Mackenzie Financial Corp recently made a significant strategic move, reducing its stake in Applied Materials, Inc. (NASDAQ:AMAT) by a notable 19.5% during the first fiscal quarter. This divestment, as detailed in their latest Form 13F filing with the Securities and Exchange Commission, saw the institutional investor offloading 38,584 shares, leaving them with 159,724 shares of the prominent manufacturing equipment provider, valued at an impressive $23,179,000 at the close of the reporting period.
This adjustment by Mackenzie Financial is not an isolated incident in the institutional investment landscape concerning Applied Materials. Several other prominent hedge funds have also recalibrated their positions. Eagle Capital Management LLC notably increased its holdings by 1.8% in the fourth quarter, now commanding 16,004 shares worth $2,603,000. Similarly, Brighton Jones LLC bolstered its stake by 28.0%, holding 12,674 shares valued at $2,061,000, while CIBC Private Wealth Group LLC slightly grew its position by 1.1% to 25,448 shares, valued at $4,504,000. Furthermore, new positions were initiated by Tradewinds LLC. and Headlands Technologies LLC, adding approximately $209,000 and $2,270,000 worth of shares, respectively.
The collective activity of these major players underscores the substantial institutional interest in Applied Materials, with a remarkable 80.56% of the company’s stock currently held by institutional investors and hedge funds. This high level of institutional ownership often signifies a degree of confidence in the company’s long-term prospects, though individual adjustments warrant close observation for shifts in sentiment.
Equities analysts have also been actively re-evaluating Applied Materials, issuing a series of updated reports and price targets. Barclays recently elevated its price target from $160.00 to $170.00 while maintaining an “equal weight” rating. In contrast, Stifel Nicolaus and B. Riley both lowered their targets to $195.00 and $215.00 respectively, though both retained “buy” ratings. Wells Fargo & Company, on the other hand, increased its price objective to $215.00 with an “overweight” rating, and Raymond James Financial reaffirmed an “outperform” rating, adjusting its objective down to $200.00.
The broader analyst sentiment, according to data from MarketBeat, paints a picture of cautious optimism. Applied Materials currently holds a consensus rating of “Moderate Buy,” supported by nine “hold” ratings and seventeen “buy” recommendations from various investment analysts. The consensus target price for the stock stands at $205.17, indicating potential upside based on current market valuations.
From a market performance perspective, Applied Materials shares opened at $189.39, navigating a 52-week range between a low of $123.74 and a high of $215.70. The stock’s recent trading activity shows a fifty-day moving average of $179.07 and a 200-day moving average of $166.88, suggesting a positive trend over the medium to long term. With a market capitalization of $151.99 billion, the company boasts a PE ratio of 23.04, a P/E/G ratio of 2.10, and a beta of 1.69, reflecting its valuation and volatility relative to the broader market. The company also demonstrates strong financial health with a quick ratio of 1.76, a current ratio of 2.46, and a manageable debt-to-equity ratio of 0.29.
Applied Materials’ latest quarterly earnings report on May 15th showcased robust financial performance. The manufacturing equipment provider surpassed analyst expectations, reporting $2.39 earnings per share (EPS) against a consensus estimate of $2.31. While the company’s revenue of $7.10 billion slightly missed analyst predictions of $7.12 billion, it still marked a solid 6.8% increase compared to the same quarter last year. The quarter also highlighted an impressive net margin of 24.06% and a strong return on equity of 40.15%, underscoring efficient operations and profitability. Analysts now anticipate Applied Materials, Inc. to post 9.38 EPS for the current fiscal year.
Shareholders can also look forward to a forthcoming quarterly dividend, scheduled for payment on Thursday, September 11th. Investors on record by Thursday, August 21st, will receive a $0.46 dividend per share. This translates to an annualized dividend of $1.84, offering a yield of 0.97% based on current prices. Applied Materials’ dividend payout ratio currently stands at 22.38%, indicating a sustainable return of capital to shareholders.
In other company news, CAO Adam Sanders executed a sale of 562 shares on June 24th at an average price of $178.60, totaling $100,373.20. Following this transaction, Sanders directly holds 5,300 shares, valued at $946,580, representing a 9.59% reduction in his direct ownership. This insider activity, while a small percentage of total shares, is routinely disclosed via SEC filings. Applied Materials, Inc. itself is a global leader engaged in providing manufacturing equipment, services, and software across the semiconductor, display, and related industries, operating through its Semiconductor Systems, Applied Global Services, and Display and Adjacent Markets segments.
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