Groupe la Francaise Trims Stake in KLA Corporation $KLAC

Key Points

• Groupe la Francaise reduced its stake in KLA Corporation by 17.8%, selling 3,772 shares, leaving them with 17,391 shares valued at approximately $12.06 million.
• KLA Corporation reported a record earnings per share of $9.38 for the last quarter, surpassing analyst estimates and demonstrating a 23.6% increase in revenue year-over-year.
• The company has initiated a $5.00 billion stock buyback program, indicating management's belief that KLA's stock is undervalued.

Groupe la Francaise decreased its position in shares of KLA Corporation (NASDAQ:KLAC - Free Report) by 17.8% in the 1st quarter, according to its most recent 13F filing with the SEC. The firm owned 17,391 shares of the semiconductor company's stock after selling 3,772 shares during the quarter. Groupe la Francaise's holdings in KLA were worth $12,063,000 at the end of the most recent quarter.

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

KLA Price Performance

Shares of NASDAQ KLAC traded up $8.55 during midday trading on Tuesday, hitting $888.10. The company had a trading volume of 812,229 shares, compared to its average volume of 1,148,859. The firm has a market capitalization of $117.19 billion, a price-to-earnings ratio of 29.22, a price-to-earnings-growth ratio of 2.96 and a beta of 1.44. KLA Corporation has a twelve month low of $551.33 and a twelve month high of $959.26. The business has a 50-day simple moving average of $903.77 and a two-hundred day simple moving average of $787.34. The company has a quick ratio of 1.83, a current ratio of 2.62 and a debt-to-equity ratio of 1.25.

KLA (NASDAQ:KLAC - Get Free Report) last released its quarterly earnings results on Thursday, July 31st. The semiconductor company reported $9.38 earnings per share (EPS) for the quarter, topping the consensus estimate of $8.53 by $0.85. The company had revenue of $3.17 billion for 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 firm's revenue for the quarter was up 23.6% compared to the same quarter last year. During the same period last year, the company earned $6.60 EPS. KLA has set its Q1 2026 guidance at 7.760-9.300 EPS. Equities research analysts anticipate that KLA Corporation will post 31.59 earnings per share for the current year.

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

KLA Announces Dividend

The company also recently declared 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. The ex-dividend date of this dividend is Monday, August 18th. This represents a $7.60 annualized dividend and a dividend yield of 0.9%. KLA's payout ratio is presently 25.01%.

Insider Buying and Selling

In related news, CEO Richard P. Wallace sold 10,801 shares of KLA stock in a transaction dated Tuesday, August 12th. The stock was sold at an average price of $913.68, for a total transaction of $9,868,657.68. Following the sale, the chief executive officer directly owned 92,818 shares of the company's stock, valued at $84,805,950.24. This trade represents a 10.42% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, EVP Brian Lorig sold 8,049 shares of the company's stock in a transaction on Tuesday, August 12th. The shares were sold at an average price of $913.68, for a total transaction of $7,354,210.32. Following the sale, the executive vice president owned 11,479 shares of the company's stock, valued at $10,488,132.72. The trade was a 41.22% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 18,889 shares of company stock worth $17,257,637 in the last quarter. 0.12% of the stock is currently owned by company insiders.

Wall Street Analysts Forecast Growth

A number of research firms recently weighed in on KLAC. Wells Fargo & Company reaffirmed an "equal weight" rating and issued a $920.00 price objective (up from $870.00) on shares of KLA in a research note on Tuesday, July 8th. UBS Group raised their price target on shares of KLA from $775.00 to $960.00 and gave the stock a "neutral" rating in a research report on Monday, July 21st. Morgan Stanley upped their price objective on shares of KLA from $916.00 to $928.00 and gave the company an "overweight" rating in a report on Friday, August 1st. Barclays boosted their target price on shares of KLA from $590.00 to $750.00 and gave the company an "equal weight" rating in a research note on Monday, July 28th. Finally, Deutsche Bank Aktiengesellschaft cut shares of KLA from a "buy" rating to a "hold" rating and set a $790.00 price objective for the company. in a research report on Tuesday, May 20th. Eight analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the company has a consensus rating of "Hold" and an average target price of $890.59.

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.