Bahl & Gaynor Inc. has reduced its stake in KLA Corporation (NASDAQ: KLAC) by 1.7% during the second quarter, according to a recent filing with the Securities and Exchange Commission (SEC). The institutional investor now holds 53,534 shares of the semiconductor firm, valued at approximately $47.95 million after selling 913 shares in the period.
The adjustment in holdings comes as other hedge funds also made changes to their positions in KLA. Strs Ohio acquired a new stake valued at $26.47 million in the first quarter, while Acadian Asset Management LLC increased its stake by 37.7%, bringing its total to 41,784 shares worth around $28.4 million after purchasing an additional 11,442 shares. Inspire Investing LLC expanded its holdings by 9.3% during the same timeframe, now owning 16,370 shares valued at $11.13 million.
As of now, institutional investors collectively own 86.65% of KLA’s stock, indicating strong confidence in the company’s future.
Analyst Ratings and Price Targets
Equities analysts have been closely monitoring KLA’s performance and have issued several ratings. On August 1, Raymond James Financial reaffirmed an “outperform” rating for KLA, raising its price target from $850.00 to $950.00. Additionally, Barclays increased its target price from $1,200.00 to $1,300.00, giving the company an “overweight” rating.
The trends continued with Bank of America, which raised its price target from $1,000.00 to $1,300.00 while maintaining a “buy” rating. UBS Group and TD Cowen followed suit, adjusting their price targets to $1,260.00 and $1,300.00, respectively. Presently, twelve analysts have rated KLA with a Buy, while fourteen have issued a Hold rating. The average rating stands at “Hold,” with a consensus price target of $1,241.50.
KLA Financial Performance and Dividend Announcement
KLA Corporation has shown remarkable financial strength, with shares opening at $1,097.12 on Friday, October 29, 2023. The company boasts a market capitalization of $144.15 billion and a price-to-earnings (P/E) ratio of 34.45. Recent earnings data revealed an earnings per share (EPS) of $8.81 for the quarter, exceeding the consensus estimate of $8.47. The firm reported revenues of $3.21 billion, surpassing analyst predictions of $3.17 billion, marking a 13.0% year-over-year increase.
KLA also declared a quarterly dividend, set to be paid on December 2, 2023. Shareholders of record by November 17 will receive a dividend of $1.90 per share, translating to an annualized dividend of $7.60 and a yield of 0.7%. The dividend payout ratio currently stands at 23.86%.
In the realm of insider trading, CEO Richard P. Wallace sold 10,803 shares on November 11 at an average price of $1,203.10, resulting in a transaction value of approximately $12.99 million. Following this sale, Wallace’s total shareholding decreased to 81,211 shares, valued at around $97.70 million. Similarly, insider Ahmad A. Khan sold 13,716 shares on August 29, further reflecting insider activity.
KLA Corporation specializes in designing, manufacturing, and marketing process control and yield management solutions for the semiconductor industry, alongside related electronics sectors. The firm operates through three primary segments: Semiconductor Process Control, Specialty Semiconductor Process, and PCB and Component Inspection.
For those interested in tracking KLA’s performance or other hedge fund activities, more information can be found on finance platforms that monitor institutional holdings and insider trades.
