Todd Asset Management LLC Increases Position in KLA Corporation (NASDAQ:KLAC)

Key Points

• Todd Asset Management LLC increased its stake in KLA Corporation by 11.5%, acquiring an additional 4,765 shares, bringing its total holdings to 46,282 shares valued at approximately $31.46 million.
• KLA's latest earnings report showed a significant increase in revenue and earnings per share, with $9.38 EPS exceeding analysts' expectations, and quarterly revenue of $3.17 billion up 23.6% year-over-year.
• The company announced a quarterly dividend of $1.90 per share, representing an annualized yield of 0.8%, and has initiated a $5 billion share buyback program to repurchase outstanding shares.

Todd Asset Management LLC lifted its holdings in shares of KLA Corporation (NASDAQ:KLAC - Free Report) by 11.5% during the first quarter, according to its most recent disclosure with the SEC. The fund owned 46,282 shares of the semiconductor company's stock after acquiring an additional 4,765 shares during the period. Todd Asset Management LLC's holdings in KLA were worth $31,462,000 at the end of the most recent quarter.

A number of other large investors have also modified their holdings of KLAC. Anchor Investment Management LLC raised its stake in KLA by 12.0% during the fourth quarter. Anchor Investment Management LLC now owns 140 shares of the semiconductor company's stock worth $88,000 after purchasing an additional 15 shares during the period. IFC Advisors LLC boosted its stake in KLA by 4.6% during the first quarter. IFC Advisors LLC now owns 342 shares of the semiconductor company's stock worth $232,000 after buying an additional 15 shares during the period. Trust Investment Advisors boosted its stake in shares of KLA by 1.3% in the first quarter. Trust Investment Advisors now owns 1,188 shares of the semiconductor company's stock valued at $808,000 after purchasing an additional 15 shares during the period. Lockerman Financial Group Inc. boosted its stake in shares of KLA by 3.8% in the first quarter. Lockerman Financial Group Inc. now owns 438 shares of the semiconductor company's stock valued at $298,000 after purchasing an additional 16 shares during the period. Finally, Childress Capital Advisors LLC boosted its stake in shares of KLA by 3.3% in the first quarter. Childress Capital Advisors LLC now owns 495 shares of the semiconductor company's stock valued at $337,000 after purchasing an additional 16 shares during the period. Hedge funds and other institutional investors own 86.65% of the company's stock.

KLA Stock Performance

NASDAQ KLAC traded up $5.93 on Thursday, reaching $955.41. The stock had a trading volume of 989,311 shares, compared to its average volume of 1,157,446. The company has a debt-to-equity ratio of 1.25, a quick ratio of 1.83 and a current ratio of 2.62. KLA Corporation has a 12-month low of $551.33 and a 12-month high of $959.26. The business's 50-day moving average price is $897.91 and its 200 day moving average price is $777.63. The stock has a market cap 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.

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

KLA Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, September 3rd. Stockholders of record on Monday, August 18th will be paid a dividend of $1.90 per share. This represents a $7.60 dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date of this dividend is Monday, August 18th. KLA's dividend payout ratio is 25.01%.

KLA declared that its Board of Directors has initiated a stock repurchase plan on Wednesday, April 30th that permits the company to buyback $5.00 billion in outstanding shares. This buyback authorization permits the semiconductor company to reacquire up to 5.4% of its shares through open market purchases. Shares buyback plans are typically a sign that the company's board believes its stock is undervalued.

Wall Street Analysts Forecast Growth

Several analysts recently weighed in on KLAC shares. UBS Group raised their target price on shares of KLA from $775.00 to $960.00 and gave the company a "neutral" rating in a report on Monday, July 21st. Oppenheimer raised their target price on shares of KLA from $740.00 to $950.00 and gave the company an "outperform" rating in a report on Tuesday, June 17th. JPMorgan Chase & Co. raised their target price on shares of KLA from $900.00 to $1,070.00 and gave the company an "overweight" rating in a report on Friday, August 1st. The Goldman Sachs Group started coverage on shares of KLA in a report on Thursday, July 10th. They issued a "neutral" rating and a $980.00 target price on the stock. Finally, Wells Fargo & Company reaffirmed an "equal weight" rating and issued a $920.00 target price (up previously from $870.00) on shares of KLA in a report on Tuesday, July 8th. Eleven research analysts have rated the stock with a hold rating and eight have assigned a buy rating to the stock. Based on data from MarketBeat.com, KLA has a consensus rating of "Hold" and a consensus target price of $890.59.

Insider Transactions at KLA

In other news, CEO Richard P. Wallace sold 10,801 shares of the business's stock in a transaction that occurred on Tuesday, August 12th. The stock was sold at an average price of $913.68, for a total transaction of $9,868,657.68. Following the sale, the chief executive officer owned 92,818 shares of the company's stock, valued at $84,805,950.24. The trade was a 10.42% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CAO Virendra A. Kirloskar sold 39 shares of the firm's 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 transaction, the chief accounting officer directly owned 2,616 shares of the company's stock, valued at approximately $2,332,164. This trade represents a 1.47% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders sold 11,859 shares of company stock valued at $10,684,449. Corporate insiders own 0.12% of the company's stock.

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.