Public Sector Pension Investment Board Trims Stock Holdings in KLA Corporation (NASDAQ:KLAC)

Key Points

• The Public Sector Pension Investment Board has reduced its stake in KLA Corporation by 11.8%, selling 19,827 shares during the first quarter of the year.
• KLA reported earnings of $9.38 per share for the last quarter, exceeding analysts' expectations of $8.53, with revenue increasing by 23.6% year-over-year.
• The company's Board of Directors has authorized a $5 billion stock repurchase program, indicating confidence in the stock's valuation.

Public Sector Pension Investment Board lessened its stake in shares of KLA Corporation (NASDAQ:KLAC - Free Report) by 11.8% in the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 147,791 shares of the semiconductor company's stock after selling 19,827 shares during the quarter. Public Sector Pension Investment Board owned about 0.11% of KLA worth $100,468,000 at the end of the most recent quarter.

Several other hedge funds have also recently modified their holdings of KLAC. Heritage Trust Co acquired a new position in shares of KLA during the 4th quarter worth $228,000. Townsquare Capital LLC grew its position in KLA by 22.6% during the fourth quarter. Townsquare Capital LLC now owns 3,317 shares of the semiconductor company's stock worth $2,090,000 after buying an additional 612 shares during the period. Sagespring Wealth Partners LLC purchased a new position in KLA in the fourth quarter valued at about $518,000. Advisors Capital Management LLC lifted its position in shares of KLA by 5.0% during the 4th quarter. Advisors Capital Management LLC now owns 3,727 shares of the semiconductor company's stock valued at $2,349,000 after acquiring an additional 176 shares during the period. Finally, Summit Investment Advisors Inc. boosted its stake in shares of KLA by 2.8% during the 4th quarter. Summit Investment Advisors Inc. now owns 5,559 shares of the semiconductor company's stock worth $3,503,000 after acquiring an additional 152 shares in the last quarter. 86.65% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

KLAC has been the subject of several research reports. Deutsche Bank Aktiengesellschaft cut KLA from a "buy" rating to a "hold" rating and set a $790.00 price objective for the company. in a report on Tuesday, May 20th. The Goldman Sachs Group began coverage on shares of KLA in a research report on Thursday, July 10th. They issued a "neutral" rating and a $980.00 price objective on the stock. Raymond James Financial restated an "outperform" rating and set a $950.00 target price (up from $850.00) on shares of KLA in a report on Friday, August 1st. Oppenheimer upped their price target on shares of KLA from $740.00 to $950.00 and gave the company an "outperform" rating in a report on Tuesday, June 17th. Finally, UBS Group raised their price objective on shares of KLA from $775.00 to $960.00 and gave the stock a "neutral" rating in a research note on Monday, July 21st. Eleven investment analysts have rated the stock with a hold rating and eight have assigned a buy rating to the company. Based on data from MarketBeat.com, KLA presently has a consensus rating of "Hold" and a consensus target price of $890.59.

Insider Activity at KLA

In related news, CFO Bren D. Higgins sold 1,019 shares of the 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 completion of the sale, the chief financial officer directly owned 27,779 shares in the company, valued at approximately $21,291,492.34. This represents a 3.54% 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, CEO Richard P. Wallace sold 10,801 shares of the firm's stock in a transaction dated Tuesday, August 12th. The shares were sold at an average price of $913.68, for a total value of $9,868,657.68. Following the completion of the transaction, the chief executive officer directly owned 92,818 shares in the company, valued at $84,805,950.24. This trade represents a 10.42% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 11,859 shares of company stock worth $10,684,449. 0.12% of the stock is owned by insiders.

KLA Trading Up 0.6%

NASDAQ KLAC traded up $5.93 during trading hours on Thursday, hitting $955.41. 992,006 shares of the company's stock were exchanged, compared to its average volume of 1,157,518. The company has a debt-to-equity ratio of 1.25, a quick ratio of 1.83 and a current ratio of 2.62. The firm has a market capitalization of $126.08 billion, a P/E ratio of 31.44, a price-to-earnings-growth ratio of 3.19 and a beta of 1.44. The business's 50 day moving average is $897.91 and its 200-day moving average is $777.63. KLA Corporation has a 12-month low of $551.33 and a 12-month high of $959.26.

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

KLA Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, September 3rd. Investors 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 (DPR) is 25.01%.

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

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.