KLA's (KLAC) Buy Rating Reiterated at Argus

Key Points

• Argus reiterated its Buy rating on KLA with a $225 price target, implying approximately 38.5% upside from the reported share price of $162.44.
• KLA reported quarterly revenue of $4.14 billion and EPS of $1.22, exceeding analyst estimates, while revenue rose 28.9% year over year.
• Analyst sentiment remains broadly positive but mixed: 19 analysts rate KLA a Buy and 10 a Hold, producing a consensus Moderate Buy rating and a $220.35 target price.

KLA (NASDAQ:KLAC - Get Free Report)'s stock had its "buy" rating reissued by research analysts at Argus in a research report issued on Friday, Benzinga reports. They presently have a $225.00 target price on the semiconductor company's stock. Argus's price objective would indicate a potential upside of 38.51% from the stock's current price.

KLAC has been the topic of a number of other research reports. Morgan Stanley reaffirmed an "overweight" rating and set a $220.00 target price on shares of KLA in a research note on Thursday. Susquehanna lowered their price target on KLA from $215.00 to $190.00 and set a "neutral" rating on the stock in a report on Thursday. Wells Fargo & Company cut their target price on shares of KLA from $245.00 to $210.00 and set an "overweight" rating for the company in a research report on Thursday. Stifel Nicolaus set a $230.00 price objective on shares of KLA and gave the stock a "buy" rating in a research note on Thursday. Finally, JPMorgan Chase & Co. upped their price target on KLA from $238.00 to $240.00 and gave the stock an "overweight" rating in a research report on Thursday. Nineteen investment analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the company's stock. According to data from MarketBeat, KLA has a consensus rating of "Moderate Buy" and a consensus target price of $220.35.

KLA Price Performance

Shares of NASDAQ KLAC traded down $4.99 during trading hours on Friday, reaching $162.44. 1,503,806 shares of the stock traded hands, compared to its average volume of 11,109,256. The company has a market capitalization of $211.99 billion, a P/E ratio of 40.90, a price-to-earnings-growth ratio of 1.41 and a beta of 1.45. The company's 50-day simple moving average is $179.18 and its two-hundred day simple moving average is $181.70. KLA has a 52-week low of $107.20 and a 52-week high of $307.37. 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 - Get Free Report) last announced 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. The firm had revenue of $4.14 billion during the quarter, compared to the consensus estimate of $4.04 billion. KLA had a return on equity of 91.73% and a net margin of 36.25%. The business's revenue was up 28.9% on a year-over-year basis. During the same quarter in the previous year, the company posted $8.47 earnings per share. Equities research analysts forecast that KLA will post 5.43 EPS for the current year.

Insider Buying and Selling at KLA

In other news, EVP Brian Lorig sold 59,586 shares of the firm's stock in a transaction that occurred on Thursday, August 13th. The stock was sold at an average price of $208.13, for a total value of $12,401,634.18. Following the completion of the sale, the executive vice president directly owned 77,681 shares of the company's stock, valued at $16,167,746.53. This trade represents a 43.41% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CEO Richard Wallace sold 87,568 shares of the company's stock in a transaction dated Tuesday, August 11th. The shares were sold at an average price of $198.95, for a total transaction of $17,421,653.60. Following the transaction, the chief executive officer owned 778,944 shares in the company, valued at $154,970,908.80. The trade was a 10.11% 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 worth $46,903,454 in the last 90 days. 79.39% of the stock is currently owned by insiders.

Hedge Funds Weigh In On KLA

Several institutional investors and hedge funds have recently added to or reduced their stakes in KLAC. Allied Private Wealth LLC acquired a new stake in shares of KLA in the 2nd quarter worth $27,000. Atomic Invest LLC boosted 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 buying an additional 86 shares in the last quarter. Roble Belko & Company Inc increased 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 purchasing an additional 91 shares in the last quarter. Carolina Wealth Advisors LLC increased its holdings in KLA by 900.0% in the 2nd quarter. Carolina Wealth Advisors LLC now owns 100 shares of the semiconductor company's stock worth $30,000 after acquiring an additional 90 shares in the last quarter. Finally, Cherry Tree Wealth Management LLC grew its position in shares of KLA by 900.0% in the second quarter. Cherry Tree Wealth Management LLC now owns 120 shares of the semiconductor company's stock valued at $36,000 after purchasing an additional 108 shares during the period. Hedge funds and other institutional investors own 86.65% of the company's stock.

Trending Headlines about KLA

Here are the key news stories impacting KLA this week:

• Positive Sentiment: Quarterly results exceeded expectations. KLA reported fiscal 2027 first-quarter revenue of $4.14 billion, above the $4.04 billion consensus estimate. Non-GAAP EPS was $1.22 versus expectations of $1.18, while revenue increased 28.9% year over year. The company also generated $1.34 billion in free cash flow and returned $1.24 billion to shareholders. KLA Corporation Reports Fiscal 2027 First Quarter Results
• Positive Sentiment: Next-quarter guidance topped consensus. KLA forecast fiscal second-quarter revenue of $4.5 billion to $4.9 billion, implying a midpoint of $4.7 billion versus the $4.5 billion analyst consensus. Adjusted EPS guidance of $1.33 to $1.55 also brackets a consensus estimate of $1.36. KLA Expects Second-Quarter Revenue Range
• Positive Sentiment: AI-related demand remains the primary catalyst. Analysts cited rising wafer-inspection demand, margin expansion and the need for leading-edge fabs supporting AI chips. KLA expects the wafer-fabrication equipment market to exceed $200 billion in 2027, supporting a favorable multiyear outlook. KLA Forecasts Wafer Equipment Market Growth
• Neutral Sentiment: Analyst sentiment is mixed. JPMorgan raised its target to $240 and maintained an overweight rating, while Citigroup maintained a buy rating despite trimming its target to $275. These targets still imply substantial upside, but the differing revisions suggest expectations remain unsettled.
• Negative Sentiment: Several firms lowered price targets. Wells Fargo, Needham, Evercore ISI, Susquehanna, Cantor Fitzgerald and UBS reduced their targets following the results. UBS retained a hold rating, citing structural share-related headwinds, while Susquehanna also moved to neutral. These cuts may limit enthusiasm despite the strong operating 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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