Connable Office Inc. Reduces Stock Position in KLA Corporation (NASDAQ:KLAC)

Key Points

• Connable Office Inc. reduced its stake in KLA Corporation by 18.3%, now holding 3,404 shares valued at $2,314,000.
• KLA's CFO sold 1,019 shares recently for over $781,000, indicating a 3.54% decrease in their ownership position.
• KLA announced a quarterly dividend increase from $1.70 to $1.90 and approved a stock buyback plan worth $5 billion.

Connable Office Inc. lowered its stake in KLA Corporation (NASDAQ:KLAC - Free Report) by 18.3% in the 1st quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm owned 3,404 shares of the semiconductor company's stock after selling 762 shares during the quarter. Connable Office Inc.'s holdings in KLA were worth $2,314,000 as of its most recent filing with the Securities & Exchange Commission.

Other hedge funds also recently bought and sold shares of the company. Alpine Bank Wealth Management purchased a new position in KLA during the first quarter worth about $35,000. Olde Wealth Management LLC purchased a new position in shares of KLA during the first quarter worth approximately $36,000. MJT & Associates Financial Advisory Group Inc. purchased a new position in KLA in the 1st quarter worth $37,000. Hazlett Burt & Watson Inc. bought a new stake in shares of KLA in the 1st quarter valued at about $45,000. Finally, E Fund Management Hong Kong Co. Ltd. lifted its position 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 purchasing an additional 58 shares during the last quarter. Hedge funds and other institutional investors own 86.65% of the company's stock.

Wall Street Analyst Weigh In

Several equities analysts have recently commented on the stock. TD Securities increased their target price on shares of KLA from $770.00 to $800.00 and gave the stock a "hold" rating in a report on Thursday, May 1st. UBS Group boosted their target price on shares of KLA from $775.00 to $960.00 and gave the company a "neutral" rating in a report on Monday, July 21st. The Goldman Sachs Group initiated coverage on KLA in a research report on Thursday, July 10th. They issued a "neutral" rating and a $980.00 price target on the stock. Wall Street Zen downgraded shares of KLA from a "buy" rating to a "hold" rating in a research report on Saturday, July 5th. Finally, TD Cowen lifted their target price on KLA from $800.00 to $900.00 and gave the stock a "hold" rating in a report on Friday. Eleven investment analysts have rated the stock with a hold rating and eight have assigned a buy rating to the company's stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus target price of $890.59.

Insider Buying and Selling

In other news, CFO Bren D. Higgins sold 1,019 shares of the stock in a transaction that occurred on Thursday, May 22nd. The stock was sold at an average price of $766.46, for a total transaction of $781,022.74. Following the completion of the transaction, the chief financial officer directly owned 27,779 shares in the company, valued at approximately $21,291,492.34. This represents a 3.54% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CAO Virendra A. Kirloskar sold 39 shares of KLA stock in a transaction on Wednesday, July 2nd. The stock was sold at an average price of $891.50, for a total transaction of $34,768.50. Following the completion of the transaction, the chief accounting officer directly owned 2,616 shares of the company's stock, valued at $2,332,164. The trade was a 1.47% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders have sold 11,860 shares of company stock worth $8,196,798. Corporate insiders own 0.12% of the company's stock.

KLA Trading Up 0.9%

Shares of NASDAQ:KLAC opened at $886.64 on Monday. The stock has a 50 day moving average of $875.07 and a 200 day moving average of $769.31. The company has a market cap of $117.25 billion, a PE ratio of 29.18, a price-to-earnings-growth ratio of 1.63 and a beta of 1.44. KLA Corporation has a 12-month low of $551.33 and a 12-month high of $945.87. The company has a current ratio of 2.62, a quick ratio of 1.83 and a debt-to-equity ratio of 1.25.

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

KLA Increases Dividend

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

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

KLA 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.

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