Jensen Investment Management Inc. Sells 77,701 Shares of KLA Corporation (NASDAQ:KLAC)

Key Points

• Jensen Investment Management Inc. has decreased its stake in KLA Corporation by 14.6%, now holding 456,126 shares, which constitutes approximately 3.4% of its investment portfolio.
• KLA Corporation recently announced a quarterly dividend increase from $1.70 to $1.90, and has a share repurchase plan for $5.00 billion.
• Analysts have set new price targets for KLA, with Citigroup raising its target to $1,060.00 and a consensus price target of $890.59 among various ratings.

Jensen Investment Management Inc. trimmed its stake in shares of KLA Corporation (NASDAQ:KLAC - Free Report) by 14.6% during the first quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 456,126 shares of the semiconductor company's stock after selling 77,701 shares during the period. KLA makes up about 3.4% of Jensen Investment Management Inc.'s investment portfolio, making the stock its 12th biggest position. Jensen Investment Management Inc. owned approximately 0.34% of KLA worth $310,074,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other large investors also recently modified their holdings of the stock. Alpine Bank Wealth Management acquired a new position in KLA in the first quarter valued at approximately $35,000. Olde Wealth Management LLC acquired a new position in KLA in the first quarter valued at approximately $36,000. MJT & Associates Financial Advisory Group Inc. acquired a new position in KLA in the first quarter valued at approximately $37,000. Hazlett Burt & Watson Inc. acquired a new stake in KLA in the first quarter worth $45,000. Finally, 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 worth $47,000 after purchasing an additional 58 shares during the period. 86.65% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

KLAC has been the topic of several analyst reports. Oppenheimer increased their target price on shares of KLA from $740.00 to $950.00 and gave the stock an "outperform" rating in a report on Tuesday, June 17th. Wells Fargo & Company reiterated an "equal weight" rating and issued a $920.00 target price (up from $870.00) on shares of KLA in a report on Tuesday, July 8th. Stifel Nicolaus increased their price objective on shares of KLA from $770.00 to $922.00 and gave the stock a "buy" rating in a research report on Friday, August 1st. Raymond James Financial reissued an "outperform" rating and set a $950.00 price objective (up previously from $850.00) on shares of KLA in a research report on Friday, August 1st. Finally, Cantor Fitzgerald reissued an "overweight" rating on shares of KLA in a research report on Tuesday, June 24th. Eleven research analysts have rated the stock with a hold rating and eight have issued a buy rating to the stock. According to MarketBeat, KLA has a consensus rating of "Hold" and an average price target of $890.59.

KLA Stock Up 0.3%

KLA stock traded up $2.74 during mid-day trading on Friday, reaching $914.80. The company's stock had a trading volume of 719,495 shares, compared to its average volume of 1,018,441. The company has a market capitalization of $120.97 billion, a price-to-earnings ratio of 30.10, a price-to-earnings-growth ratio of 3.12 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 business's 50 day simple moving average is $888.42 and its 200 day simple moving average is $774.11. The company has a debt-to-equity ratio of 1.25, a quick ratio of 1.83 and a current ratio of 2.62.

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

KLA Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Wednesday, September 3rd. Stockholders of record on Monday, August 18th will be paid a dividend of $1.90 per share. This represents a $7.60 dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date is Monday, August 18th. KLA's dividend payout ratio (DPR) is currently 25.01%.

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

Insider Transactions at KLA

In other KLA news, CAO Virendra A. Kirloskar sold 39 shares of KLA stock in a transaction dated Wednesday, July 2nd. The shares were 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 owned 2,616 shares in the company, valued at $2,332,164. The trade was a 1.47% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO Bren D. Higgins sold 1,019 shares of KLA stock in a transaction dated 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 sale, the chief financial officer owned 27,779 shares of the company's stock, valued at $21,291,492.34. This trade represents a 3.54% decrease in their position. The disclosure for this sale can be found here. Company insiders own 0.12% of the company's stock.

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.