Mediolanum International Funds Ltd Boosts Position in KLA Corporation (NASDAQ:KLAC)

Key Points

• Mediolanum International Funds Ltd increased its stake in KLA Corporation by 11.8% to a total of $36.21 million in the first quarter, holding 53,758 shares.
• KLA Corporation recently approved a $5 billion share buyback program, indicating the board's belief that the stock may be undervalued.
• The company announced a quarterly dividend increase from $1.70 to $1.90 per share, representing an annualized dividend of $7.60 with a yield of 0.84%.

Mediolanum International Funds Ltd grew its stake in shares of KLA Corporation (NASDAQ:KLAC - Free Report) by 11.8% during the 1st quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor owned 53,758 shares of the semiconductor company's stock after buying an additional 5,656 shares during the quarter. Mediolanum International Funds Ltd's holdings in KLA were worth $36,211,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds have also recently made changes to their positions in KLAC. Alpine Bank Wealth Management bought a new position in shares of KLA during the 1st quarter valued at $35,000. Olde Wealth Management LLC bought a new position in shares of KLA during the 1st quarter valued at $36,000. Hazlett Burt & Watson Inc. bought a new position in shares of KLA during the 1st quarter valued at $45,000. E Fund Management Hong Kong Co. Ltd. grew its holdings in shares of KLA by 527.3% during the 1st quarter. E Fund Management Hong Kong Co. Ltd. now owns 69 shares of the semiconductor company's stock valued at $47,000 after purchasing an additional 58 shares during the last quarter. Finally, HM Payson & Co. grew its holdings in shares of KLA by 270.0% during the 1st quarter. HM Payson & Co. now owns 74 shares of the semiconductor company's stock valued at $50,000 after purchasing an additional 54 shares during the last quarter. Hedge funds and other institutional investors own 86.65% of the company's stock.

Analysts Set New Price Targets

Several equities analysts recently commented on the stock. TD Cowen increased their target price on shares of KLA from $770.00 to $800.00 and gave the company a "hold" rating in a report on Thursday, May 1st. JPMorgan Chase & Co. cut their price target on shares of KLA from $950.00 to $900.00 and set an "overweight" rating on the stock in a report on Thursday, May 1st. 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 report on Monday, July 21st. The Goldman Sachs Group initiated coverage on shares of KLA in a report on Thursday, July 10th. They issued a "neutral" rating and a $980.00 price target on the stock. Finally, Deutsche Bank Aktiengesellschaft lowered shares of KLA from a "buy" rating to a "hold" rating and set a $790.00 price target on the stock. in a report on Tuesday, May 20th. Eleven research analysts have rated the stock with a hold rating and seven have issued a buy rating to the stock. According to data from MarketBeat.com, KLA currently has a consensus rating of "Hold" and a consensus target price of $858.19.

KLA Price Performance

KLAC stock traded up $7.25 during trading on Wednesday, hitting $923.34. 329,793 shares of the company's stock traded hands, compared to its average volume of 1,156,394. KLA Corporation has a 52 week low of $551.33 and a 52 week high of $945.87. 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 business has a fifty day simple moving average of $867.33 and a 200 day simple moving average of $765.12. The stock has a market capitalization of $122.10 billion, a price-to-earnings ratio of 33.56, a P/E/G ratio of 1.72 and a beta of 1.42.

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

KLA Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, June 3rd. Investors of record on Monday, May 19th were paid a $1.90 dividend. This represents a $7.60 annualized dividend and a yield of 0.82%. 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 currently 27.63%.

KLA announced that its board has approved a share repurchase program on Wednesday, April 30th that authorizes the company to repurchase $5.00 billion in shares. This repurchase authorization authorizes the semiconductor company to repurchase up to 5.4% of its stock through open market purchases. Stock repurchase programs are generally a sign that the company's leadership believes its shares are undervalued.

Insider Buying and Selling

In related news, CEO Richard P. Wallace sold 10,802 shares of the firm's stock in a transaction dated 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 transaction, the chief executive officer owned 78,740 shares of the company's stock, valued at $53,803,042. This trade represents a 12.06% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CAO Virendra A. Kirloskar sold 39 shares of the firm's stock in a transaction dated Wednesday, July 2nd. The shares were sold at an average price of $891.50, for a total transaction of $34,768.50. Following the transaction, the chief accounting officer directly owned 2,616 shares in the company, valued at $2,332,164. This trade represents a 1.47% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 11,860 shares of company stock valued at $8,196,798 in the last 90 days. Company 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.