MUFG Securities EMEA plc Buys Shares of 13,999 KLA Corporation (NASDAQ:KLAC)

Key Points

• MUFG Securities EMEA plc acquired a new position in KLA Corporation, purchasing 13,999 shares valued at approximately $9.5 million in the first quarter.
• KLA's quarterly earnings exceeded analysts’ expectations, reporting $9.38 EPS and revenue of $3.17 billion, marking a 23.6% increase year-over-year.
• The company authorized a share buyback plan to repurchase up to $5 billion in outstanding shares, indicating confidence in the stock's valuation.

MUFG Securities EMEA plc bought a new stake in KLA Corporation (NASDAQ:KLAC - Free Report) in the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund bought 13,999 shares of the semiconductor company's stock, valued at approximately $9,517,000.

Other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. Alpine Bank Wealth Management bought a new stake in shares of KLA in the first quarter valued at about $35,000. Olde Wealth Management LLC bought a new stake in KLA during the first quarter worth about $36,000. MJT & Associates Financial Advisory Group Inc. bought a new stake in KLA during the first quarter worth about $37,000. Hazlett Burt & Watson Inc. bought a new stake in KLA during the first quarter worth about $45,000. Finally, E Fund Management Hong Kong Co. Ltd. raised 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 acquiring an additional 58 shares in the last quarter. 86.65% of the stock is owned by institutional investors and hedge funds.

Analyst Ratings Changes

Several research firms recently issued reports on KLAC. Needham & Company LLC reiterated a "buy" rating and set a $830.00 target price on shares of KLA in a report on Thursday, May 1st. Raymond James Financial reiterated an "outperform" rating and set a $950.00 target price (up previously from $850.00) on shares of KLA in a report on Friday, August 1st. Wells Fargo & Company reiterated an "equal weight" rating and set a $920.00 target price (up previously from $870.00) on shares of KLA in a report on Tuesday, July 8th. Wall Street Zen lowered KLA from a "buy" rating to a "hold" rating in a research note on Saturday, July 5th. Finally, TD Securities upped their price objective on KLA from $770.00 to $800.00 and gave the company a "hold" rating in a research note on Thursday, May 1st. Eleven analysts have rated the stock with a hold rating and eight have assigned a buy rating to the company. According to MarketBeat.com, the company presently has an average rating of "Hold" and an average price target of $890.59.

Insider Buying and Selling

In other KLA news, CFO Bren D. Higgins sold 1,019 shares of the firm's stock in a transaction on 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 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 sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, 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 value of $34,768.50. Following the completion of the sale, the chief accounting officer directly owned 2,616 shares in the company, valued at approximately $2,332,164. This represents a 1.47% decrease in their position. The disclosure for this sale can be found here. Corporate insiders own 0.12% of the company's stock.

KLA Price Performance

NASDAQ:KLAC traded up $14.00 during trading hours on Wednesday, reaching $949.53. 419,273 shares of the company were exchanged, compared to its average volume of 1,155,373. The company has a market capitalization of $125.30 billion, a P/E ratio of 31.22, a P/E/G ratio of 3.10 and a beta of 1.44. KLA Corporation has a 1-year low of $551.33 and a 1-year high of $951.31. 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 business has a 50 day moving average of $894.57 and a 200 day moving average of $776.44.

KLA (NASDAQ:KLAC - Get Free Report) last issued its quarterly earnings results on Thursday, July 31st. The semiconductor company reported $9.38 earnings per share (EPS) for the quarter, topping 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 112.41% and a net margin of 33.41%. The firm's quarterly revenue was up 23.6% compared to the same quarter last year. During the same quarter in the prior year, the business posted $6.60 earnings per share. Research analysts forecast that KLA Corporation will post 31.59 EPS for the current year.

KLA Announces Dividend

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. The ex-dividend date of this dividend is Monday, August 18th. This represents a $7.60 dividend on an annualized basis and a yield of 0.8%. KLA's dividend payout ratio is currently 25.01%.

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

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.