KLA Corp (NASDAQ:KLAC) has reported a significant transaction involving its Executive Vice President and Chief Financial Officer, Bren D. Higgins. According to the latest filing, Higgins sold 7,018 shares of the company's common stock, totaling over $4.9 million.
The transaction took place on March 26, with the shares being sold at a price of $705.04 each. This sale was carried out under a prearranged trading plan, known as a Rule 10b5-1 plan, which Higgins had adopted on February 23, 2023. Such plans allow company insiders to sell a predetermined number of shares at a predetermined time to avoid accusations of insider trading.
Following this transaction, Higgins still has a substantial stake in the company. The number of shares of KLA common stock he owns includes 21,433 shares that are issuable upon the vesting of restricted stock units (RSUs).
Investors often keep a close eye on insider transactions as they can provide insights into an executive's confidence in the company's future performance. KLA Corp, with its headquarters in Milpitas, California, specializes in optical instruments and lenses and is a key player in the industrial applications and services sector.
The transaction was officially signed off by Jeffrey S. Cannon, as attorney-in-fact for Bren D. Higgins, on March 28.
InvestingPro Insights
KLA Corp's financial landscape presents a mix of strengths and cautionary signals as reflected in recent InvestingPro data and tips. With a market capitalization of $94.47 billion and a robust P/E ratio of 35.21, the company stands as a significant entity in the semiconductor industry. While the P/E ratio has adjusted slightly downward in the last twelve months as of Q2 2024 to 32.75, it's still indicative of a high earnings multiple, suggesting that investors have high expectations for future earnings growth.
Notably, KLA has a history of rewarding its shareholders, raising its dividend for 8 consecutive years and maintaining dividend payments for 20 consecutive years. This is reflected in the company's dividend growth of 11.54% over the last twelve months as of Q2 2024, with a current yield of 0.83%. The commitment to dividends might signal confidence in the company's financial health and long-term strategy to InvestingPro users.
However, there are areas of concern that investors should be aware of. Analysts have revised their earnings expectations downwards for the upcoming period, and there is an anticipation of a sales decline in the current year, with revenue growth figures showing a decrease of 7.75% in the last twelve months as of Q2 2024. This could be a reflection of broader market trends or specific challenges within the semiconductor industry.
Investors interested in a deeper analysis can find additional insights and metrics on InvestingPro, with 18 more InvestingPro Tips available for KLA Corp, providing a comprehensive view of the company's financial health. To explore these insights further, consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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