Avantax Advisory Services Inc. Boosts Position in KLA Corporation (NASDAQ:KLAC)

Key Points

• Avantax Advisory Services Inc. increased its holdings in KLA Corporation by 28.0% during the first quarter, owning 7,744 shares valued at approximately $5.26 million.
• KLA Corporation reported a quarterly earnings per share of $8.41, exceeding expectations, with quarterly revenue of $3.06 billion, up 35.5% year-over-year.
• The company recently announced a dividend increase to $1.90 per share and initiated a $5.00 billion share repurchase plan, reflecting confidence in its stock valuation.

Avantax Advisory Services Inc. increased its stake in shares of KLA Corporation (NASDAQ:KLAC - Free Report) by 28.0% during the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 7,744 shares of the semiconductor company's stock after buying an additional 1,693 shares during the quarter. Avantax Advisory Services Inc.'s holdings in KLA were worth $5,264,000 as of its most recent SEC filing.

A number of other large investors have also recently made changes to their positions in KLAC. 3Chopt Investment Partners LLC purchased a new stake in KLA in the first quarter valued at approximately $402,000. GAMMA Investing LLC boosted its holdings in shares of KLA by 40.1% in the 1st 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 last quarter. Confluence Wealth Services Inc. purchased a new stake in shares of KLA in the 1st quarter valued at $1,479,000. Keyvantage Wealth LLC purchased a new stake in shares of KLA in the 4th quarter valued at $214,000. Finally, Mirae Asset Global Investments Co. Ltd. boosted 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 valued at $93,624,000 after acquiring an additional 3,846 shares during the last quarter. 86.65% of the stock is owned by hedge funds and other institutional investors.

KLA Price Performance

Shares of NASDAQ:KLAC traded down $28.93 during midday trading on Thursday, reaching $896.06. 833,890 shares of the company's stock traded hands, compared to its average volume of 1,159,333. The company has a debt-to-equity ratio of 1.47, a quick ratio of 1.74 and a current ratio of 2.54. The company has a market cap of $118.49 billion, a P/E ratio of 32.57, a PEG ratio of 1.71 and a beta of 1.42. KLA Corporation has a 1 year low of $551.33 and a 1 year high of $945.87. The company has a fifty day simple moving average of $870.25 and a two-hundred day simple moving average of $766.22.

KLA (NASDAQ:KLAC - Get Free Report) last issued its quarterly earnings results on Wednesday, April 30th. The semiconductor company reported $8.41 earnings per share for the quarter, beating analysts' consensus estimates of $8.08 by $0.33. The firm had revenue of $3.06 billion for the quarter, compared to analyst estimates of $3.01 billion. KLA had a net margin of 31.99% and a return on equity of 112.97%. KLA's quarterly revenue was up 35.5% compared to the same quarter last year. During the same period last year, the company posted $5.26 EPS. Equities analysts predict that KLA Corporation will post 31.59 EPS for the current fiscal year.

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

KLA Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, June 3rd. Stockholders of record on Monday, May 19th were given a $1.90 dividend. This represents a $7.60 annualized dividend and a dividend yield of 0.85%. The ex-dividend date of this dividend was Monday, May 19th. This is an increase from KLA's previous quarterly dividend of $1.70. KLA's dividend payout ratio (DPR) is 27.63%.

Insider Activity

In other KLA news, CAO Virendra A. Kirloskar sold 39 shares of the firm's stock in a transaction 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 transaction, the chief accounting officer owned 2,616 shares in the company, valued at approximately $2,332,164. This trade represents a 1.47% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, CEO Richard P. Wallace sold 10,802 shares of the firm's stock in a transaction on Tuesday, May 6th. The shares were sold at an average price of $683.30, for a total value of $7,381,006.60. Following the completion of the transaction, the chief executive officer owned 78,740 shares in the company, valued at $53,803,042. The trade was a 12.06% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 11,860 shares of company stock worth $8,196,798 over the last quarter. 0.12% of the stock is currently owned by corporate insiders.

Wall Street Analyst Weigh In

KLAC has been the topic of several recent research reports. Citigroup reaffirmed a "buy" rating and issued a $1,035.00 price target (up from $835.00) on shares of KLA in a report on Monday, July 7th. TD Securities upped their price target on shares of KLA from $770.00 to $800.00 and gave the company a "hold" rating in a report on Thursday, May 1st. Needham & Company LLC restated a "buy" rating and issued a $830.00 target price on shares of KLA in a research note on Thursday, May 1st. The Goldman Sachs Group began coverage on KLA in a research note on Thursday, July 10th. They issued a "neutral" rating and a $980.00 target price on the stock. Finally, Wells Fargo & Company restated an "equal weight" rating and issued a $920.00 target price (up previously from $870.00) on shares of KLA in a research note on Tuesday, July 8th. Eleven research analysts have rated the stock with a hold rating and seven have given a buy rating to the company. According to data from MarketBeat, KLA has a consensus rating of "Hold" and an average target price of $858.19.

KLA Company 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.