Sanders Morris Harris LLC Acquires New Holdings in KLA Corporation $KLAC

Key Points

• Sanders Morris Harris LLC acquired 17,500 KLA shares worth approximately $3.4 million, while other institutional investors also significantly increased their holdings. Institutions now own 86.65% of KLA’s stock.
• KLA exceeded quarterly expectations, reporting $1.05 in EPS versus a $1.00 consensus estimate and $3.66 billion in revenue, up 15.2% year over year. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $221.26.
• KLA’s shares recently traded around $178.81, while insiders have sold approximately 243,339 shares worth $46.9 million over the past quarter. The company also pays a quarterly dividend of $0.23, or $0.92 annually.

Sanders Morris Harris LLC acquired a new position in KLA Corporation (NASDAQ:KLAC - Free Report) during the third quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm acquired 17,500 shares of the semiconductor company's stock, valued at approximately $3,411,000.

Several other large investors also recently added to or reduced their stakes in KLAC. Wellington Management Group LLP increased its holdings in KLA by 928.9% during the second quarter. Wellington Management Group LLP now owns 14,821,622 shares of the semiconductor company's stock valued at $4,471,832,000 after buying an additional 13,381,153 shares during the last quarter. Bank of New York Mellon Corp bought a new position in KLA in the second quarter worth approximately $2,522,430,000. National Pension Service boosted its stake in shares of KLA by 899.4% during the 2nd quarter. National Pension Service now owns 3,634,859 shares of the semiconductor company's stock worth $1,096,673,000 after acquiring an additional 3,271,158 shares during the last quarter. NEOS Investment Management LLC boosted its stake in shares of KLA by 987.0% during the 2nd quarter. NEOS Investment Management LLC now owns 979,371 shares of the semiconductor company's stock worth $295,486,000 after acquiring an additional 889,269 shares during the last quarter. Finally, Railway Pension Investments Ltd boosted its stake in shares of KLA by 960.4% during the 2nd quarter. Railway Pension Investments Ltd now owns 926,652 shares of the semiconductor company's stock worth $279,580,000 after acquiring an additional 839,265 shares during the last quarter. 86.65% of the stock is currently owned by institutional investors.

Key Stories Impacting KLA

Here are the key news stories impacting KLA this week:

• Positive Sentiment: Wall Street’s consensus price target implies approximately 27.9% upside from current levels. Recent upward earnings-estimate revisions could provide near-term support, although price-target metrics are not consistently reliable. Wall Street Analysts See a 27.86% Upside in KLA
• Positive Sentiment: KLA’s latest reported quarter exceeded consensus estimates, with revenue rising 15.2% year over year and earnings per share above expectations. Its fiscal first-quarter 2027 earnings call is scheduled for October 28, which could provide a catalyst if management maintains its growth outlook.

KLA Price Performance

Shares of KLAC traded down $5.19 during mid-day trading on Wednesday, reaching $178.81. The stock had a trading volume of 14,449,046 shares, compared to its average volume of 11,073,792. The firm has a market cap of $233.35 billion, a price-to-earnings ratio of 48.76, a PEG ratio of 1.68 and a beta of 1.45. KLA Corporation has a 12 month low of $105.39 and a 12 month high of $307.37. The business has a fifty day moving average of $187.96 and a 200 day moving average of $196.41. The company has a debt-to-equity ratio of 0.93, a quick ratio of 2.03 and a current ratio of 2.88.

KLA (NASDAQ:KLAC - Get Free Report) last announced its quarterly earnings data on Tuesday, July 28th. The semiconductor company reported $1.05 EPS for the quarter, beating the consensus estimate of $1.00 by $0.05. The firm had revenue of $3.66 billion for the quarter, compared to the consensus estimate of $3.61 billion. KLA had a net margin of 35.57% and a return on equity of 87.66%. The company's revenue was up 15.2% on a year-over-year basis. During the same period last year, the firm earned $0.94 EPS. KLA has set its Q1 2027 guidance at 1.060-1.260 EPS. Equities analysts predict that KLA Corporation will post 5.43 EPS for the current year.

KLA Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, September 1st. Investors of record on Monday, August 17th were issued a $0.23 dividend. The ex-dividend date of this dividend was Monday, August 17th. This represents a $0.92 annualized dividend and a yield of 0.5%. This is an increase from KLA's previous quarterly dividend of $0.23. KLA's payout ratio is currently 25.07%.

Insiders Place Their Bets

In other KLA news, CEO Richard Wallace sold 72,019 shares of the stock in a transaction on Tuesday, September 15th. The stock was sold at an average price of $171.88, for a total value of $12,378,625.72. Following the completion of the sale, the chief executive officer owned 706,925 shares in the company, valued at approximately $121,506,269. This represents a 9.25% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, EVP MaryBeth Wilkinson sold 13,802 shares of the firm's stock in a transaction dated Wednesday, August 5th. The shares were sold at an average price of $195.50, for a total value of $2,698,291.00. Following the sale, the executive vice president directly owned 22,110 shares in the company, valued at approximately $4,322,505. This represents a 38.43% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 243,339 shares of company stock worth $46,903,454. 79.39% of the stock is currently owned by corporate insiders.

Analyst Ratings Changes

Several research firms have recently commented on KLAC. Jefferies Financial Group restated a "buy" rating and issued a $210.00 price objective (up from $200.00) on shares of KLA in a research note on Wednesday, July 29th. The Goldman Sachs Group reaffirmed a "neutral" rating and issued a $230.00 target price on shares of KLA in a report on Tuesday, July 28th. Morgan Stanley set a $227.00 target price on KLA and gave the company an "overweight" rating in a research report on Tuesday, October 6th. Stifel Nicolaus set a $250.00 price target on KLA and gave the company a "buy" rating in a report on Wednesday, July 29th. Finally, Bank of America upped their price target on KLA from $210.00 to $317.00 and gave the stock a "buy" rating in a research report on Tuesday, June 23rd. Eighteen equities research analysts have rated the stock with a Buy rating and eleven have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus price target of $221.26.

KLA Company Profile

KLA Corporation NASDAQ: KLAC develops process-control and yield-management solutions used by semiconductor and electronics manufacturers. Its systems help customers detect defects, measure and analyze materials and structures, and monitor manufacturing processes throughout the production of integrated circuits and other advanced electronic components.

The company's product portfolio includes inspection and metrology systems, wafer and reticle inspection equipment, process-control software, data analytics tools, and related services.

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