Royal London Asset Management Adjusts Its Position in Applied Materials, Inc.

Royal London Asset Management Ltd. has reduced its investment in Applied Materials, Inc. (NASDAQ:AMAT - Free Report) by 2.2% during the fourth quarter, as reported in its latest 13F filing with the Securities and Exchange Commission (SEC). The firm now holds 891,447 shares of the manufacturing equipment company's stock, following the sale of 19,875 shares during the quarter. As of the end of the reporting period, Royal London Asset Management Ltd. valued its holdings at approximately $144,976,000, representing about 0.11% of Applied Materials.

Other Institutional Holdings

Several other institutional investors have also been active with their positions in Applied Materials. Swedbank AB increased its stake by 2.6% in the third quarter, owning 4,244,566 shares valued at $857,615,000 after acquiring an additional 108,827 shares. Caprock Group LLC raised its holdings by 1.0%, owning 19,290 shares valued at $3,898,000 after purchasing 191 shares. Prospera Financial Services Inc boosted its stake by an impressive 29.6%, now holding 18,472 shares valued at $3,734,000 after acquiring an additional 4,215 shares. Additionally, Prospera Private Wealth LLC established a new position in the third quarter valued at $1,680,000, while Commerce Bank increased its holdings by 5.7%, owning 52,518 shares worth $10,611,000 after a purchase of 2,838 shares. In total, institutional investors own 80.56% of Applied Materials stock.

Recent Analyst Ratings

Equity analysts have recently weighed in on Applied Materials' stock. Needham & Company LLC lowered their price target from $200.00 to $195.00, rating it as a "buy" in a report released on February 14th. Likewise, Sanford C. Bernstein reduced their price target from $220.00 to $210.00 while issuing an "outperform" rating on November 29th. Citigroup raised their price target from $194.00 to $202.00, maintaining a "buy" rating. Susquehanna increased their price target from $155.00 to $165.00 and suggested a "neutral" stance. Stifel Nicolaus also revised its target from $250.00 to $235.00, keeping a "buy" rating. Overall, one analyst has rated Applied Materials as a sell, seven as hold, and sixteen as buy, resulting in an average rating of "Moderate Buy" with a target price of $215.38 according to MarketBeat.com.

Stock Performance and Financials

As of Thursday, shares of NASDAQ AMAT opened at $154.46. The stock has a one-year low of $145.37 and a high of $255.89. The company maintains a debt-to-equity ratio of 0.29, a current ratio of 2.67, and a quick ratio of 1.96. Applied Materials boasts a market capitalization of $125.49 billion, a PE ratio of 20.19, a price-to-earnings-growth ratio of 1.81, and a beta of 1.62. The stock's 50-day simple moving average stands at $171.16, while the 200-day moving average is $178.41.

Dividend Increase and Share Buyback

In recent developments, Applied Materials declared a quarterly dividend of $0.46, which will be distributed on June 12th to shareholders on record as of May 22nd. This amount reflects an increase from the previous dividend of $0.40 and translates to an annual yield of 1.19%, with a dividend payout ratio of 24.05%. Moreover, the company's Board of Directors has sanctioned a share repurchase initiative enabling up to $10.00 billion in share buybacks, representing an opportunity to acquire up to 8.2% of the company's shares in the market, which is generally interpreted as a sign of confidence from the company in the value of its stock.

Insider Transactions

In other company news, CAO Adam Sanders sold 271 shares on February 24th at an average price of $172.72, amounting to a total transaction of approximately $46,807.12. After the sale, Sanders retains 6,479 shares valued around $1,119,052.88, indicating a 4.01% reduction in his holdings. Currently, insiders own 0.24% of the stock.

Company Overview

Applied Materials, Inc. provides manufacturing equipment, services, and software for the semiconductor, display, and related sectors, divided into three segments: Semiconductor Systems, Applied Global Services, and Display and Adjacent Markets. The Semiconductor Systems segment focuses on the development, manufacture, and sale of equipment used to fabricate semiconductor chips and integrated circuits.

Conclusion

As Royal London Asset Management and several institutional investors adjust their positions in Applied Materials, it reflects the changing sentiments in the market and the potential growth before the company. While analyst ratings suggest a generally positive outlook, it will be interesting to watch how these dynamics play out in the coming quarters.

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