Prudential PLC Boosts Stake in KLA Corporation (NASDAQ:KLAC)

Key Points

• Prudential PLC increased its stake in KLA Corporation by 40.9% to a total of 12,489 shares, purchasing an additional 3,627 shares during the first quarter, valued at approximately $8.49 million.
• KLA Corporation reported $9.38 earnings per share (EPS) for its last quarter, exceeding analysts' estimates and showing a 23.6% year-over-year revenue increase.
• The company has approved a $5 billion stock buyback program, which is intended to repurchase up to 5.4% of its stock, indicating management's belief that shares are undervalued.

Prudential PLC lifted its position in shares of KLA Corporation (NASDAQ:KLAC - Free Report) by 40.9% during the 1st quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 12,489 shares of the semiconductor company's stock after acquiring an additional 3,627 shares during the quarter. Prudential PLC's holdings in KLA were worth $8,490,000 at the end of the most recent quarter.

Several other institutional investors have also modified their holdings of the company. Clal Insurance Enterprises Holdings Ltd boosted its stake in shares of KLA by 131.4% during the 1st quarter. Clal Insurance Enterprises Holdings Ltd now owns 123,292 shares of the semiconductor company's stock worth $83,814,000 after acquiring an additional 70,000 shares in the last quarter. Resona Asset Management Co. Ltd. boosted its stake in shares of KLA by 7.5% during the 1st quarter. Resona Asset Management Co. Ltd. now owns 42,245 shares of the semiconductor company's stock worth $28,679,000 after acquiring an additional 2,951 shares in the last quarter. Arrowpoint Investment Partners Singapore Pte. Ltd. purchased a new stake in KLA in the 1st quarter valued at approximately $476,000. Todd Asset Management LLC lifted its stake in KLA by 11.5% in the 1st quarter. Todd Asset Management LLC now owns 46,282 shares of the semiconductor company's stock valued at $31,462,000 after buying an additional 4,765 shares in the last quarter. Finally, AIA Group Ltd lifted its stake in KLA by 35.5% in the 1st quarter. AIA Group Ltd now owns 542 shares of the semiconductor company's stock valued at $368,000 after buying an additional 142 shares in the last quarter. Hedge funds and other institutional investors own 86.65% of the company's stock.

Insider Transactions at KLA

In related news, CEO Richard P. Wallace sold 10,801 shares of the stock in a transaction on Tuesday, August 12th. The stock was sold at an average price of $913.68, for a total value of $9,868,657.68. Following the completion of the sale, the chief executive officer directly owned 92,818 shares in the company, valued at approximately $84,805,950.24. This represents a 10.42% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CAO Virendra A. Kirloskar sold 39 shares of the 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 owned 2,616 shares of the company's stock, valued at approximately $2,332,164. This represents a 1.47% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 19,908 shares of company stock valued at $18,038,659. Corporate insiders own 0.12% of the company's stock.

Wall Street Analyst Weigh In

A number of equities research analysts recently issued reports on the company. Stifel Nicolaus upped their target price on KLA from $770.00 to $922.00 and gave the company a "buy" rating in a research note on Friday, August 1st. Raymond James Financial reaffirmed an "outperform" rating and issued a $950.00 target price (up previously from $850.00) on shares of KLA in a research note on Friday, August 1st. TD Securities upped their target price on KLA from $770.00 to $800.00 and gave the company a "hold" rating in a research note on Thursday, May 1st. Wall Street Zen lowered KLA from a "buy" rating to a "hold" rating in a research note on Saturday, July 5th. Finally, Oppenheimer upped their target price on KLA from $740.00 to $950.00 and gave the company an "outperform" rating in a research note on Tuesday, June 17th. Eleven equities 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.com, the company has an average rating of "Hold" and a consensus price target of $890.59.

KLA Trading Down 8.4%

Shares of KLAC stock traded down $80.47 on Friday, reaching $874.94. 2,063,166 shares of the stock were exchanged, compared to its average volume of 1,029,476. The stock has a market cap of $115.46 billion, a P/E ratio of 28.79, a price-to-earnings-growth ratio of 3.25 and a beta of 1.44. 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 firm has a 50 day moving average of $902.52 and a two-hundred day moving average of $780.56. KLA Corporation has a 1-year low of $551.33 and a 1-year high of $959.26.

KLA (NASDAQ:KLAC - Get Free Report) last released its quarterly earnings data on Thursday, July 31st. The semiconductor company reported $9.38 EPS for the quarter, topping analysts' consensus estimates of $8.53 by $0.85. The business had revenue of $3.17 billion during 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 business's revenue for the quarter was up 23.6% on a year-over-year basis. During the same period in the prior year, the firm posted $6.60 EPS. On average, research analysts anticipate that KLA Corporation will post 31.59 EPS for the current year.

KLA announced that its Board of Directors has initiated a stock repurchase plan 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 plans are generally an indication that the company's management believes its shares are undervalued.

KLA Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 3rd. Stockholders of record on Monday, August 18th will be issued a dividend of $1.90 per share. This represents a $7.60 dividend on an annualized basis and a dividend yield of 0.9%. The ex-dividend date is Monday, August 18th. KLA's dividend payout ratio is presently 25.01%.

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.