Fintel reports that on July 28, 2023, Stifel maintained coverage of KLA (NASDAQ:KLAC) with a Buy recommendation.
Analyst Price Forecast Suggests 10.17% Downside
As of July 5, 2023, the average one-year price target for KLA is 459.00. The forecasts range from a low of 322.19 to a high of $588.00. The average price target represents a decrease of 10.17% from its latest reported closing price of 510.95.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for KLA is 8,782MM, a decrease of 16.33%. The projected annual non-GAAP EPS is 19.12.
- For more in-depth coverage of KLA, view the free, crowd-sourced company research report on Finpedia.
KLA Declares $1.30 Dividend
On May 4, 2023 the company declared a regular quarterly dividend of $1.30 per share ($5.20 annualized). Shareholders of record as of May 15, 2023 received the payment on June 1, 2023. Previously, the company paid $1.30 per share.
At the current share price of $510.95 / share, the stock's dividend yield is 1.02%.
Looking back five years and taking a sample every week, the average dividend yield has been 1.77%, the lowest has been 0.95%, and the highest has been 3.69%. The standard deviation of yields is 0.66 (n=236).
The current dividend yield is 1.13 standard deviations below the historical average.
Additionally, the company's dividend payout ratio is 0.21. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.
The company's 3-Year dividend growth rate is 0.53%, demonstrating that it has increased its dividend over time.
What is the Fund Sentiment?
There are 2223 funds or institutions reporting positions in KLA. This is an increase of 88 owner(s) or 4.12% in the last quarter. Average portfolio weight of all funds dedicated to KLAC is 0.47%, an increase of 5.60%. Total shares owned by institutions decreased in the last three months by 1.40% to 147,302K shares. 
The put/call ratio of KLAC is 1.19, indicating a bearish outlook.
What are Other Shareholders Doing?
Primecap Management holds 6,350K shares representing 4.63% ownership of the company. In it's prior filing, the firm reported owning 6,772K shares, representing a decrease of 6.65%. The firm decreased its portfolio allocation in KLAC by 5.45% over the last quarter.
Capital International Investors holds 5,925K shares representing 4.32% ownership of the company. In it's prior filing, the firm reported owning 6,149K shares, representing a decrease of 3.78%. The firm decreased its portfolio allocation in KLAC by 2.26% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 4,286K shares representing 3.12% ownership of the company. In it's prior filing, the firm reported owning 4,307K shares, representing a decrease of 0.50%. The firm decreased its portfolio allocation in KLAC by 2.73% over the last quarter.
Envestnet Asset Management holds 3,871K shares representing 2.82% ownership of the company. In it's prior filing, the firm reported owning 256K shares, representing an increase of 93.40%. The firm increased its portfolio allocation in KLAC by 5.07% over the last quarter.
VPMCX - Vanguard PRIMECAP Fund Investor Shares holds 3,791K shares representing 2.76% ownership of the company. In it's prior filing, the firm reported owning 4,003K shares, representing a decrease of 5.59%. The firm decreased its portfolio allocation in KLAC by 5.37% over the last quarter.
KLA Background Information
(This description is provided by the company.)
KLA develops industry-leading equipment and services that enable innovation throughout the electronics industry. We provide advanced process control and process-enabling solutions for manufacturing wafers and reticles, integrated circuits, packaging, printed circuit boards and flat panel displays. In close collaboration with leading customers across the globe, our expert teams of physicists, engineers, data scientists and problem-solvers design solutions that move the world forward.
Additional reading:
- Certificate of Designation Series A Preferred Stock
- Bridge Note dated January 17, 2020
- Deed of Novation and Assignment dated January 18, 2020
- Pledge of Collateral for Novation and Assignment dated January 18, 2020
- Amendment #1 to Senior Secured Convertible Promissory Note and Net Profits Interest Agreement dated March 4, 2019
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
