TD Asset Management Inc Acquires 4,719 Shares of KLA Corporation (NASDAQ:KLAC)

Key Points

• TD Asset Management Inc increased its stake in KLA Corporation by 1.7%, acquiring an additional 4,719 shares, bringing its total ownership to 286,801 shares valued at approximately $194.97 million.
• KLA's board has authorized a $5 billion stock buyback plan, allowing the company to repurchase up to 5.4% of its outstanding shares, indicating management's belief in the stock's undervalued status.
• The company reported a quarterly earnings per share of $8.41, exceeding analysts' estimates, along with a year-over-year revenue increase of 35.5%, amounting to $3.06 billion.

TD Asset Management Inc increased its holdings in KLA Corporation (NASDAQ:KLAC - Free Report) by 1.7% in the first quarter, according to its most recent 13F filing with the SEC. The institutional investor owned 286,801 shares of the semiconductor company's stock after purchasing an additional 4,719 shares during the period. TD Asset Management Inc owned approximately 0.22% of KLA worth $194,967,000 as of its most recent SEC filing.

A number of other institutional investors also recently made changes to their positions in KLAC. HB Wealth Management LLC lifted its position in shares of KLA by 41.4% in the 1st quarter. HB Wealth Management LLC now owns 6,773 shares of the semiconductor company's stock worth $4,604,000 after purchasing an additional 1,983 shares during the period. Angeles Wealth Management LLC lifted its position in shares of KLA by 6.9% in the 1st quarter. Angeles Wealth Management LLC now owns 373 shares of the semiconductor company's stock worth $254,000 after purchasing an additional 24 shares during the period. Mediolanum International Funds Ltd lifted its position in shares of KLA by 11.8% in the 1st quarter. Mediolanum International Funds Ltd now owns 53,758 shares of the semiconductor company's stock worth $36,211,000 after purchasing an additional 5,656 shares during the period. Nvwm LLC lifted its position in shares of KLA by 1.8% in the 1st quarter. Nvwm LLC now owns 1,662 shares of the semiconductor company's stock worth $1,130,000 after purchasing an additional 30 shares during the period. Finally, Prescott Group Capital Management L.L.C. purchased a new stake in shares of KLA in the 1st quarter worth about $260,000. Hedge funds and other institutional investors own 86.65% of the company's stock.

KLA Stock Up 0.8%

NASDAQ:KLAC traded up $7.42 on Wednesday, reaching $923.51. 268,684 shares of the stock traded hands, compared to its average volume of 1,156,173. The company has a market capitalization of $122.13 billion, a price-to-earnings ratio of 33.61, a PEG ratio of 1.72 and a beta of 1.42. The company has a current ratio of 2.54, a quick ratio of 1.74 and a debt-to-equity ratio of 1.47. KLA Corporation has a 12 month low of $551.33 and a 12 month high of $945.87. The company's fifty day simple moving average is $867.33 and its 200 day simple moving average is $765.12.

KLA (NASDAQ:KLAC - Get Free Report) last announced its quarterly earnings results on Wednesday, April 30th. The semiconductor company reported $8.41 EPS for the quarter, topping analysts' consensus estimates of $8.08 by $0.33. KLA had a net margin of 31.99% and a return on equity of 112.97%. The firm had revenue of $3.06 billion during the quarter, compared to analyst estimates of $3.01 billion. During the same period in the previous year, the business posted $5.26 earnings per share. The business's revenue for the quarter was up 35.5% on a year-over-year basis. Equities analysts predict that KLA Corporation will post 31.59 EPS for the current fiscal year.

KLA Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, June 3rd. Stockholders of record on Monday, May 19th were paid a $1.90 dividend. The ex-dividend date was Monday, May 19th. This is a positive change from KLA's previous quarterly dividend of $1.70. This represents a $7.60 dividend on an annualized basis and a dividend yield of 0.82%. KLA's payout ratio is currently 27.63%.

KLA announced that its Board of Directors has approved a share repurchase program 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 programs are usually a sign that the company's leadership believes its stock is undervalued.

Analyst Ratings Changes

Several equities research analysts have recently commented on the stock. JPMorgan Chase & Co. dropped their target price on shares of KLA from $950.00 to $900.00 and set an "overweight" rating for the company in a research report on Thursday, May 1st. UBS Group raised their target price on shares of KLA from $775.00 to $960.00 and gave the stock a "neutral" rating in a research report on Monday, July 21st. TD Cowen increased their price target on shares of KLA from $770.00 to $800.00 and gave the stock a "hold" rating in a research note on Thursday, May 1st. Barclays increased their price target on shares of KLA from $590.00 to $750.00 and gave the stock an "equal weight" rating in a research note on Monday. Finally, Oppenheimer increased their price target on shares of KLA from $740.00 to $950.00 and gave the stock an "outperform" rating in a research note on Tuesday, June 17th. Eleven investment analysts have rated the stock with a hold rating and seven have given a buy rating to the company. Based on data from MarketBeat, the company has a consensus rating of "Hold" and a consensus price target of $858.19.

Insider Transactions at KLA

In other news, CEO Richard P. Wallace sold 10,802 shares of KLA stock in a transaction that occurred on Tuesday, May 6th. The shares were sold at an average price of $683.30, for a total value of $7,381,006.60. Following the completion of the sale, the chief executive officer directly owned 78,740 shares in the company, valued at $53,803,042. The trade was a 12.06% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, CAO Virendra A. Kirloskar sold 39 shares of KLA stock in a transaction that occurred on Wednesday, July 2nd. The stock was sold at an average price of $891.50, for a total transaction 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 $2,332,164. This represents a 1.47% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 11,860 shares of company stock worth $8,196,798 over the last three months. 0.12% of the stock is currently owned by company insiders.

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.