KLA (NASDAQ:KLAC) Stock Bumped Down to Hold by Zacks Research

Zacks Research downgraded shares of KLA (NASDAQ:KLAC) from a strong-buy rating to a hold rating in a research report sent to investors on Monday,Zacks reports.

Several other research analysts also recently commented on the stock. Cantor Fitzgerald reissued an “overweight” rating and issued a $325.00 price target on shares of KLA in a report on Wednesday, July 29th. The Goldman Sachs Group reaffirmed a “neutral” rating and issued a $230.00 price target on shares of KLA in a report on Tuesday, July 28th. Stifel Nicolaus set a $250.00 price objective on KLA and gave the stock a “buy” rating in a research report on Wednesday, July 29th. Jefferies Financial Group reissued a “buy” rating and set a $210.00 price objective (up from $200.00) on shares of KLA in a research note on Wednesday, July 29th. Finally, Morgan Stanley restated an “overweight” rating and set a $253.00 target price on shares of KLA in a research report on Wednesday, July 29th. Nineteen research analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, KLA currently has a consensus rating of “Moderate Buy” and a consensus price target of $222.22.

KLA Trading Up 3.9%

Shares of KLAC opened at $196.53 on Monday. The business’s 50-day moving average price is $187.56 and its 200-day moving average price is $193.00. KLA has a twelve month low of $98.10 and a twelve month high of $307.37. The stock has a market cap of $256.47 billion, a PE ratio of 53.59, a P/E/G ratio of 1.68 and a beta of 1.45. The company has a quick ratio of 2.03, a current ratio of 2.88 and a debt-to-equity ratio of 0.93.

KLA (NASDAQ:KLAC) last announced its quarterly earnings results on Tuesday, July 28th. The semiconductor company reported $1.05 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.00 by $0.05. The firm had revenue of $3.66 billion for the quarter, compared to the consensus estimate of $3.61 billion. KLA had a net margin of 35.57% and a return on equity of 87.66%. The company’s revenue for the quarter was up 15.2% on a year-over-year basis. During the same period in the prior year, the firm posted $0.94 earnings per share. KLA has set its Q1 2027 guidance at 1.060-1.260 EPS. On average, equities analysts forecast that KLA will post 5.41 EPS for the current fiscal year.

KLA Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, September 1st. Stockholders of record on Monday, August 17th were issued a $0.23 dividend. This represents a $0.92 dividend on an annualized basis and a dividend yield of 0.5%. The ex-dividend date of this dividend was Monday, August 17th. This is a positive change from KLA’s previous quarterly dividend of $0.23. KLA’s payout ratio is currently 25.07%.

Insider Activity

In related news, CFO Bren D. Higgins sold 27,701 shares of the company’s stock in a transaction on Thursday, July 2nd. The shares were sold at an average price of $265.69, for a total value of $7,359,878.69. Following the completion of the transaction, the chief financial officer directly owned 263,472 shares in the company, valued at approximately $70,001,875.68. The trade was a 9.51% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CAO Virendra Kirloskar sold 4,504 shares of the stock in a transaction on Wednesday, August 5th. The shares were sold at an average price of $195.50, for a total value of $880,532.00. Following the completion of the transaction, the chief accounting officer directly owned 7,972 shares in the company, valued at approximately $1,558,526. This represents a 36.10% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 271,040 shares of company stock worth $54,263,333. Corporate insiders own 79.39% of the company’s stock.

Hedge Funds Weigh In On KLA

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Allied Private Wealth LLC bought a new position in shares of KLA during the 2nd quarter valued at about $27,000. Atomic Invest LLC lifted its position in KLA by 781.8% in the 2nd quarter. Atomic Invest LLC now owns 97 shares of the semiconductor company’s stock worth $27,000 after buying an additional 86 shares during the last quarter. Roble Belko & Company Inc lifted its position in KLA by 2,275.0% in the 2nd quarter. Roble Belko & Company Inc now owns 95 shares of the semiconductor company’s stock worth $29,000 after buying an additional 91 shares during the last quarter. Carolina Wealth Advisors LLC boosted its stake in KLA by 900.0% in the second quarter. Carolina Wealth Advisors LLC now owns 100 shares of the semiconductor company’s stock worth $30,000 after buying an additional 90 shares in the last quarter. Finally, Cherry Tree Wealth Management LLC boosted its stake in KLA by 900.0% in the second quarter. Cherry Tree Wealth Management LLC now owns 120 shares of the semiconductor company’s stock worth $36,000 after buying an additional 108 shares in the last quarter. 86.65% of the stock is currently owned by hedge funds and other institutional investors.

About KLA

KLA Corporation (NASDAQ: KLAC) develops process-control and yield-management solutions used by semiconductor and electronics manufacturers. Its systems help customers detect defects, measure and analyze materials and structures, and monitor manufacturing processes throughout the production of integrated circuits and other advanced electronic components.

The company’s product portfolio includes inspection and metrology systems, wafer and reticle inspection equipment, process-control software, data analytics tools, and related services.