Dimensional Fund Advisors LP Cuts Stock Holdings in KLA Corporation $KLAC

Key Points

• Dimensional Fund Advisors LP sold 6,366 shares of KLA Corporation in Q1, reducing its stake to approximately 0.58% valued at $522.74 million.
• KLA announced a quarterly dividend of $1.90, with an annualized yield of 0.8%, and has authorized a $5 billion share buyback program.
• Analysts are optimistic about KLA, with several firms increasing their price targets, leading to a current average target of $890.59, amidst a mix of buy and hold ratings.

Dimensional Fund Advisors LP cut its holdings in KLA Corporation (NASDAQ:KLAC - Free Report) by 0.8% during the 1st quarter, according to the company in its most recent disclosure with the SEC. The firm owned 769,106 shares of the semiconductor company's stock after selling 6,366 shares during the quarter. Dimensional Fund Advisors LP owned 0.58% of KLA worth $522,740,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds have also recently modified their holdings of KLAC. 3Chopt Investment Partners LLC bought a new stake in KLA in the 1st quarter valued at about $402,000. GAMMA Investing LLC grew its stake in KLA by 40.1% in the first quarter. GAMMA Investing LLC now owns 2,463 shares of the semiconductor company's stock valued at $1,674,000 after acquiring an additional 705 shares during the period. Confluence Wealth Services Inc. bought a new stake in shares of KLA during the first quarter valued at approximately $1,479,000. Keyvantage Wealth LLC acquired a new position in shares of KLA during the fourth quarter worth approximately $214,000. Finally, Mirae Asset Global Investments Co. Ltd. lifted its holdings in shares of KLA by 2.8% in the 1st quarter. Mirae Asset Global Investments Co. Ltd. now owns 138,990 shares of the semiconductor company's stock worth $93,624,000 after purchasing an additional 3,846 shares in the last quarter. 86.65% of the stock is currently owned by institutional investors.

Wall Street Analyst Weigh In

A number of analysts have commented on the stock. Wells Fargo & Company restated an "equal weight" rating and set a $920.00 price target (up previously from $870.00) on shares of KLA in a research note on Tuesday, July 8th. Cantor Fitzgerald reissued an "overweight" rating on shares of KLA in a research report on Tuesday, June 24th. Raymond James Financial restated an "outperform" rating and issued a $950.00 target price (up previously from $850.00) on shares of KLA in a report on Friday, August 1st. Needham & Company LLC reiterated a "buy" rating and set a $830.00 price target on shares of KLA in a research note on Thursday, May 1st. Finally, The Goldman Sachs Group initiated coverage on shares of KLA in a research note on Thursday, July 10th. They issued a "neutral" rating and a $980.00 target price for the company. Eight research analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the company. According to MarketBeat.com, the company currently has an average rating of "Hold" and a consensus target price of $890.59.

Insider Transactions at KLA

In related news, EVP Brian Lorig sold 8,049 shares of the firm's stock in a transaction dated Tuesday, August 12th. The stock was sold at an average price of $913.68, for a total transaction of $7,354,210.32. Following the transaction, the executive vice president directly owned 11,479 shares of the company's stock, valued at approximately $10,488,132.72. This trade represents a 41.22% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, CAO Virendra A. Kirloskar sold 39 shares of the company's stock in a transaction that occurred on Wednesday, July 2nd. The stock was sold at an average price of $891.50, for a total value of $34,768.50. Following the completion of the sale, the chief accounting officer directly owned 2,616 shares of the company's stock, valued at approximately $2,332,164. This represents a 1.47% decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 19,908 shares of company stock worth $18,038,659. Company insiders own 0.12% of the company's stock.

KLA Price Performance

NASDAQ KLAC traded up $2.36 during trading on Wednesday, reaching $878.44. The company's stock had a trading volume of 978,414 shares, compared to its average volume of 1,075,947. The firm has a fifty day moving average of $904.12 and a 200 day moving average of $783.62. The stock has a market capitalization of $115.92 billion, a PE ratio of 28.91, a P/E/G ratio of 2.98 and a beta of 1.44. The company has a debt-to-equity ratio of 1.25, a current ratio of 2.62 and a quick ratio of 1.83. KLA Corporation has a one year low of $551.33 and a one year high of $959.26.

KLA (NASDAQ:KLAC - Get Free Report) last released its quarterly earnings results on Thursday, July 31st. The semiconductor company reported $9.38 EPS for the quarter, topping analysts' consensus estimates of $8.53 by $0.85. The business had revenue of $3.17 billion during the quarter, compared to analysts' expectations of $3.08 billion. KLA had a net margin of 33.41% and a return on equity of 112.41%. The business's quarterly revenue was up 23.6% compared to the same quarter last year. During the same quarter in the previous year, the company earned $6.60 EPS. KLA has set its Q1 2026 guidance at 7.760-9.300 EPS. Analysts expect that KLA Corporation will post 31.59 EPS for the current fiscal year.

KLA Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Wednesday, September 3rd. Investors of record on Monday, August 18th will be paid a $1.90 dividend. This represents a $7.60 dividend on an annualized basis and a yield of 0.9%. The ex-dividend date of this dividend is Monday, August 18th. KLA's dividend payout ratio is currently 25.01%.

KLA declared that its board has approved a stock repurchase program on Wednesday, April 30th that allows the company to buyback $5.00 billion in outstanding shares. This buyback authorization allows the semiconductor company to purchase up to 5.4% of its shares through open market purchases. Shares buyback programs are usually a sign that the company's board believes its stock is undervalued.

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.