Costello Asset Management INC Invests $408,000 in KLA Corporation (NASDAQ:KLAC)

Key Points

• Costello Asset Management INC has acquired a new stake in KLA Corporation by purchasing 600 shares worth approximately $408,000.
• KLA's stock recently saw price target upgrades from several analysts, with Oppenheimer raising its target from $740 to $950 and Citigroup increasing theirs from $1,035 to $1,060.
• The company has announced a $5.00 billion stock buyback plan, indicating that it believes its shares are undervalued, along with an increase in its quarterly dividend from $1.70 to $1.90 per share.

Costello Asset Management INC acquired a new position in shares of KLA Corporation (NASDAQ:KLAC - Free Report) during the 1st quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The firm acquired 600 shares of the semiconductor company's stock, valued at approximately $408,000.

A number of other hedge funds and other institutional investors have also recently added to or reduced their stakes in the business. Alpine Bank Wealth Management acquired a new stake in KLA in the first quarter worth $35,000. Olde Wealth Management LLC bought a new stake in KLA during the 1st quarter worth about $36,000. MJT & Associates Financial Advisory Group Inc. acquired a new position in KLA during the first quarter valued at approximately $37,000. Hazlett Burt & Watson Inc. bought a new position in shares of KLA in the first quarter valued at $45,000. Finally, E Fund Management Hong Kong Co. Ltd. raised its holdings in shares of KLA by 527.3% in the 1st quarter. E Fund Management Hong Kong Co. Ltd. now owns 69 shares of the semiconductor company's stock valued at $47,000 after purchasing an additional 58 shares during the period. Institutional investors own 86.65% of the company's stock.

Insider Transactions at KLA

In related news, CAO Virendra A. Kirloskar sold 39 shares of the company's stock in a transaction that occurred on Wednesday, July 2nd. The shares were sold at an average price of $891.50, for a total transaction of $34,768.50. Following the sale, the chief accounting officer directly owned 2,616 shares of the company's stock, valued at $2,332,164. This represents a 1.47% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CFO Bren D. Higgins sold 1,019 shares of the business's stock in a transaction dated Thursday, May 22nd. The stock was sold at an average price of $766.46, for a total value of $781,022.74. Following the transaction, the chief financial officer directly owned 27,779 shares of the company's stock, valued at approximately $21,291,492.34. This represents a 3.54% decrease in their ownership of the stock. The disclosure for this sale can be found here. 0.12% of the stock is owned by corporate insiders.

Wall Street Analyst Weigh In

Several analysts recently issued reports on KLAC shares. Wall Street Zen downgraded KLA from a "buy" rating to a "hold" rating in a research note on Saturday, July 5th. Cantor Fitzgerald reissued an "overweight" rating on shares of KLA in a research report on Tuesday, June 24th. TD Cowen lifted their price objective on shares of KLA from $800.00 to $900.00 and gave the company a "hold" rating in a research note on Friday, August 1st. The Goldman Sachs Group initiated coverage on shares of KLA in a report on Thursday, July 10th. They issued a "neutral" rating and a $980.00 target price on the stock. Finally, Stifel Nicolaus upped their price objective on shares of KLA from $770.00 to $922.00 and gave the stock a "buy" rating in a research report on Friday, August 1st. Eleven research analysts have rated the stock with a hold rating and eight have assigned a buy rating to the stock. Based on data from MarketBeat, KLA has a consensus rating of "Hold" and a consensus target price of $890.59.

KLA Stock Up 0.6%

Shares of KLA stock traded up $4.87 on Wednesday, reaching $888.28. The stock had a trading volume of 933,235 shares, compared to its average volume of 1,005,801. The stock has a market capitalization of $117.47 billion, a P/E ratio of 29.23, a P/E/G ratio of 3.01 and a beta of 1.44. KLA Corporation has a 1 year low of $551.33 and a 1 year high of $945.87. The company has a quick ratio of 1.83, a current ratio of 2.62 and a debt-to-equity ratio of 1.25. The company has a 50 day moving average price of $880.13 and a 200 day moving average price of $771.20.

KLA (NASDAQ:KLAC - Get Free Report) last released its earnings results on Thursday, July 31st. The semiconductor company reported $9.38 earnings per share (EPS) for the quarter, beating the consensus estimate of $8.53 by $0.85. KLA had a return on equity of 112.41% and a net margin of 33.41%. The firm had revenue of $3.17 billion for the quarter, compared to the consensus estimate of $3.08 billion. During the same period in the prior year, the firm earned $6.60 EPS. The firm's revenue was up 23.6% on a year-over-year basis. As a group, equities research analysts forecast that KLA Corporation will post 31.59 EPS for the current year.

KLA announced that its board has approved a share repurchase plan on Wednesday, April 30th that authorizes the company to buyback $5.00 billion in outstanding shares. This buyback authorization authorizes the semiconductor company to buy up to 5.4% of its shares through open market purchases. Shares buyback plans are typically an indication that the company's leadership believes its shares are undervalued.

KLA Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, June 3rd. Stockholders of record on Monday, May 19th were given a $1.90 dividend. This represents a $7.60 dividend on an annualized basis and a dividend yield of 0.9%. This is a positive change from KLA's previous quarterly dividend of $1.70. The ex-dividend date was Monday, May 19th. KLA's dividend payout ratio (DPR) is currently 25.01%.

KLA Company Profile

KLA Corporation, together with its subsidiaries, engages in the design, manufacture, and marketing of process control, process-enabling, and yield management solutions for the semiconductor and related electronics industries worldwide. It operates through three segments: Semiconductor Process Control; Specialty Semiconductor Process; and PCB and Component Inspection.