In a recent transaction, Brian Lorig, Executive Vice President of KLA Corp (NASDAQ:KLAC), sold shares of the company's stock, resulting in a significant transaction for investors to note. On August 6, 2024, Lorig sold 1,291 shares at a price of $705.01 each, totaling over $910,167.
This sale was part of a pre-arranged trading plan, known as a Rule 10b5-1 trading plan, which Lorig adopted on February 2, 2024. Such plans allow company insiders to sell shares over a predetermined period of time, reducing the potential for any accusations of trading on inside information.
In addition to the sale, Lorig also reported transactions that were automatically executed to satisfy tax withholding obligations as part of his compensation package. Specifically, shares of KLA Corp's common stock were withheld upon the vesting of restricted stock units (RSUs). On the same date as the sale, 501.254 and 1,504.258 shares were withheld at a price of $703.48 per share, amounting to a total of $1,410,837 for tax purposes.
These withholdings occurred in line with the vesting of RSUs granted on August 6, 2020. Twenty-five percent of these RSUs vested on the transaction date, while the remaining fifty percent were performance-based RSUs from the same grant date.
Following these transactions, Lorig's ownership in KLA Corp includes 16,701.578 shares, which accounts for shares issuable upon vesting of remaining RSUs.
Investors often monitor insider transactions like these for insights into executive sentiment and for indications of how corporate insiders are acting on their stock holdings. While sales and withholdings for tax purposes are common and scheduled, they still provide a glimpse into the movements of shares by those with the most intimate knowledge of the company.
In other recent news, KLA Corporation has been in the spotlight due to its fiscal fourth-quarter 2024 results, which exceeded consensus expectations. This marked the first year-over-year growth in both sales and non-GAAP EPS after five quarters, leading Argus to raise its price target on KLA's shares. The company also revealed its strategic decision to exit the flat panel display business to focus on its core offerings in process control and metrology.
KLA's recent management restructuring and appointment of Oreste Donzella as the new Chief Strategy Officer were also highlighted. TD Cowen and JPMorgan upgraded KLA's share target, recognizing the company's ability to capitalize on current industry dynamics. KLA's services segment saw significant growth, contributing to strong performance.
The company's optimistic outlook for the September quarter, with revenue and EPS projections exceeding expectations, was also noted. The Advanced Packaging (NYSE:PKG) market has been identified as an emerging revenue opportunity, estimated to reach approximately $500 million by 2024. These developments underline KLA's recent strides in financial performance and strategic moves in the semiconductor industry.
InvestingPro Insights
Amidst the insider transactions at KLA Corp (NASDAQ:KLAC), investors seeking a broader understanding of the company's financial health can look at several key metrics. KLA Corp, a prominent player in the semiconductors and semiconductor equipment industry, is trading at a high earnings multiple with a P/E ratio of 36.42, reflecting a premium valuation compared to some of its peers. Adjusted for the last twelve months as of Q4 2024, the P/E ratio is slightly lower at 33.35, which may still indicate investor confidence in the company's future profitability.
The company's market cap stands at a robust $100.53 billion, underscoring its significant presence in the market. Despite recent price fluctuations, with a one-month price total return of -19.48%, KLA Corp has demonstrated a strong return over the last five years. This is further supported by its revenue growth in Q4 2024 at 9.07% on a quarterly basis, showcasing its ability to expand sales amidst challenging market conditions.
Furthermore, KLA Corp has a history of rewarding investors, having raised its dividend for 8 consecutive years and maintained dividend payments for 20 consecutive years. The dividend yield as of the data provided is 0.83%, coupled with a dividend growth of 11.54% in the last twelve months as of Q4 2024, which may appeal to income-focused investors. For those looking for more detailed analysis, there are currently 18 additional InvestingPro Tips listed on InvestingPro, which can provide deeper insights into KLA Corp's financials and market performance.
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