KLA Corporation (NASDAQ:KLAC) Shares Sold by Ramirez Asset Management Inc.

Key Points

• Ramirez Asset Management Inc. has reduced its holdings in KLA Corporation by 22.5%, now owning 1,846 shares worth approximately $1.26 million.
• KLA Corporation's board has authorized a $5 billion stock buyback program, indicating that management believes the stock is undervalued.
• The company recently raised its quarterly dividend to $1.90 per share, reflecting a positive trend with an annual yield of 0.82%.

Ramirez Asset Management Inc. decreased its position in shares of KLA Corporation (NASDAQ:KLAC - Free Report) by 22.5% during the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund owned 1,846 shares of the semiconductor company's stock after selling 537 shares during the quarter. Ramirez Asset Management Inc.'s holdings in KLA were worth $1,255,000 as of its most recent filing with the Securities and Exchange Commission.

Other large investors also recently bought and sold shares of the company. Capital International Investors increased its stake in shares of KLA by 0.4% during the fourth quarter. Capital International Investors now owns 3,606,838 shares of the semiconductor company's stock worth $2,273,118,000 after buying an additional 14,397 shares during the period. Geode Capital Management LLC raised its position in KLA by 1.0% in the fourth quarter. Geode Capital Management LLC now owns 3,253,302 shares of the semiconductor company's stock worth $2,046,472,000 after acquiring an additional 31,608 shares in the last quarter. Northern Trust Corp raised its position in KLA by 13.8% in the fourth quarter. Northern Trust Corp now owns 1,685,200 shares of the semiconductor company's stock worth $1,061,878,000 after acquiring an additional 204,330 shares in the last quarter. GAMMA Investing LLC increased its position in shares of KLA by 95,141.6% in the first quarter. GAMMA Investing LLC now owns 1,674,347 shares of the semiconductor company's stock valued at $1,138,221,000 after buying an additional 1,672,589 shares in the last quarter. Finally, Pictet Asset Management Holding SA increased its position in shares of KLA by 9.0% in the first quarter. Pictet Asset Management Holding SA now owns 1,586,781 shares of the semiconductor company's stock valued at $1,078,526,000 after buying an additional 131,620 shares in the last quarter. Institutional investors and hedge funds own 86.65% of the company's stock.

KLA Stock Up 0.8%

Shares of KLAC traded up $6.71 during trading hours on Friday, hitting $885.74. The stock had a trading volume of 847,402 shares, compared to its average volume of 1,167,339. KLA Corporation has a 1-year low of $551.33 and a 1-year high of $945.87. The firm has a 50 day simple moving average of $872.48 and a 200-day simple moving average of $767.52. The company has a debt-to-equity ratio of 1.47, a current ratio of 2.54 and a quick ratio of 1.74. The firm has a market capitalization of $117.13 billion, a P/E ratio of 32.19, a price-to-earnings-growth ratio of 1.72 and a beta of 1.42.

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 for the quarter, beating analysts' consensus estimates of $8.53 by $0.85. The business had revenue of $3.17 billion for the quarter, compared to the consensus estimate of $3.08 billion. KLA had a return on equity of 112.97% and a net margin of 31.99%. The company's revenue for the quarter was up 23.6% on a year-over-year basis. During the same quarter last year, the business posted $6.60 earnings per share. Sell-side analysts predict that KLA Corporation will post 31.59 EPS for the current fiscal year.

KLA Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, June 3rd. Investors of record on Monday, May 19th were issued a dividend of $1.90 per share. This represents a $7.60 annualized dividend and a yield of 0.9%. The ex-dividend date was Monday, May 19th. This is a positive change from KLA's previous quarterly dividend of $1.70. KLA's payout ratio is currently 27.63%.

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

Analyst Upgrades and Downgrades

KLAC has been the topic of a number of research analyst reports. Cantor Fitzgerald reissued an "overweight" rating on shares of KLA in a research note on Tuesday, June 24th. Needham & Company LLC reiterated a "buy" rating and issued a $830.00 target price on shares of KLA in a research report on Thursday, May 1st. Barclays boosted their price objective on KLA from $590.00 to $750.00 and gave the company an "equal weight" rating in a research report on Monday. Citigroup restated a "buy" rating and issued a $1,035.00 price objective (up previously from $835.00) on shares of KLA in a report on Monday, July 7th. Finally, JPMorgan Chase & Co. upped their target price on KLA from $900.00 to $1,070.00 and gave the company an "overweight" rating in a report on Friday. Eleven analysts have rated the stock with a hold rating and eight have assigned a buy rating to the company's stock. According to data from MarketBeat.com, KLA currently has a consensus rating of "Hold" and a consensus price target of $889.12.

Insider Activity at KLA

In related news, CAO Virendra A. Kirloskar sold 39 shares of the firm's stock in a transaction on Wednesday, July 2nd. The shares were sold at an average price of $891.50, for a total transaction of $34,768.50. Following the sale, 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 ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Richard P. Wallace sold 10,802 shares of the business's stock in a transaction dated Tuesday, May 6th. The shares were sold at an average price of $683.30, for a total transaction 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 ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 11,860 shares of company stock worth $8,196,798. Insiders own 0.12% of the company's stock.

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.