Mitsubishi UFJ Asset Management Co. Ltd. Grows Stock Position in KLA Corporation (NASDAQ:KLAC)

Key Points

• Mitsubishi UFJ Asset Management increased its stake in KLA Corporation by 11.3% during the first quarter, now owning 258,696 shares valued at approximately $175.86 million.
• KLA Corporation reported earnings per share of $9.38 for the recent quarter, exceeding analysts' forecasts, with revenues hitting $3.17 billion, a 23.6% year-over-year increase.
• The company announced a $5 billion stock repurchase program, indicating management's confidence in the stock's valuation, along with a quarterly dividend of $1.90 per share.

Mitsubishi UFJ Asset Management Co. Ltd. grew its holdings in KLA Corporation (NASDAQ:KLAC - Free Report) by 11.3% in the 1st quarter, according to the company in its most recent Form 13F filing with the SEC. The institutional investor owned 258,696 shares of the semiconductor company's stock after acquiring an additional 26,344 shares during the quarter. Mitsubishi UFJ Asset Management Co. Ltd. owned 0.20% of KLA worth $175,862,000 at the end of the most recent reporting period.

Other large investors have also modified their holdings of the company. Vanguard Group Inc. increased its stake in KLA by 0.6% during the 1st quarter. Vanguard Group Inc. now owns 13,564,622 shares of the semiconductor company's stock valued at $9,221,230,000 after purchasing an additional 80,154 shares in the last quarter. Capital International Investors grew its holdings 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 valued at $2,273,118,000 after buying an additional 14,397 shares during the last quarter. Goldman Sachs Group Inc. grew its holdings in shares of KLA by 27.9% during the first quarter. Goldman Sachs Group Inc. now owns 1,852,814 shares of the semiconductor company's stock valued at $1,259,543,000 after buying an additional 404,634 shares during the last quarter. Northern Trust Corp increased its position in shares of KLA by 13.8% in the 4th quarter. Northern Trust Corp now owns 1,685,200 shares of the semiconductor company's stock valued at $1,061,878,000 after acquiring an additional 204,330 shares during the period. Finally, GAMMA Investing LLC raised its stake in KLA by 95,141.6% in the 1st quarter. GAMMA Investing LLC now owns 1,674,347 shares of the semiconductor company's stock worth $1,138,221,000 after acquiring an additional 1,672,589 shares during the last quarter. Hedge funds and other institutional investors own 86.65% of the company's stock.

Insider Activity

In related news, 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 value of $781,022.74. Following the sale, the chief financial officer directly owned 27,779 shares in the company, valued at approximately $21,291,492.34. The trade was a 3.54% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, CAO Virendra A. Kirloskar sold 39 shares of the business's stock in a transaction that occurred 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 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 disclosure for this sale can be found here. 0.12% of the stock is owned by corporate insiders.

KLA Stock Up 2.7%

Shares of KLAC opened at $912.06 on Friday. The firm has a market cap of $120.61 billion, a P/E ratio of 30.01, a PEG ratio of 3.02 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 stock's 50 day moving average is $885.11 and its two-hundred day moving average is $773.08. The company has a current ratio of 2.62, a quick ratio of 1.83 and a debt-to-equity ratio of 1.25.

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 (EPS) for the quarter, beating analysts' consensus estimates of $8.53 by $0.85. The firm had revenue of $3.17 billion for the quarter, compared to analysts' expectations of $3.08 billion. KLA had a net margin of 33.41% and a return on equity of 112.41%. The firm's revenue for the quarter was up 23.6% compared to the same quarter last year. During the same quarter last year, the company earned $6.60 EPS. Analysts predict that KLA Corporation will post 31.59 earnings per share for the current fiscal year.

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

KLA Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, September 3rd. Investors of record on Monday, August 18th will be given a dividend of $1.90 per share. This represents a $7.60 annualized dividend and a dividend yield of 0.8%. KLA's dividend payout ratio (DPR) is presently 25.01%.

Wall Street Analyst Weigh In

Several analysts have weighed in on KLAC shares. Deutsche Bank Aktiengesellschaft downgraded KLA from a "buy" rating to a "hold" rating and set a $790.00 price target on the stock. in a research note on Tuesday, May 20th. Morgan Stanley upped their target price on KLA from $916.00 to $928.00 and gave the company an "overweight" rating in a research report on Friday, August 1st. Citigroup raised their price target on shares of KLA from $1,035.00 to $1,060.00 and gave the stock a "buy" rating in a research report on Friday, August 1st. The Goldman Sachs Group began coverage on shares of KLA in a report on Thursday, July 10th. They issued a "neutral" rating and a $980.00 price objective on the stock. Finally, Cowen reissued a "hold" rating on shares of KLA in a report on Thursday, May 1st. Eleven analysts have rated the stock with a hold rating and eight have issued a buy rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of "Hold" and an average price target of $890.59.

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.

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