KLA (NASDAQ:KLAC) Hits New 12-Month High - Here's Why

KLA Corporation (NASDAQ:KLAC - Get Free Report) shares hit a new 52-week high during mid-day trading on Wednesday . The company traded as high as $931.96 and last traded at $922.15, with a volume of 65580 shares. The stock had previously closed at $919.22.

Analyst Ratings Changes

Several research analysts have issued reports on KLAC shares. Barclays lowered their price objective on shares of KLA from $760.00 to $590.00 and set an "equal weight" rating on the stock in a research report on Tuesday, April 22nd. Cowen reiterated a "hold" rating on shares of KLA in a research note on Thursday, May 1st. Morgan Stanley boosted their price target on KLA from $868.00 to $916.00 and gave the company an "overweight" rating in a research report on Tuesday, July 1st. Wall Street Zen downgraded KLA from a "buy" rating to a "hold" rating in a research note on Saturday, July 5th. Finally, JPMorgan Chase & Co. lowered their target price on KLA from $950.00 to $900.00 and set an "overweight" rating on the stock in a research note on Thursday, May 1st. Eleven research analysts have rated the stock with a hold rating and nine have assigned a buy rating to the company's stock. According to MarketBeat, KLA presently has a consensus rating of "Hold" and a consensus price target of $840.33.

KLA Price Performance

The stock has a market cap of $122.66 billion, a price-to-earnings ratio of 33.71, a PEG ratio of 1.71 and a beta of 1.42. The company's 50 day moving average is $817.26 and its 200 day moving average is $739.01. The company has a debt-to-equity ratio of 1.47, a current ratio of 2.54 and a quick ratio of 1.74.

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

KLA Increases Dividend

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

KLA declared that its board has authorized a stock buyback plan on Wednesday, April 30th that allows the company to buyback $5.00 billion in shares. This buyback authorization allows the semiconductor company to repurchase up to 5.4% of its stock through open market purchases. Stock buyback plans are generally a sign that the company's management believes its stock is undervalued.

Insider Buying and Selling at KLA

In other news, CAO Virendra A. Kirloskar sold 39 shares of the firm's stock in a transaction that occurred on Wednesday, July 2nd. The shares were sold at an average price of $891.50, for a total transaction of $34,768.50. Following the completion of the transaction, the chief accounting officer directly owned 2,616 shares of the company's stock, valued at $2,332,164. This trade represents a 1.47% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CFO Bren D. Higgins sold 1,019 shares of the company's stock in a transaction that occurred on Thursday, May 22nd. The shares were 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. The trade was a 3.54% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 11,860 shares of company stock valued at $8,196,798 over the last quarter. Corporate insiders own 0.12% of the company's stock.

Institutional Trading of KLA

Several institutional investors and hedge funds have recently made changes to their positions in KLAC. Proficio Capital Partners LLC raised its position in shares of KLA by 81.9% in the fourth quarter. Proficio Capital Partners LLC now owns 544 shares of the semiconductor company's stock valued at $342,000 after buying an additional 245 shares during the last quarter. Ashton Thomas Private Wealth LLC grew its stake in KLA by 6.9% in the 4th quarter. Ashton Thomas Private Wealth LLC now owns 341 shares of the semiconductor company's stock worth $215,000 after acquiring an additional 22 shares during the period. Zurcher Kantonalbank Zurich Cantonalbank raised its holdings in KLA by 6.9% in the 4th quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 32,916 shares of the semiconductor company's stock valued at $20,741,000 after acquiring an additional 2,132 shares during the last quarter. Johnson Investment Counsel Inc. raised its holdings in KLA by 15.5% in the 4th quarter. Johnson Investment Counsel Inc. now owns 2,422 shares of the semiconductor company's stock valued at $1,526,000 after acquiring an additional 325 shares during the last quarter. Finally, Independent Advisor Alliance lifted its stake in shares of KLA by 24.7% during the 4th quarter. Independent Advisor Alliance now owns 3,894 shares of the semiconductor company's stock worth $2,454,000 after purchasing an additional 772 shares during the period. 86.65% of the stock is currently owned by hedge funds and other institutional investors.

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.