Mizuho Securities USA LLC Trims Stock Position in KLA Corporation (NASDAQ:KLAC)

Key Points

• Mizuho Securities USA LLC reduced its holdings in KLA Corporation by 16.1%, selling 2,037 shares during the first quarter, leaving them with 10,640 shares valued at approximately $7.23 million.
• Analysts have mixed views on KLA, with Citigroup raising their price target to $1,060 while other firms, including Deutsche Bank, have dropped their ratings to "hold."
• KLA recently reported quarterly earnings of $9.38 per share, exceeding analyst expectations and showing a revenue increase of 23.6% year-over-year, with a quarterly dividend declared at $1.90.

Mizuho Securities USA LLC decreased its position in KLA Corporation (NASDAQ:KLAC - Free Report) by 16.1% during the 1st quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 10,640 shares of the semiconductor company's stock after selling 2,037 shares during the quarter. Mizuho Securities USA LLC's holdings in KLA were worth $7,233,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors have also recently modified their holdings of the company. Alpine Bank Wealth Management acquired a new stake in shares of KLA in the first quarter valued at about $35,000. Olde Wealth Management LLC bought a new position in KLA during the first quarter worth about $36,000. MJT & Associates Financial Advisory Group Inc. bought a new position in KLA during the first quarter worth about $37,000. Hazlett Burt & Watson Inc. bought a new position in KLA during the first quarter worth about $45,000. Finally, E Fund Management Hong Kong Co. Ltd. grew its holdings in KLA by 527.3% during the first quarter. E Fund Management Hong Kong Co. Ltd. now owns 69 shares of the semiconductor company's stock worth $47,000 after purchasing an additional 58 shares during the period. Institutional investors and hedge funds own 86.65% of the company's stock.

KLA Price Performance

Shares of KLAC stock traded up $13.95 on Wednesday, hitting $949.48. 889,124 shares of the stock traded hands, compared to its average volume of 1,155,869. The company has a debt-to-equity ratio of 1.25, a current ratio of 2.62 and a quick ratio of 1.83. The firm has a market cap of $125.29 billion, a price-to-earnings ratio of 31.24, a PEG ratio of 3.10 and a beta of 1.44. The firm has a 50 day simple moving average of $894.57 and a two-hundred day simple moving average of $776.44. KLA Corporation has a 52 week low of $551.33 and a 52 week high of $952.35.

KLA (NASDAQ:KLAC - Get Free Report) last issued its quarterly earnings results on Thursday, July 31st. The semiconductor company reported $9.38 EPS for the quarter, beating the consensus estimate of $8.53 by $0.85. The company had revenue of $3.17 billion for the quarter, compared to the consensus estimate of $3.08 billion. KLA had a net margin of 33.41% and a return on equity of 112.41%. The firm's revenue was up 23.6% compared to the same quarter last year. During the same period in the prior year, the firm posted $6.60 EPS. As a group, equities research analysts predict that KLA Corporation will post 31.59 earnings per share for the current fiscal year.

KLA Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, September 3rd. Stockholders of record on Monday, August 18th will be given a $1.90 dividend. This represents a $7.60 annualized dividend and a dividend yield of 0.8%. The ex-dividend date of this dividend is Monday, August 18th. KLA's dividend payout ratio is presently 25.01%.

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

Wall Street Analysts Forecast Growth

A number of equities analysts recently commented on KLAC shares. Oppenheimer lifted their price target on KLA from $740.00 to $950.00 and gave the stock an "outperform" rating in a report on Tuesday, June 17th. The Goldman Sachs Group assumed coverage on KLA in a report on Thursday, July 10th. They set a "neutral" rating and a $980.00 price target for the company. TD Cowen boosted their price objective on KLA from $800.00 to $900.00 and gave the stock a "hold" rating in a report on Friday, August 1st. Deutsche Bank Aktiengesellschaft downgraded KLA from a "buy" rating to a "hold" rating and set a $790.00 target price on the stock. in a research report on Tuesday, May 20th. Finally, TD Securities upped their target price on KLA from $770.00 to $800.00 and gave the company a "hold" rating in a research report on Thursday, May 1st. Eleven research analysts have rated the stock with a hold rating and eight have given a buy rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of "Hold" and a consensus price target of $890.59.

Insider Activity at KLA

In other news, CAO Virendra A. Kirloskar sold 39 shares of the company'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 value 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 represents a 1.47% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CFO Bren D. Higgins sold 1,019 shares of the business's stock in a transaction that occurred on Thursday, May 22nd. The stock was sold at an average price of $766.46, for a total transaction of $781,022.74. Following the transaction, the chief financial officer owned 27,779 shares of the company's stock, valued at approximately $21,291,492.34. This trade represents a 3.54% decrease in their position. The disclosure for this sale can be found here. 0.12% of the stock is currently owned by corporate insiders.

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.