According to a recent Form 13F filing with the Securities and Exchange Commission (SEC), StrategIQ Financial Group LLC has acquired a new stake in KLA Co. (NASDAQ:KLAC) during the second quarter. The financial firm purchased 454 shares of the semiconductor company’s stock, which are valued at approximately $220,000.
KLA released its quarterly earnings data on Thursday, July 27th, revealing that it reported an impressive $5.40 earnings per share for the quarter. This figure exceeded the consensus estimate of $4.82 by $0.58. The company’s net margin stood at an impressive 32.27%, while its return on equity reached an admirable 138.06%. While KLA generated $2.36 billion in revenue for the quarter, surpassing analyst estimates of $2.26 billion, it experienced a decline of 5.3% compared to the same period last year.
In a significant move, KLA announced on Tuesday, September 5th that its board has authorized a stock buyback program worth $2 billion in outstanding shares. This buyback authorization enables the semiconductor company to regain up to 2.9% of its shares through open market purchases – often seen as a sign that leadership perceives their shares as undervalued.
The current analyst reports on KLA Co.’s performance have been mixed. Stifel Nicolaus recently increased their price target on KLA from $450 to $535 and issued a “buy” rating for the company in their research note dated July 28th. Similarly, Citigroup raised their price target from $480 to $570 on July 31st.
However, Needham & Company LLC downgraded KLA from “buy” to “hold” rating in their research note published on June 14th, offering an alternative perspective. StockNews.com also initiated coverage on KLA with a “hold” rating on August 17th. Finally, Wells Fargo & Company raised its price target from $500 to $575 and awarded the stock an “overweight” rating on July 28th.
Overall, according to data from Bloomberg.com, the consensus rating for KLA is currently listed as “Hold,” with an average target price of $463.11. As we navigate through September 26, 2023, it will be interesting to observe how KLA Co. continues to maneuver and respond to market dynamics to deliver growth and value for its shareholders.
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Institutional Investors Increase Holdings in KLA Corporation as Executives Sell Shares
On September 26, 2023, it was reported that several institutional investors and hedge funds have made changes to their holdings in KLA Corporation (KLAC). Shelton Capital Management increased its ownership in the semiconductor company by 7.9% during the first quarter of the year. Trust Co. of Toledo NA OH also saw growth in its position, with a 93.3% increase during the second quarter. Handelsbanken Fonder AB and Catalyst Capital Advisors LLC similarly expanded their holdings in KLA during the first quarter.
Shelton Capital Management now owns 12,058 shares of KLA’s stock, valued at approximately $4,813,000 after acquiring an additional 880 shares. Trust Co. of Toledo NA OH currently holds 1,858 shares worth around $901,000 after purchasing an additional 897 shares. Handelsbanken Fonder AB’s ownership has grown to 42,004 shares valued at $16,767,000 following an acquisition of an additional 2,043 shares. Catalyst Capital Advisors LLC is now in possession of 11,294 shares worth $4,508,000 after obtaining an extra 1,158 shares. Valeo Financial Advisors LLC also witnessed a rise in its stake by 13.1%, owning 697 shares amounting to $338,000.
Interestingly enough, approximately 85.49% of the stock is currently held by institutional investors and hedge funds combined.
In terms of executive movements within KLA Corporation, it was revealed that Chief Accounting Officer Virendra A. Kirloskar sold off a total of 2,621 company shares on August 14th for approximately $1,243,795.55 or an average price per share of $474.55.In relation to this transaction,the Chief Accounting Officer now directly possesses roughly3 ,699 company shares with a value amountg tof $1 ,755 ,360.45 These details had to be disclosed in a filing with the Securities & Exchange Commission.
Furthermore, another KLA executive, EVP Brian Lorig, sold 66 shares of the corporation’s stock on July 5th for an average price of $475.30 per share. After this sale, Lorig now owns 23,231 shares valued at approximately $11,041,694.30.
In the past three months alone, company insiders have sold a total of 47,141 shares worth $23,496,464.This amounts to only around 0.12% of the overall stock being owned by company insiders.
The latest significant update from KLA Corporation is its announcement that its board has approved a stock buyback program on September 5th. The program allows for the repurchase of up to $2.00 billion worth of outstanding shares through open market purchases.The fact that KLA seeks to buy back its own shares often indicates that the company’s management believes its current stock value does not reflect its true worth and is undervalued.
As of September 26th, KLA’s stock opened at $455.39 per share. The company has a market capitalization totalling $62.26 billion and possesses a PE ratio of 18.90 and PEG ratio of 2.17.Significantly,the beta is reported as1 .35 indicating thesecurity’s returns’ volatility vis-a-vis general trends in the market.Further highlighting KLAC’s performance in recent history is information regarding its highest and lowest recorded priceswithin the last twelve months; respectively amountingto$520 .19and$250 .20.Moreover,it merits notingthe presented figures were calculated consideringthe firm’sfifty-day moving averageof$484 .89 and its two hundred-day moving averageof$441 .08.Additionally,KLA hasa quickratioof1 .47,a current ratioof2 .24,and a debt-to-equity ratioof2 .02.
