajectory.
