Maxi Investments CY Ltd Makes New Investment in KLA Corporation (NASDAQ:KLAC)

Key Points

• Maxi Investments CY Ltd acquired 318 shares of KLA Corporation (NASDAQ:KLAC), valued at approximately $216,000, during the 1st quarter as part of increased institutional investment in the semiconductor company.
• KLA recently reported quarterly earnings of $9.38 per share, surpassing estimates and showing significant year-over-year revenue growth of 23.6%.
• The company's board approved a $5.00 billion share buyback program, indicating management's belief that the stock is undervalued, alongside an increase in the quarterly dividend from $1.70 to $1.90.

Maxi Investments CY Ltd purchased a new position in KLA Corporation (NASDAQ:KLAC - Free Report) during the first quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor purchased 318 shares of the semiconductor company's stock, valued at approximately $216,000.

Other hedge funds and other institutional investors have also modified their holdings of the company. Cary Street Partners Investment Advisory LLC increased its holdings in shares of KLA by 55.9% during the 1st quarter. Cary Street Partners Investment Advisory LLC now owns 407 shares of the semiconductor company's stock valued at $277,000 after acquiring an additional 146 shares during the last quarter. Costello Asset Management INC acquired a new position in KLA during the first quarter valued at approximately $408,000. MWA Asset Management raised its position in shares of KLA by 4.0% in the first quarter. MWA Asset Management now owns 694 shares of the semiconductor company's stock valued at $472,000 after purchasing an additional 27 shares during the period. Clearstead Trust LLC lifted its stake in shares of KLA by 440.0% in the first quarter. Clearstead Trust LLC now owns 108 shares of the semiconductor company's stock worth $73,000 after buying an additional 88 shares during the last quarter. Finally, Commonwealth Equity Services LLC lifted its stake in shares of KLA by 4.1% in the first quarter. Commonwealth Equity Services LLC now owns 33,705 shares of the semiconductor company's stock worth $22,913,000 after buying an additional 1,317 shares during the last quarter. 86.65% of the stock is currently owned by hedge funds and other institutional investors.

KLA Price Performance

KLAC traded up $4.87 during midday trading on Wednesday, reaching $888.28. 933,235 shares of the company's stock were exchanged, compared to its average volume of 1,005,801. The company has a quick ratio of 1.83, a current ratio of 2.62 and a debt-to-equity ratio of 1.25. The business has a 50-day simple moving average of $880.13 and a two-hundred day simple moving average of $771.20. The firm has a market capitalization of $117.47 billion, a price-to-earnings ratio of 29.23, a price-to-earnings-growth ratio of 3.01 and a beta of 1.44. KLA Corporation has a one year low of $551.33 and a one year high of $945.87.

KLA (NASDAQ:KLAC - Get Free Report) last posted its earnings results on Thursday, July 31st. The semiconductor company reported $9.38 EPS for the quarter, topping the consensus estimate of $8.53 by $0.85. KLA had a return on equity of 112.41% and a net margin of 33.41%. 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 company earned $6.60 EPS. KLA's revenue was up 23.6% on a year-over-year basis. As a group, research analysts predict that KLA Corporation will post 31.59 EPS for the current year.

KLA Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, June 3rd. Investors of record on Monday, May 19th were given a dividend of $1.90 per share. This is an increase from KLA's previous quarterly dividend of $1.70. The ex-dividend date was Monday, May 19th. This represents a $7.60 dividend on an annualized basis and a dividend yield of 0.9%. KLA's dividend payout ratio is 25.01%.

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

Wall Street Analyst Weigh In

Several brokerages recently commented on KLAC. TD Cowen lifted their target price on shares of KLA from $800.00 to $900.00 and gave the stock a "hold" rating in a report on Friday, August 1st. JPMorgan Chase & Co. lifted their price objective on KLA from $900.00 to $1,070.00 and gave the stock an "overweight" rating in a research note on Friday, August 1st. The Goldman Sachs Group initiated coverage on KLA in a research note on Thursday, July 10th. They set a "neutral" rating and a $980.00 target price for the company. Citigroup lifted their price target on KLA from $1,035.00 to $1,060.00 and gave the stock a "buy" rating in a research report on Friday, August 1st. Finally, Raymond James Financial reiterated an "outperform" rating and set a $950.00 price target (up from $850.00) on shares of KLA in a report on Friday, August 1st. Eleven equities research analysts have rated the stock with a hold rating and eight have given a buy rating to the company. According to MarketBeat, the stock has an average rating of "Hold" and a consensus target price of $890.59.

Insider Transactions at KLA

In other news, CAO Virendra A. Kirloskar sold 39 shares of the firm's stock in a transaction that occurred 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 completion of the sale, the chief accounting officer owned 2,616 shares of the company's stock, 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 SEC, which is accessible through this link. Also, CFO Bren D. Higgins sold 1,019 shares of KLA stock in a transaction that occurred on Thursday, May 22nd. The shares were sold at an average price of $766.46, for a total transaction of $781,022.74. Following the completion of the transaction, 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.