KLA (NASDAQ:KLAC) Stock Gets Price Target Cut from Wells Fargo & Company

Key Points

• Wells Fargo lowered KLA’s price target from $245 to $210 while maintaining an Overweight rating, implying 23.57% potential upside from the $169.94 share price.
• Analyst sentiment remains broadly positive, with 19 Buy ratings and 10 Holds; however, UBS and Cantor Fitzgerald also recently cut their targets. The consensus rating is “Moderate Buy,” with an average target of $211.81.
• KLA exceeded quarterly expectations, reporting $4.14 billion in revenue and $1.22 in EPS, up 28.9% year over year in revenue. Management’s next-quarter revenue outlook of $4.5 billion to $4.9 billion points to continued semiconductor-equipment demand.

KLA (NASDAQ:KLAC - Get Free Report) had its target price lowered by equities researchers at Wells Fargo & Company from $245.00 to $210.00 in a research report issued on Thursday, Benzinga reports. The firm presently has an "overweight" rating on the semiconductor company's stock. Wells Fargo & Company's price objective indicates a potential upside of 23.57% from the company's current price.

A number of other research firms have also recently commented on KLAC. UBS Group reiterated a "neutral" rating and set a $180.00 price objective on shares of KLA in a research report on Thursday. Morgan Stanley restated an "overweight" rating on shares of KLA in a research note on Thursday. Jefferies Financial Group reiterated a "buy" rating and issued a $210.00 price target (up from $200.00) on shares of KLA in a report on Wednesday, July 29th. Cantor Fitzgerald dropped their price target on shares of KLA from $325.00 to $225.00 and set an "overweight" rating on the stock in a research note on Thursday. Finally, TD Cowen reaffirmed a "buy" rating and issued a $260.00 price target (up from $200.00) on shares of KLA in a research note on Thursday, July 9th. Nineteen analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the company. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $211.81.

KLA Stock Performance

Shares of KLAC stock traded up $11.17 during trading hours on Thursday, reaching $169.94. 3,628,042 shares of the company's stock were exchanged, compared to its average volume of 11,101,494. The company's 50 day moving average is $179.57 and its two-hundred day moving average is $181.57. The company has a debt-to-equity ratio of 0.93, a current ratio of 2.88 and a quick ratio of 2.03. The company has a market cap of $221.78 billion, a P/E ratio of 46.39, a price-to-earnings-growth ratio of 1.29 and a beta of 1.45. KLA has a 1 year low of $107.20 and a 1 year high of $307.37.

KLA (NASDAQ:KLAC - Get Free Report) last announced its quarterly earnings data on Wednesday, October 28th. The semiconductor company reported $1.22 EPS for the quarter, beating 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 firm had revenue of $4.14 billion during the quarter, compared to analysts' expectations of $4.04 billion. During the same quarter last year, the business earned $8.47 earnings per share. The business's revenue for the quarter was up 28.9% compared to the same quarter last year. Equities research analysts anticipate that KLA will post 5.43 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, EVP MaryBeth Wilkinson sold 13,802 shares of the stock in a transaction that occurred on Wednesday, August 5th. The stock was sold at an average price of $195.50, for a total value of $2,698,291.00. Following the completion of the sale, the executive vice president directly owned 22,110 shares of the company's stock, valued at approximately $4,322,505. This represents a 38.43% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Richard Wallace sold 72,019 shares of the business's stock in a transaction that occurred 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 sale, the chief executive officer owned 706,925 shares in the company, valued at approximately $121,506,269. This represents a 9.25% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 243,339 shares of company stock valued at $46,903,454 over the last ninety days. 79.39% of the stock is owned by insiders.

Institutional Investors Weigh In On KLA

Several large investors have recently modified their holdings of KLAC. Wellington Management Group LLP grew its position in KLA by 928.9% in the second quarter. Wellington Management Group LLP now owns 14,821,622 shares of the semiconductor company's stock valued at $4,471,832,000 after acquiring an additional 13,381,153 shares during the period. Bank of New York Mellon Corp bought a new stake in shares of KLA in the 2nd quarter worth about $2,522,430,000. Assenagon Asset Management S.A. grew its holdings in shares of KLA by 239.3% in the 3rd quarter. Assenagon Asset Management S.A. now owns 5,614,990 shares of the semiconductor company's stock worth $1,094,530,000 after purchasing an additional 3,959,927 shares during the last quarter. National Pension Service increased its position in shares of KLA by 899.4% during the 2nd quarter. National Pension Service now owns 3,634,859 shares of the semiconductor company's stock worth $1,096,673,000 after purchasing an additional 3,271,158 shares in the last quarter. Finally, PineStone Asset Management Inc. increased its position in shares of KLA by 11.5% during the 3rd quarter. PineStone Asset Management Inc. now owns 2,418,400 shares of the semiconductor company's stock worth $471,419,000 after purchasing an additional 248,700 shares in the last quarter. 86.65% of the stock is currently owned by institutional investors.

Trending Headlines about KLA

Here are the key news stories impacting KLA this week:

• Positive Sentiment: KLA reported fiscal Q1 revenue of $4.14 billion, above the approximately $4.04 billion consensus estimate, while non-GAAP EPS of $1.22 exceeded 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 Q2 outlook was stronger than expected, calling for revenue of $4.5 billion to $4.9 billion, or roughly $4.7 billion at the midpoint. The guidance suggests continued demand for KLA’s semiconductor inspection and metrology equipment. KLA forecasts December-quarter revenue and wafer equipment market growth
• Positive Sentiment: KLA also reported strong cash generation, with $1.53 billion in quarterly operating cash flow and $1.34 billion in free cash flow. Capital returns totaled $1.24 billion, supporting the investment case for shareholders. KLA Shares Climb on Q1 Double Beat, Strong Guidance
• Neutral Sentiment: Industry sentiment remains favorable after SK Hynix indicated that the memory shortage could persist into 2030, implying years of additional fabrication-capacity investment and demand for chipmaking equipment. Chip Equipment Stocks Rally on Memory Shortage Outlook
• Negative Sentiment: Analyst reactions were mixed. UBS maintained a Hold rating and cut its target from $190 to $180, citing structural share headwinds, while Cantor Fitzgerald reduced its target from $325 to $225 despite keeping an Overweight rating. These reductions may reflect valuation concerns and uncertainty around AI-related spending. UBS trims KLA price target

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.

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