KLA (NASDAQ:KLAC) Stock Gets Price Target Bump from JPMorgan Chase & Co.

Key Points

• JPMorgan raised KLA’s price target to $240 from $238 and maintained an “overweight” rating, implying 43.34% upside from the prior close. The broader analyst consensus is “Moderate Buy,” with an average target of $219.35.
• KLA reported quarterly revenue of $4.14 billion and adjusted EPS of $1.22, exceeding estimates of $4.04 billion and $1.18, respectively. Revenue grew 28.9% year over year, while management issued a stronger-than-expected next-quarter revenue outlook of $4.5 billion to $4.9 billion.
• KLA shares rose 5.5% to $167.43 during Thursday trading, amid a favorable semiconductor-equipment outlook driven by expected memory shortages and continued fab construction. However, insiders sold roughly $46.9 million of stock over the past 90 days.

KLA (NASDAQ:KLAC - Get Free Report) had its price objective boosted by equities research analysts at JPMorgan Chase & Co. from $238.00 to $240.00 in a research report issued on Thursday, Benzinga reports. The firm presently has an "overweight" rating on the semiconductor company's stock. JPMorgan Chase & Co.'s price objective suggests a potential upside of 43.34% from the stock's previous close.

Several other brokerages also recently weighed in on KLAC. TD Cowen reiterated a "buy" rating and set a $260.00 target price (up from $200.00) on shares of KLA in a report on Thursday, July 9th. Barclays reissued an "overweight" rating and issued a $225.00 price target on shares of KLA in a research report on Monday, July 20th. Jefferies Financial Group restated a "buy" rating and issued a $210.00 price target (up from $200.00) on shares of KLA in a research note on Wednesday, July 29th. Citigroup cut their price objective on KLA from $290.00 to $275.00 and set a "buy" rating on the stock in a research report on Thursday. Finally, Deutsche Bank Aktiengesellschaft reissued a "hold" rating and set a $195.00 target price (down from $220.00) on shares of KLA in a research note on Wednesday, July 29th. Nineteen analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the company's stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $219.35.

KLA Trading Up 5.5%

NASDAQ KLAC traded up $8.66 during trading on Thursday, hitting $167.43. The stock had a trading volume of 15,082,885 shares, compared to its average volume of 11,159,876. The company has a quick ratio of 2.03, a current ratio of 2.88 and a debt-to-equity ratio of 0.93. The company has a market capitalization of $218.50 billion, a PE ratio of 45.66, a PEG ratio of 1.29 and a beta of 1.45. The firm has a 50 day moving average price of $179.57 and a 200 day moving average price of $181.57. KLA has a twelve month low of $107.20 and a twelve month high of $307.37.

KLA (NASDAQ:KLAC - Get Free Report) last issued its quarterly earnings results on Wednesday, October 28th. The semiconductor company reported $1.22 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.18 by $0.04. KLA had a net margin of 35.57% and a return on equity of 87.66%. The business had revenue of $4.14 billion for the quarter, compared to analysts' expectations of $4.04 billion. During the same quarter in the prior year, the company earned $8.47 earnings per share. The business's quarterly revenue was up 28.9% on a year-over-year basis. As a group, equities research analysts forecast that KLA will post 5.43 earnings per share for the current year.

Insider Activity at KLA

In related news, CEO Richard P. Wallace sold 72,019 shares of the stock in a transaction on Tuesday, September 15th. The shares were sold at an average price of $171.88, for a total value of $12,378,625.72. Following the transaction, the chief executive officer directly owned 706,925 shares of the company's stock, valued at $121,506,269. This trade represents a 9.25% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, EVP Brian Lorig sold 59,586 shares of KLA stock in a transaction on Thursday, August 13th. The stock was sold at an average price of $208.13, for a total transaction of $12,401,634.18. Following the sale, the executive vice president owned 77,681 shares in the company, valued at $16,167,746.53. This represents a 43.41% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 243,339 shares of company stock worth $46,903,454 in the last ninety days. Company insiders own 79.39% of the company's stock.

Institutional Investors Weigh In On KLA

A number of institutional investors and hedge funds have recently bought and sold shares of KLAC. Cornerstone Planning Group LLC grew its stake in KLA by 36.4% during the first quarter. Cornerstone Planning Group LLC now owns 60 shares of the semiconductor company's stock worth $88,000 after buying an additional 16 shares during the period. Allied Private Wealth LLC acquired a new stake in shares of KLA in the second quarter worth $27,000. McIlrath & Eck LLC raised its stake in shares of KLA by 6.8% in the 1st quarter. McIlrath & Eck LLC now owns 94 shares of the semiconductor company's stock valued at $139,000 after acquiring an additional 6 shares during the period. Roble Belko & Company Inc raised its stake in shares of KLA by 2,275.0% in the 2nd quarter. Roble Belko & Company Inc now owns 95 shares of the semiconductor company's stock valued at $29,000 after acquiring an additional 91 shares during the period. Finally, Atomic Invest LLC raised its stake in shares of KLA by 781.8% in the 2nd quarter. Atomic Invest LLC now owns 97 shares of the semiconductor company's stock valued at $27,000 after acquiring an additional 86 shares during the period. 86.65% of the stock is owned by hedge funds and other institutional investors.

Key Stories Impacting KLA

Here are the key news stories impacting KLA this week:

• Positive Sentiment: KLA reported fiscal 2027 first-quarter revenue of $4.14 billion, exceeding the $4.04 billion consensus estimate, while adjusted EPS of $1.22 topped expectations of $1.18. Revenue increased 28.9% year over year, marking the company’s 10th consecutive quarter of growth. KLA Corporation Reports Fiscal 2027 First Quarter Results
• Positive Sentiment: Management’s fiscal second-quarter outlook was stronger than anticipated, calling for revenue of $4.5 billion to $4.9 billion, or roughly $4.7 billion at the midpoint. KLA also expects the wafer-fabrication equipment market to exceed $200 billion in 2027, reinforcing the outlook for semiconductor capital spending. KLA forecasts December-quarter revenue and wafer equipment market outlook
• Positive Sentiment: Cash generation remained strong, with quarterly operating cash flow of $1.53 billion and free cash flow of $1.34 billion. KLA returned $1.24 billion to shareholders during the quarter, supporting the investment case. KLA fiscal 2027 first-quarter results
• Positive Sentiment: Broader semiconductor-equipment shares benefited from expectations of prolonged memory shortages and years of additional fab construction, providing a favorable industry backdrop for KLA. Chip equipment stocks rally on memory shortage outlook

About KLA

KLA Corporation NASDAQ: KLAC develops process control, inspection and yield management solutions for the semiconductor and other advanced manufacturing industries. Its technologies help manufacturers identify defects, measure critical dimensions and monitor production processes to improve quality, reliability and manufacturing efficiency.

The company's product portfolio includes wafer and reticle inspection systems, metrology and measurement tools, defect review and classification systems, and software for analyzing manufacturing data.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.