Bank of America 13F: Cuts Applied Materials (AMAT) Stake by $1B

Bank of America has reduced its stake in Applied Materials, Inc. (AMAT) by 1,483,627 shares, resulting in a total of about 5.39 million shares as of its latest filing on May 18, 2026. This cut represents a 21.6% decrease in its position, leaving the value of its holdings at approximately $3.77 billion.

What Changed in Bank of America's Position

Bank of America's cut in its position reflects a major shift for the fund, which held approximately 6.87 million shares prior to this reduction. The value of its investment has dropped significantly due to the decrease in shares.

Other Institutional Activity in Applied Materials

Several other large investors also adjusted their positions in Applied Materials in the same quarter. Blackrock Inc. grew its holdings by 1,239,871 shares, bringing its total to approximately 80.21 million shares worth about $33.25 billion. Vanguard Capital Management LLC added 268,217 shares, raising its total to about 51.85 million shares valued at $21.49 billion. State Street Corporation increased its stake by 731,418 shares, now holding around 38.24 million shares valued at approximately $15.85 billion. Invesco Ltd. also saw an increase, adding 1,900,912 shares for a total of 28.27 million shares worth about $11.72 billion. However, Capital Research Global Investors cut its position significantly, reducing its stake by 7,296,037 shares to about 22.16 million shares valued at approximately $9.19 billion.

Applied Materials, Inc. Stock Up 62.6%

Applied Materials shares are currently trading at $699.39, significantly higher than its 52-week low of $196.20 but lower than its recent high of $739.67. The stock has shown robust growth, now trading well above its 50-day moving average of $498.35, indicating strong market interest.

Recent Earnings

In its latest earnings report, Applied Materials reported revenue of approximately $30.84 billion, reflecting a revenue growth of 24.8%. The company posted an EPS of $11.60 and a net margin of roughly 30.05%. The next earnings announcement is expected on November 12, 2026.

Dividend

Applied Materials pays an annual dividend of $2.12 per share, resulting in a dividend yield of 0.48%. This payout represents a 16.48% dividend payout ratio, showing a commitment to returning value to shareholders.

Insider Buying and Selling at Applied Materials, Inc.

There have been several insider transactions recently. Adam Sanders, an officer, sold 725 shares on October 2, 2026, at an average price of $544.56 for a total value of $394,807. Director Judy Bruner sold 1,000 shares on September 8, 2026, for $465,000 at an average price of $465. Chief Financial Officer Brice Hill sold 7,500 shares on August 25, 2026, valued at about $3.59 million at an average price of $479.25. Additionally, CEO Gary E. Dickerson sold 78,321 shares on June 30, 2026, totaling approximately $55.55 million, though the average price was not disclosed.

Analysts Set New Price Targets

Analysts have recently adjusted their price targets for Applied Materials. On October 16, 2026, Needham maintained its Buy rating but lowered the target to $580, down from $740. Evercore ISI Group kept its Outperform rating while reducing the target from $700 to $590 on October 15, 2026. RBC Capital reiterated its Outperform rating with a target of $600 on October 14, 2026. Morgan Stanley maintained its Equal-Weight rating while lowering its target from $642 to $563 on September 28, 2026. UBS held its Buy rating while increasing the target from $675 to $695 on September 1, 2026. The consensus among analysts is a strong Buy, with a mean price target of $640.89 based on 35 opinions.

About Applied Materials

Applied Materials, Inc. supplies engineering solutions and equipment for the semiconductor industry. With headquarters in Santa Clara, California, the company serves global markets, including the U.S., China, and Europe. This recent cut by Bank of America points to ongoing adjustments in the tech sector amid changing market conditions.

Bottom Line

Investors should keep an eye on Applied Materials as it prepares for its next earnings report on November 12, 2026. The recent 13F filing from Bank of America reflects its holdings as of the reporting period and may not indicate the fund's current position. Further filings and insider activities may provide more insights into the company's direction in the coming months.