Engineers Gate Manager LP Makes New $2.56 Million Investment in KLA Corporation $KLAC

Key Points

• Engineers Gate Manager LP purchased 8,499 KLA shares worth approximately $2.56 million in the second quarter. Institutional investors collectively own 86.65% of KLA’s outstanding stock.
• Analysts remain broadly positive, with a consensus “Moderate Buy” rating and an average price target of $222.22; recent targets range from $200 to $270.
• KLA exceeded quarterly earnings and revenue expectations, reporting $1.05 EPS and $3.66 billion in revenue, while revenue increased 15.2% year over year. The company also maintained its quarterly dividend at $0.23 per share, yielding about 0.5%.

Engineers Gate Manager LP bought a new stake in shares of KLA Corporation (NASDAQ:KLAC - Free Report) in the second quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor bought 8,499 shares of the semiconductor company's stock, valued at approximately $2,564,000.

A number of other institutional investors and hedge funds have also recently modified their holdings of KLAC. California State Teachers Retirement System raised its stake in KLA by 298,176.3% during the second quarter. California State Teachers Retirement System now owns 599,111,883 shares of the semiconductor company's stock valued at $180,758,046,000 after purchasing an additional 598,911,025 shares in the last quarter. Wellington Management Group LLP grew its stake in shares of KLA by 928.9% in the 2nd quarter. Wellington Management Group LLP now owns 14,821,622 shares of the semiconductor company's stock worth $4,471,832,000 after buying an additional 13,381,153 shares in the last quarter. Bank of New York Mellon Corp bought a new stake in shares of KLA in the 2nd quarter worth about $2,522,430,000. NEOS Investment Management LLC increased its holdings in shares of KLA by 987.0% in the 2nd quarter. NEOS Investment Management LLC now owns 979,371 shares of the semiconductor company's stock worth $295,486,000 after buying an additional 889,269 shares during the last quarter. Finally, Railway Pension Investments Ltd raised its position in shares of KLA by 960.4% during the 2nd quarter. Railway Pension Investments Ltd now owns 926,652 shares of the semiconductor company's stock valued at $279,580,000 after buying an additional 839,265 shares in the last quarter. 86.65% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

KLAC has been the subject of several recent research reports. Scotiabank set a $200.00 price target on KLA in a research report on Wednesday, June 10th. Stifel Nicolaus set a $250.00 price objective on KLA and gave the company a "buy" rating in a research report on Wednesday, July 29th. Jefferies Financial Group reaffirmed a "buy" rating and issued a $210.00 price objective (up from $200.00) on shares of KLA in a research note on Wednesday, July 29th. Needham & Company LLC reiterated a "buy" rating and issued a $270.00 target price on shares of KLA in a report on Wednesday, July 29th. Finally, Morgan Stanley reissued an "overweight" rating and set a $253.00 target price on shares of KLA in a research report on Wednesday, July 29th. One investment analyst has rated the stock with a Strong Buy rating, nineteen have assigned a Buy rating and nine have given a Hold rating to the company's stock. According to MarketBeat, KLA currently has a consensus rating of "Moderate Buy" and an average target price of $222.22.

KLA Stock Performance

KLA stock opened at $169.09 on Tuesday. The company has a debt-to-equity ratio of 0.93, a current ratio of 2.88 and a quick ratio of 2.03. The firm has a market capitalization of $220.92 billion, a P/E ratio of 46.11, a price-to-earnings-growth ratio of 1.61 and a beta of 1.45. KLA Corporation has a 1-year low of $96.70 and a 1-year high of $307.37. The company's 50-day moving average is $196.17 and its 200 day moving average is $190.29.

KLA (NASDAQ:KLAC - Get Free Report) last announced its earnings results on Tuesday, July 28th. The semiconductor company reported $1.05 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.00 by $0.05. KLA had a return on equity of 87.66% and a net margin of 35.57%.The business had revenue of $3.66 billion during the quarter, compared to analyst estimates of $3.61 billion. During the same quarter in the previous year, the business earned $0.94 earnings per share. The company's revenue for the quarter was up 15.2% compared to the same quarter last year. KLA has set its Q1 2027 guidance at 1.060-1.260 EPS. Research analysts forecast that KLA Corporation will post 5.42 EPS for the current year.

KLA Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, September 1st. Investors of record on Monday, August 17th were issued a dividend of $0.23 per share. This represents a $0.92 dividend on an annualized basis and a yield of 0.5%. The ex-dividend date was Monday, August 17th. This is an increase from KLA's previous quarterly dividend of $0.23. KLA's dividend payout ratio (DPR) is presently 25.07%.

Insider Buying and Selling

In other KLA news, EVP MaryBeth Wilkinson sold 14,392 shares of the stock in a transaction on Wednesday, July 1st. The stock was sold at an average price of $285.30, for a total value of $4,106,037.60. Following the sale, the executive vice president owned 53,367 shares in the company, valued at $15,225,605.10. This trade represents a 21.24% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Bren Higgins sold 27,701 shares of KLA stock in a transaction on Thursday, July 2nd. The stock was sold at an average price of $265.69, for a total value of $7,359,878.69. Following the sale, the chief financial officer owned 263,472 shares of the company's stock, valued at approximately $70,001,875.68. This trade represents a 9.51% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 213,413 shares of company stock worth $45,990,744 over the last ninety days. Corporate insiders own 91.48% of the company's stock.

KLA Profile

KLA Corporation NASDAQ: KLAC develops process-control and yield-management technologies used by semiconductor and other advanced-electronics manufacturers. Its systems help customers detect, measure and analyze defects and variations during the production of integrated circuits, enabling manufacturers to improve process performance, product quality and manufacturing yields.

The company's portfolio includes wafer and reticle inspection systems, metrology and measurement tools, defect-review and analysis equipment, and software that supports process control and data management.

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