Investment firm Lbp Am Sa significantly increased its holdings in Applied Materials, Inc. (NASDAQ: AMAT) during the third quarter of 2023, acquiring an additional 117,257 shares. This purchase raised its overall position by 744.6%, bringing its total shares to 133,005. As of the end of the reporting period, these holdings were valued at approximately $27.2 million.
The surge in Lbp Am Sa’s investment aligns with a broader trend among institutional investors, many of whom have adjusted their stakes in Applied Materials. For instance, State Street Corp raised its stake by 1.0% in the second quarter, now holding 38,920,984 shares valued at around $7.1 billion. Similarly, Geode Capital Management LLC increased its holdings by 2.0%, reaching 21,026,363 shares worth approximately $3.8 billion.
Another significant player, AllianceBernstein L.P., lifted its position by 72.5%, now owning 13,564,120 shares valued at about $2.5 billion. Ameriprise Financial Inc. also enhanced its stake by 13.7% during the same period, acquiring 8,936,363 shares worth around $1.6 billion. Furthermore, Norges Bank entered the fray by acquiring a new stake valued at about $1.6 billion. Collectively, institutional investors control 80.56% of Applied Materials’ stock.
Recent Financial Performance and Future Outlook
On November 13, 2023, Applied Materials released its quarterly earnings report, revealing earnings per share (EPS) of $2.17, which surpassed analysts’ expectations of $2.11. The company’s revenue for the quarter reached $6.80 billion, outpacing the consensus estimate of $6.68 billion. Despite these positive results, the firm’s revenue reflected a year-over-year decline of 3.5%, down from $2.32 EPS in the same quarter last year.
Looking forward, Applied Materials has set a guidance range for its first quarter of 2026 EPS between $1.980 and $2.380. Analysts anticipate that the company will report an average EPS of $9.38 for the current year.
Dividends and Insider Transactions
In addition to its strong earnings, Applied Materials declared a quarterly dividend of $0.46 per share, scheduled for distribution on March 12, 2024. Shareholders of record on February 19, 2024 will receive this dividend, which represents an annualized total of $1.84 and a yield of 0.6%. The company’s current payout ratio stands at 21.20%.
Recently, some insider trading activity was noted. Senior Vice President Teri A. Little sold 4,000 shares of Applied Materials on November 25, 2023, at an average price of $238.24, totaling $952,960. Following this transaction, she holds 84,351 shares, valued at approximately $20.1 million. Similarly, Chief Accounting Officer Adam Sanders sold 609 shares on December 1, 2023, at an average price of $255.53, amounting to $155,617.77.
Overall, insiders sold a combined total of 8,609 shares worth nearly $2.04 million in the last quarter, reflecting a slight decrease in their ownership of the company’s stock, which currently stands at 0.24% among corporate insiders.
As the investment landscape evolves, Applied Materials continues to attract significant attention from both institutional investors and analysts, positioning itself as a key player in the manufacturing equipment sector.
