Exploring KLA Corporation (KLAC) Investor Profile: Who’s Buying and Why?

Ever wondered who's investing in KLA Corporation (KLAC) and what's driving their interest? As of April 16, 2025, KLA's stock trades at $642.19 per share. Institutional investors hold a significant 86.04% ownership in KLA, with 2656 institutional owners and shareholders that have filed 13D/G or 13F forms with the Securities Exchange Commission (SEC). Is it the company's robust revenue growth of 23.70% and free cash flow of approximately $2.47 billion, or perhaps its impressive return on equity at 96.81%? Let's delve into the investor profile of KLA to uncover the key players and their motivations.

KLA Corporation (KLAC) Who Invests in KLA Corporation and Why?

Understanding the investor profile of KLA Corporation (KLAC) provides valuable insights into market sentiment and the factors driving investment decisions. A diverse range of investors, from retail to institutional, are drawn to KLAC for various reasons, shaping the company's ownership structure and stock performance. As of April 2025, KLA Corporation has a market capitalization of approximately $84.31 billion.

Here's a breakdown of the key investor types and their motivations:

• Institutional Investors: These entities, including mutual funds, pension funds, and insurance companies, hold a significant portion of KLAC shares. As of December 2024, institutional investors held approximately 88% of KLA Corporation's shares. According to Fintel, these institutions held a total of 137,430,695 shares. The largest institutional shareholders include:
  • Vanguard Group Inc: Holding approximately 13,484,468 shares.
  • BlackRock, Inc.: Holding approximately 12,053,711 shares.
  • State Street Corp: Holding approximately 6,096,504 shares.
  • Primecap Management Company: Holding approximately 5,184,569 shares.
• Retail Investors: Individual investors who buy and sell shares for their own accounts also contribute to KLAC's investor base. While their collective holdings are smaller than those of institutions, their participation can influence market dynamics.
• Hedge Funds: These funds employ various strategies, including long-term and short-term positions, to generate returns. Hedge funds held 11.1% of KLA Corporation's shares.

These institutions hold a total of 137,430,695 shares.

Investment Motivations

Several factors attract investors to KLA Corporation:

• Growth Prospects: KLA operates in the semiconductor equipment and materials industry, which is experiencing growth due to increasing demand for semiconductors in various applications, including AI, 5G, and IoT. KLA's strategic initiatives in semiconductor process control, inspection tools, and metrology systems position it well to capitalize on industry trends.
• Market Position: KLA holds a dominant position in the process control market within the wafer fabrication equipment (WFE) sector. KLA is one of the largest providers in the world of wafer fabrication equipment for semiconductors, specializing in process control.
• Financial Performance: KLA has demonstrated strong financial performance, with impressive revenue growth and free cash flow. In 2024, KLA Corporation's revenue was $9.81 billion. The company boasts an impressive revenue growth rate of 23.70%, underpinned by a robust free cash flow of approximately $2.47 billion.
• Dividends: KLA pays a quarterly dividend, making it attractive to income-seeking investors. The last dividend per share was $1.70 USD. As of today, Dividend Yield (TTM)% is 0.99%.

Investment Strategies

Investors in KLA Corporation employ various strategies:

• Long-Term Holding: Many institutional investors adopt a long-term holding strategy, driven by KLA's strong market position and growth prospects.
• Value Investing: Some investors may be attracted to KLA's stock if they believe it is undervalued relative to its intrinsic worth, considering its financial performance and growth potential.
• Growth Investing: Growth investors focus on companies with high growth potential. Deutsche Bank raised the company's stock target to $850 from $725, while maintaining a Buy rating.
• Income Investing: Income investors may be drawn to KLA's dividend payments, seeking a steady stream of income from their investment. KLA offers a modest dividend yield of 1.06%, with a conservative payout ratio of 25.46%.

Here's a summary of KLA Corporation's key financial data:

KLA Corporation's investor profile reflects a mix of institutional and retail investors with varying investment motivations and strategies. The company's strong market position, growth prospects, and financial performance attract long-term investors, while its dividend payments appeal to income-seeking investors. Understanding these dynamics can help investors make informed decisions about KLA stock. You might also enjoy reading Mission Statement, Vision, & Core Values of KLA Corporation (KLAC).

KLA Corporation (KLAC) Institutional Ownership and Major Shareholders of KLA Corporation (KLAC)

Institutional ownership in KLA Corporation (KLAC) reflects the extent to which large financial organizations, such as mutual funds, pension funds, and hedge funds, hold the company's stock. These institutional investors can significantly influence a company's stock price and overall market perception due to the large volumes of shares they trade. Understanding the composition and activities of these major shareholders provides valuable insights into the stability and potential movements of KLA Corporation (KLAC)'s stock.

Here are some of the top institutional investors in KLA Corporation (KLAC) and details about their shareholdings:

• Vanguard Group: As of March 31, 2024, Vanguard Group holds the largest number of shares in KLA Corporation (KLAC), with a total of 11,688,896 shares, representing 8.48% ownership.
• BlackRock Fund Advisors: BlackRock Fund Advisors is another major institutional investor. As of March 31, 2024, they hold 7,828,975 shares, accounting for approximately 5.68% of the company's outstanding shares.
• State Street Global Advisors: State Street Global Advisors reported holding 4,277,324 shares as of March 31, 2024, which translates to about 3.11% ownership in KLA Corporation (KLAC).
• Capital Research & Management Co.: As of December 31, 2023, Capital Research & Management Co. holds 3,979,997 shares.
• Geode Capital Management LLC: Geode Capital Management LLC holds 2,067,840 shares as of March 31, 2024.

The table below summarizes the shareholdings of these top institutional investors:

Changes in institutional ownership can provide insights into the sentiment of major investors regarding KLA Corporation (KLAC). Increases in holdings may indicate a positive outlook on the company's future performance, while decreases could suggest concerns or a shift in investment strategy.

For example, BlackRock Fund Advisors increased its holdings by 43,444 shares in the first quarter of 2024, showing a slight increase in confidence. On the other hand, Vanguard Group decreased its position by 12,664 shares during the same period, which could be due to portfolio rebalancing or a change in their investment thesis.

Institutional investors play a crucial role in KLA Corporation (KLAC)'s stock price and overall strategy. Their investment decisions can drive significant trading volume and influence market sentiment. Additionally, these large investors often engage with company management to express their views on strategic decisions, corporate governance, and financial performance. The collective actions of institutional investors can therefore impact the company's stock valuation and strategic direction.

For further insights into KLA Corporation (KLAC), you might find this resource helpful: Mission Statement, Vision, & Core Values of KLA Corporation (KLAC).

KLA Corporation (KLAC) Key Investors and Their Impact on KLA Corporation (KLAC)

Understanding the investor profile of KLA Corporation (KLAC) provides valuable insights into the company's stability, growth potential, and market perception. Examining who is investing in KLA Corporation (KLAC) and their motivations can shed light on the overall sentiment surrounding the stock. Here’s a detailed look at the key investors and their potential impact.

Institutional investors, mutual funds, and hedge funds are significant players in KLA Corporation (KLAC)'s investor landscape. These entities often hold large stakes, making their investment decisions crucial for the company's stock performance. Tracking their activity can offer clues about the future direction of the stock.

Notable investors in KLA Corporation (KLAC) include entities that manage substantial assets. While specific names and holdings can fluctuate, it is important to monitor major institutional holders as they can influence market sentiment. Recent moves by these investors, such as increasing or decreasing their positions, often signal their confidence or concerns about the company’s prospects.

Key investors may exert influence on KLA Corporation (KLAC)'s decisions through various channels:

• Shareholder voting: Large shareholders have a greater say in corporate governance matters, including the election of board members and approval of major strategic decisions.
• Direct engagement with management: Major investors often have direct lines of communication with the company's management team, allowing them to voice their opinions and influence corporate strategy.
• Activist campaigns: In some cases, investors may launch activist campaigns to push for specific changes within the company, such as cost-cutting measures, strategic shifts, or increased shareholder returns.

Recent moves by key investors can provide insights into the current sentiment surrounding KLA Corporation (KLAC). For example, significant purchases by institutional investors may indicate confidence in the company's future growth prospects, while large sales could suggest concerns about potential challenges.

Keeping an eye on these activities helps in understanding the broader market perspective on KLA Corporation (KLAC). Here's a general overview of how different types of investors might influence the stock:

• Institutional Investors: These include mutual funds, pension funds, and insurance companies. Their actions can lead to significant stock movements due to the large volumes they trade.
• Retail Investors: Individual investors can collectively influence the stock, especially when there is a surge in interest driven by news or market trends.
• Hedge Funds: Known for their aggressive strategies, hedge funds can take large positions and may engage in short-selling, which can increase volatility.

For more insights into KLA Corporation (KLAC), you might find this resource helpful: KLA Corporation (KLAC): History, Ownership, Mission, How It Works & Makes Money.

KLA Corporation (KLAC) Market Impact and Investor Sentiment

Understanding investor sentiment and market reactions to ownership changes is crucial for gauging the potential future performance of KLA Corporation (KLAC). Examining the moves of major shareholders and analysts' perspectives provides valuable insights into the company's trajectory.

Recent data and analysis provide a snapshot of investor sentiment towards KLA Corporation. As of Q4 2023, KLA Corp's stock was included in 13F portfolios of 389 institutional investors. Hedge funds and other institutional investors hold the largest part of KLAC. Top holders include Vanguard Group, BlackRock Fund Advisors, and State Street Corporation. These major institutional holders often influence market perception due to the size of their stakes and their trading activities.

Recent market reactions to changes in ownership or large investor moves can significantly impact stock prices. For instance, a major institutional investor increasing its stake may signal confidence in the company's future, driving up demand and the stock price. Conversely, a large sell-off could indicate concerns, leading to a price decline. Monitoring these movements helps in understanding the market's short-term and medium-term sentiment.

Analyst perspectives play a vital role in interpreting the impact of key investors on KLA Corporation's future. Analysts at firms like Stifel Nicolaus and others provide ratings and price targets that reflect their assessment of the company's prospects. For example, an analyst might upgrade KLA Corporation's rating based on strong financial performance or strategic initiatives, which can further bolster investor confidence. As of March 2024, the consensus among 23 analysts is to Buy KLA Corp shares. The 12-month stock price forecast is $716.68, with a high estimate of $835.00 and a low estimate of $575.00.

Here's a summary of analyst ratings for KLA Corporation:

The prevailing sentiment suggests a positive outlook, with a majority of analysts recommending to buy the stock.

Key factors influencing investor sentiment include:

• Financial Performance: Revenue growth, profit margins, and earnings per share (EPS) are critical indicators.
• Market Position: KLA Corporation's competitive standing in the semiconductor equipment industry.
• Technological Innovation: Advances in inspection and metrology solutions.
• Macroeconomic Factors: Global economic conditions and industry-specific trends.

Understanding these elements provides a more rounded view of why investors are behaving in certain ways, and how these actions might affect KLA Corporation.

Further insights into KLA Corporation's strategic direction can be found at Mission Statement, Vision, & Core Values of KLA Corporation (KLAC).