Assetmark Inc. Acquires 2,420 Shares of KLA Corporation (NASDAQ:KLAC)

Key Points

• Assetmark Inc. increased its stake in KLA Corporation by 2.0%, acquiring an additional 2,420 shares to reach a total of 125,865 shares, valued at approximately $85.56 million.
• KLA Corporation's Board of Directors approved a $5 billion stock buyback plan, indicating confidence in the company's value by allowing repurchases of up to 5.4% of its stock.
• The company recently increased its quarterly dividend to $1.90 per share, representing an annual yield of 0.84%, up from the previous $1.70.

Assetmark Inc. grew its holdings in shares of KLA Corporation (NASDAQ:KLAC - Free Report) by 2.0% in the 1st quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 125,865 shares of the semiconductor company's stock after buying an additional 2,420 shares during the quarter. Assetmark Inc. owned 0.09% of KLA worth $85,563,000 at the end of the most recent quarter.

Other institutional investors and hedge funds have also made changes to their positions in the company. Alpine Bank Wealth Management purchased a new position in shares of KLA in the first quarter valued at $35,000. Olde Wealth Management LLC acquired a new stake in KLA in the first quarter valued at $36,000. Hazlett Burt & Watson Inc. acquired a new stake in KLA in the first quarter valued at $45,000. E Fund Management Hong Kong Co. Ltd. raised its holdings in KLA by 527.3% in the first quarter. E Fund Management Hong Kong Co. Ltd. now owns 69 shares of the semiconductor company's stock valued at $47,000 after acquiring an additional 58 shares in the last quarter. Finally, HM Payson & Co. raised its holdings in KLA by 270.0% in the first quarter. HM Payson & Co. now owns 74 shares of the semiconductor company's stock valued at $50,000 after acquiring an additional 54 shares in the last quarter. 86.65% of the stock is currently owned by hedge funds and other institutional investors.

Insider Buying and Selling

In other KLA news, CAO Virendra A. Kirloskar sold 39 shares of KLA stock in a transaction 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 owned 2,616 shares in the company, valued at $2,332,164. The trade was a 1.47% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, CEO Richard P. Wallace sold 10,802 shares of KLA stock in a transaction on Tuesday, May 6th. The stock was sold at an average price of $683.30, for a total transaction of $7,381,006.60. Following the sale, the chief executive officer owned 78,740 shares in the company, valued at $53,803,042. This represents a 12.06% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 11,860 shares of company stock valued at $8,196,798. 0.12% of the stock is owned by company insiders.

KLA Stock Performance

Shares of NASDAQ:KLAC traded down $2.09 during trading on Friday, reaching $902.09. The stock had a trading volume of 807,981 shares, compared to its average volume of 836,322. KLA Corporation has a 52 week low of $551.33 and a 52 week high of $945.87. The firm has a market capitalization of $119.29 billion, a price-to-earnings ratio of 32.79, a P/E/G ratio of 1.68 and a beta of 1.42. The company has a quick ratio of 1.74, a current ratio of 2.54 and a debt-to-equity ratio of 1.47. The stock has a fifty day simple moving average of $862.09 and a two-hundred day simple moving average of $761.33.

KLA (NASDAQ:KLAC - Get Free Report) last announced its earnings results on Wednesday, April 30th. The semiconductor company reported $8.41 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $8.08 by $0.33. KLA had a net margin of 31.99% and a return on equity of 112.97%. The business had revenue of $3.06 billion for the quarter, compared to analyst estimates of $3.01 billion. During the same quarter in the previous year, the firm posted $5.26 earnings per share. KLA's revenue was up 35.5% compared to the same quarter last year. As a group, analysts anticipate that KLA Corporation will post 31.59 earnings per share for the current fiscal year.

KLA announced that its Board of Directors has approved a stock buyback plan on Wednesday, April 30th that permits the company to repurchase $5.00 billion in outstanding shares. This repurchase authorization permits the semiconductor company to buy up to 5.4% of its stock through open market purchases. Stock repurchase plans are generally a sign that the company's board believes its shares are undervalued.

KLA Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, June 3rd. Investors of record on Monday, May 19th were given a dividend of $1.90 per share. The ex-dividend date was Monday, May 19th. This represents a $7.60 dividend on an annualized basis and a yield of 0.84%. This is a positive change from KLA's previous quarterly dividend of $1.70. KLA's payout ratio is 27.63%.

Analysts Set New Price Targets

Several analysts recently issued reports on the stock. TD Cowen upped their price target on shares of KLA from $770.00 to $800.00 and gave the company a "hold" rating in a report on Thursday, May 1st. Deutsche Bank Aktiengesellschaft cut shares of KLA from a "buy" rating to a "hold" rating and set a $790.00 price objective on the stock. in a report on Tuesday, May 20th. Morgan Stanley raised their target price on shares of KLA from $868.00 to $916.00 and gave the company an "overweight" rating in a research note on Tuesday, July 1st. Wells Fargo & Company restated an "equal weight" rating and set a $920.00 target price (up from $870.00) on shares of KLA in a report on Tuesday, July 8th. Finally, The Goldman Sachs Group began coverage on shares of KLA in a report on Thursday, July 10th. They issued a "neutral" rating and a $980.00 target price for the company. Eleven equities research analysts have rated the stock with a hold rating and nine have given a buy rating to the company's stock. According to data from MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus target price of $852.56.

About KLA

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.