KLA (NASDAQ:KLAC) Stock Price Target Lowered at Susquehanna

Key Points

• Susquehanna lowered KLA’s price target from $215 to $190 and maintained a neutral rating, though the new target implied 19.67% upside from the prior close.
• Analyst sentiment remains broadly positive, with 19 Buy ratings and 10 Holds producing a consensus “Moderate Buy” rating and an average price target of $213.85.
• KLA exceeded quarterly expectations, reporting $4.14 billion in revenue and $1.22 earnings per share, while revenue increased 28.9% year over year; however, the stock traded below its 50-day and 200-day moving averages amid valuation concerns.

KLA (NASDAQ:KLAC - Get Free Report) had its target price cut by equities research analysts at Susquehanna from $215.00 to $190.00 in a research report issued to clients and investors on Thursday, Benzinga reports. The brokerage currently has a "neutral" rating on the semiconductor company's stock. Susquehanna's price objective would suggest a potential upside of 19.67% from the stock's previous close.

Other research analysts have also issued research reports about the stock. Wells Fargo & Company set a $245.00 price target on shares of KLA and gave the company an "overweight" rating in a report on Wednesday, July 29th. Zacks Research downgraded shares of KLA from a "strong-buy" rating to a "hold" rating in a research note on Monday, September 28th. Cantor Fitzgerald dropped their price objective on shares of KLA from $325.00 to $225.00 and set an "overweight" rating for the company in a research report on Thursday. TD Cowen reissued a "buy" rating and issued a $260.00 target price (up from $200.00) on shares of KLA in a research note on Thursday, July 9th. Finally, Evercore reissued an "outperform" rating and issued a $185.00 target price on shares of KLA in a research note on Thursday. Nineteen investment analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $213.85.

KLA Stock Performance

KLA stock opened at $158.77 on Thursday. The stock's 50-day moving average is $179.57 and its 200-day moving average is $181.57. The company has a market cap of $207.20 billion, a price-to-earnings ratio of 43.30, a price-to-earnings-growth ratio of 1.29 and a beta of 1.45. The company has a debt-to-equity ratio of 0.93, a current ratio of 2.88 and a quick ratio of 2.03. KLA has a 12 month low of $107.20 and a 12 month high of $307.37.

KLA (NASDAQ:KLAC - Get Free Report) last released its quarterly earnings data on Wednesday, October 28th. The semiconductor company reported $1.22 earnings per share for the quarter, beating the consensus estimate of $1.18 by $0.04. KLA had a return on equity of 87.66% and a net margin of 35.57%. The business had revenue of $4.14 billion for the quarter, compared to analyst estimates of $4.04 billion. During the same period in the previous year, the company posted $8.47 EPS. The company's revenue was up 28.9% compared to the same quarter last year. Equities analysts anticipate that KLA will post 5.43 earnings per share for the current year.

Insider Buying and Selling

In other KLA news, CAO Virendra Kirloskar sold 4,504 shares of the stock in a transaction that occurred 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 sale, the chief accounting officer owned 7,972 shares of the company's stock, valued at $1,558,526. This trade represents a 36.10% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP MaryBeth Wilkinson sold 13,802 shares of the stock in a transaction that occurred on Wednesday, August 5th. The shares were sold at an average price of $195.50, for a total transaction 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 $4,322,505. This trade represents a 38.43% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 243,339 shares of company stock valued at $46,903,454. Insiders own 79.39% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in KLAC. Allied Private Wealth LLC acquired a new position in shares of KLA during the second quarter valued at approximately $27,000. Atomic Invest LLC raised its holdings in KLA by 781.8% during the second quarter. Atomic Invest LLC now owns 97 shares of the semiconductor company's stock worth $27,000 after purchasing an additional 86 shares in the last quarter. Roble Belko & Company Inc raised its holdings in KLA by 2,275.0% during the second quarter. Roble Belko & Company Inc now owns 95 shares of the semiconductor company's stock worth $29,000 after purchasing an additional 91 shares in the last quarter. Carolina Wealth Advisors LLC lifted its position 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 purchasing an additional 90 shares during the period. Finally, Cherry Tree Wealth Management LLC lifted its position 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 purchasing an additional 108 shares during the period. 86.65% of the stock is owned by institutional investors and hedge funds.

Key Headlines Impacting KLA

Here are the key news stories impacting KLA this week:

• Positive Sentiment: KLA reported fiscal Q1 revenue of $4.14 billion, above the $4.04 billion analyst consensus and up 28.9% year over year. Non-GAAP earnings of $1.22 per share also exceeded the $1.18 consensus estimate. KLA Corporation Reports Fiscal 2027 First Quarter Results
• Positive Sentiment: Management forecast fiscal Q2 revenue of $4.5 billion to $4.9 billion, implying a $4.7 billion midpoint that is above market expectations. The guidance suggests continued momentum in process-control and inspection equipment demand. KLA Expects Q2 Revenue Range
• Positive Sentiment: KLA expects the wafer-fabrication equipment market to exceed $200 billion in 2027. That forecast, combined with SK Hynix’s expectation of a prolonged memory shortage, points to potentially stronger and longer-lasting fab investment across the semiconductor industry. KLA Forecasts December-Quarter Revenue
• Neutral Sentiment: Strong cash generation remains supportive: KLA produced $1.53 billion in quarterly operating cash flow and returned $1.24 billion to shareholders, although elevated capital returns may limit the immediate impact of this factor on valuation. KLA Fiscal 2027 Results
• Negative Sentiment: At roughly 43 times earnings and below its 50-day and 200-day moving averages, KLAC remains vulnerable to concerns about valuation, AI-spending sustainability and broader market rotation. These risks could temper the rally despite the strong earnings 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.

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