Institutional investors continue to hold a significant stake in KLA Corporation, with approximately 89% of the company's shares under their control. This substantial ownership plays a pivotal role in influencing the firm's share price. Among these institutions, 17 investors collectively hold a majority stake of 51%.
The company's market capitalization stands at an impressive 63.74 billion USD, as per InvestingPro data. Moreover, KLA Corporation has been operating with a high return on assets, 25.4% as of LTM2023.Q4, and consistently increasing earnings per share, which was 24.15 USD as of LTM2023.Q4. These metrics, combined with the fact that the company has raised its dividend for 7 consecutive years, with a recent dividend growth of 23.81% as per LTM2023.Q4, underline the firm's strong financial performance. This information is brought to you by InvestingPro, a platform that offers more insightful tips, and you can explore more about it here.
While these institutional investors experienced a 5.8% drop in the value of their holdings last week, they may have found some solace in the one-year returns of 59%, which is in line with the 58.6% one-year price total return as per InvestingPro data. Nevertheless, they are being cautioned about potential future losses, particularly during market downturns that could trigger rapid selling due to the risk of what is known as a 'crowded trade'.
The Vanguard Group, Inc., the largest shareholder among these institutions, holds a significant 9.5% of all shares. The professional credibility brought by these institutional investors to KLA Corporation is noteworthy and continues to shape investor sentiment toward the company. Yet, the investors should also be aware of the fact that the company's revenue growth has been slowing down recently, as it stood at 13.94% as of LTM2023.Q4, with a quarterly decline of 5.29% as of FY2023.Q4, as per InvestingPro data.
In conclusion, while KLA Corporation continues to be a prominent player in the Semiconductors and semiconductor Equipment industry, as per InvestingPro Tips, investors should keep a close eye on the company's performance metrics and market trends for making informed investment decisions.
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