KLA Corp (NASDAQ:KLAC) executive vice president Brian Lorig recently engaged in transactions involving the company's stock, according to the latest filings. On one hand, Lorig sold 44 shares of common stock on July 2, 2024, for a total of approximately $36,053, with the price per share averaging $819.4. On the other hand, the executive purchased 44.612 shares on June 28, 2024, for a total value near $21,250, at a discounted price of $476.332 per share under the company's employee stock purchase plan.
The sell transaction was conducted in accordance with a pre-arranged Rule 10b5-1 trading plan, which allows company insiders to sell stocks at a predetermined time to avoid accusations of trading on nonpublic information. The purchase, on the other hand, was made through KLA Corp's employee stock purchase plan, which often allows employees to buy company stock at a discount. The purchase price represented 85% of the closing price of KLA Corp's common stock on January 2, 2024, the first day of the offering period under the plan.
Following these transactions, Lorig's holdings in KLA Corp common stock have changed, but still include 10,209 shares that are issuable upon the vesting of restricted stock units (RSUs). The executive's actions reflect routine trading under the frameworks provided for corporate insiders, allowing them to manage their stock holdings in the company while complying with regulatory requirements.
KLA Corp, headquartered in Milpitas, California, specializes in optical instruments and lenses and operates under the Industrial Applications and Services sector. The company has a history of name changes, previously known as KLA Tencor Corp and KLA Instruments Corp, and is incorporated in Delaware.
In other recent news, KLA Corporation has been making significant strides, with JPMorgan maintaining an 'Overweight' rating on the company's stock amid expectations of robust growth in semiconductor capital spending. The corporation's strategic diversification through the acquisition of Orbotech is seen as a key contributor to its market share gains and overall growth. KLA Corporation recently reported strong third-quarter results, surpassing analyst expectations with an adjusted earnings per share (EPS) of $5.26 and revenue reaching $2.36 billion. The company's guidance for the fourth quarter of 2024 is optimistic, projecting an adjusted EPS range of $5.47 to $6.67 and forecasted revenue of $2.5 billion. Additionally, KLA announced a strategic decision to exit its flat panel display (FPD) business by the end of 2024, a move anticipated by analysts at Citi, who subsequently raised KLA's price target to $725. Analysts from Argus and Stifel also raised their price targets for KLA, to $800 and $760 respectively, while TD Cowen increased its price target to $700, all citing strong fundamentals and a positive growth outlook. These are recent developments for KLA Corporation, highlighting the company's robust financial performance and strategic decisions.
InvestingPro Insights
As KLA Corp (NASDAQ:KLAC) executives navigate the waters of stock transactions, it's worth noting the broader financial context in which these trades are taking place. KLA Corp's market capitalization stands robust at $114.16 billion, reflecting a significant presence in the industry. With a price-to-earnings (P/E) ratio of 44.66, the company is trading at a high earnings multiple, which might indicate investor confidence in its future growth or a market premium for its shares.
The company's commitment to returning value to shareholders is evident, with a notable dividend growth of 11.54% over the last twelve months as of Q3 2023. This is part of a longer trend, as KLA Corp has raised its dividend for 8 consecutive years, showcasing its stability and reliability in providing shareholder returns. Moreover, the price of KLA Corp's stock has been performing strongly, with a 1-year price total return of 77.73%, signaling robust market performance and potentially increased investor interest.
For investors seeking a more in-depth analysis, there are additional InvestingPro Tips available. These tips delve into KLA Corp's valuation multiples, its position within the Semiconductors & Semiconductor Equipment industry, and its financial health, among other aspects. For those interested, there are 17 more InvestingPro Tips to explore, providing a comprehensive view of the company's financial landscape. Investors looking to capitalize on these insights can use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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