KLA (NASDAQ:KLAC) Upgraded at Wall Street Zen

Key Points

• Wall Street Zen upgraded KLA from “hold” to “buy.” Across analysts, the stock has a “Moderate Buy” consensus rating and an average price target of $220.35.
• KLA beat quarterly expectations, reporting earnings of $1.22 per share versus $1.18 forecast and revenue of $4.14 billion versus $4.04 billion expected; revenue increased 28.9% year over year.
• Company insiders sold 219,173 shares worth about $42.2 million over the past 90 days.

KLA (NASDAQ:KLAC - Get Free Report) was upgraded by investment analysts at Wall Street Zen from a "hold" rating to a "buy" rating in a research note issued to investors on Saturday, Wall Street Zen reports.

A number of other research firms also recently issued reports on KLAC. Barclays reiterated an "overweight" rating and set a $225.00 price objective on shares of KLA in a report on Monday, July 20th. Cantor Fitzgerald set a $240.00 price objective on shares of KLA and gave the company an "overweight" rating in a research note on Thursday, October 29th. Royal Bank Of Canada reiterated a "sector perform" rating and issued a $180.00 price objective (up from $170.00) on shares of KLA in a report on Wednesday, July 29th. Jefferies Financial Group reiterated a "buy" rating and issued a $210.00 price objective (up from $200.00) on shares of KLA in a research note on Wednesday, July 29th. Finally, JPMorgan Chase & Co. raised their target price on shares of KLA from $238.00 to $240.00 and gave the stock an "overweight" rating in a report on Thursday, October 29th. One equities research analyst has rated the stock with a Strong Buy rating, nineteen have assigned a Buy rating and nine have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $220.35.

KLA Trading Up 6.7%

Shares of KLAC stock opened at $138.49 on Friday. KLA has a twelve month low of $107.20 and a twelve month high of $307.37. The firm has a 50-day moving average price of $174.83 and a 200 day moving average price of $181.68. The company has a current ratio of 2.76, a quick ratio of 1.86 and a debt-to-equity ratio of 0.88. The company has a market capitalization of $180.45 billion, a price-to-earnings ratio of 37.39, a PEG ratio of 1.25 and a beta of 1.49.

KLA (NASDAQ:KLAC - Get Free Report) last announced its quarterly earnings results on Wednesday, October 28th. The semiconductor company reported $1.22 earnings per share for the quarter, topping analysts' consensus estimates of $1.18 by $0.04. The business had revenue of $4.14 billion for the quarter, compared to analysts' expectations of $4.04 billion. KLA had a return on equity of 89.30% and a net margin of 36.25%. The business's quarterly revenue was up 28.9% on a year-over-year basis. During the same period in the prior year, the firm earned $8.47 EPS. Research analysts forecast that KLA will post 5.73 earnings per share for the current fiscal year.

Insider Buying and Selling at KLA

In other news, CEO Richard P. Wallace sold 87,568 shares of the stock in a transaction that occurred on Tuesday, August 11th. The stock was sold at an average price of $198.95, for a total value of $17,421,653.60. Following the completion of the transaction, the chief executive officer owned 778,944 shares of the company's stock, valued at approximately $154,970,908.80. This represents a 10.11% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Brian Lorig sold 59,586 shares of KLA stock in a transaction that occurred on Thursday, August 13th. The shares were sold at an average price of $208.13, for a total transaction of $12,401,634.18. Following the sale, the executive vice president directly owned 77,681 shares of the company's stock, valued at $16,167,746.53. This represents a 43.41% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 219,173 shares of company stock valued at $42,201,914 over the last ninety days. Insiders own 79.39% of the company's stock.

Hedge Funds Weigh In On KLA

Several institutional investors have recently bought and sold shares of the company. Wellington Management Group LLP lifted its stake in shares of KLA by 928.9% in the 2nd quarter. Wellington Management Group LLP now owns 14,821,622 shares of the semiconductor company's stock valued at $4,471,832,000 after purchasing an additional 13,381,153 shares during the last quarter. Bank of New York Mellon Corp acquired a new position in KLA during the second quarter worth approximately $2,522,430,000. National Pension Service grew its holdings 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. Assenagon Asset Management S.A. increased its position in 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 valued at $1,094,530,000 after acquiring an additional 3,959,927 shares during the period. Finally, Pictet Asset Management Holding SA boosted its position in shares of KLA by 5.3% during the 3rd quarter. Pictet Asset Management Holding SA now owns 5,113,870 shares of the semiconductor company's stock worth $997,000,000 after purchasing an additional 256,716 shares in the last quarter. 86.65% of the stock is owned by institutional investors and hedge funds.

Trending Headlines about KLA

Here are the key news stories impacting KLA this week:

• Positive Sentiment: KLA declared a quarterly cash dividend of $0.23 per share, payable December 1 to shareholders of record November 16. The dividend provides a modest return to shareholders. KLA Declares Regular Cash Dividend
• Positive Sentiment: A bullish analysis highlights KLA’s strong quarterly results, AI-related demand, expanding margins, and upbeat guidance, including projected year-over-year revenue growth of 43% and EPS growth above 60% in the next quarter. KLA: Unfairly Caught Up In The Tech Carnage
• Positive Sentiment: Exchange-traded funds bought $52.3 million of KLAC shares on November 3, indicating institutional fund demand. ETFs Bought $52.3 Million of KLAC
• Neutral Sentiment: A report on a $17 billion hedge fund returning cash after a poor month discusses ownership and positioning in AI-chip stocks, including KLA. It may contribute to volatility, but does not by itself establish a change in KLA’s business outlook. Hedge Fund Returns Cash After Worst Month Since 2020
• Negative Sentiment: Unusually high put-option buying suggests some investors are hedging against, or betting on, downside in KLAC, a potentially bearish near-term signal. KLA Stock Sees Unusually High Put Option Buying

About KLA

KLA Corporation develops process-control and yield-management technologies used in the manufacture of semiconductors and other electronic products. Its systems help manufacturers detect defects, measure features and monitor production processes as they make increasingly complex devices.

The company's products include inspection and metrology equipment, as well as software and related services. Its technologies support multiple stages of semiconductor production, from work on wafers and reticles to advanced packaging.

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