Citigroup Forecasts Strong Price Appreciation for KLA (NASDAQ:KLAC) Stock

Key Points

• Citigroup has raised its target price on KLA stock from $1,035.00 to $1,060.00, indicating a potential upside of 19.47% from the recent close, while maintaining a "buy" rating.
• Other analysts have also increased their target prices for KLA, with estimates ranging from $900.00 to $1,070.00, showcasing a consensus hold rating among the majority.
• KLA reported strong quarterly earnings with an EPS of $9.38, exceeding expectations, and announced a $5 billion share repurchase program, indicating management's confidence in the company's valuation.

KLA (NASDAQ:KLAC - Get Free Report) had its target price increased by analysts at Citigroup from $1,035.00 to $1,060.00 in a report released on Friday,Benzinga reports. The firm currently has a "buy" rating on the semiconductor company's stock. Citigroup's price objective indicates a potential upside of 19.47% from the company's previous close.

A number of other equities analysts also recently commented on KLAC. Wells Fargo & Company reissued an "equal weight" rating and issued a $920.00 target price (up previously from $870.00) on shares of KLA in a research note on Tuesday, July 8th. TD Cowen raised their target price on KLA from $800.00 to $900.00 and gave the company a "hold" rating in a report on Friday. UBS Group lifted their price objective on shares of KLA from $775.00 to $960.00 and gave the company a "neutral" rating in a research note on Monday, July 21st. JPMorgan Chase & Co. raised their price target on shares of KLA from $900.00 to $1,070.00 and gave the company an "overweight" rating in a report on Friday. Finally, Needham & Company LLC reiterated a "buy" rating and issued a $830.00 price objective on shares of KLA in a report on Thursday, May 1st. Eleven investment analysts have rated the stock with a hold rating and eight have assigned a buy rating to the company's stock. Based on data from MarketBeat.com, the company has an average rating of "Hold" and a consensus target price of $890.59.

KLA Price Performance

KLAC stock traded up $8.23 during midday trading on Friday, hitting $887.26. 1,177,780 shares of the stock were exchanged, compared to its average volume of 1,168,718. KLA has a fifty-two week low of $551.33 and a fifty-two week high of $945.87. The stock has a market cap of $117.33 billion, a price-to-earnings ratio of 32.25, a PEG ratio of 1.72 and a beta of 1.42. The stock's 50-day moving average price is $872.48 and its 200-day moving average price is $767.52. The company has a debt-to-equity ratio of 1.47, a quick ratio of 1.74 and a current ratio of 2.54.

KLA (NASDAQ:KLAC - Get Free Report) last released its earnings results on Thursday, July 31st. The semiconductor company reported $9.38 earnings per share (EPS) for the quarter, topping the consensus estimate of $8.53 by $0.85. The business had revenue of $3.17 billion for the quarter, compared to analysts' expectations of $3.08 billion. KLA had a net margin of 31.99% and a return on equity of 112.97%. The company's quarterly revenue was up 23.6% on a year-over-year basis. During the same period last year, the company earned $6.60 earnings per share. Research analysts predict that KLA will post 31.59 earnings per share for the current year.

KLA announced that its board has approved a share repurchase program on Wednesday, April 30th that authorizes the company to buyback $5.00 billion in outstanding shares. This buyback authorization authorizes the semiconductor company to repurchase up to 5.4% of its stock through open market purchases. Stock buyback programs are often a sign that the company's management believes its shares are undervalued.

Insider Activity

In related news, CFO Bren D. Higgins sold 1,019 shares of the stock in a transaction that occurred on Thursday, May 22nd. The stock was sold at an average price of $766.46, for a total value of $781,022.74. Following the transaction, the chief financial officer owned 27,779 shares in the company, valued at approximately $21,291,492.34. This represents a 3.54% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, CEO Richard P. Wallace sold 10,802 shares of the business's stock in a transaction that occurred on Tuesday, May 6th. The stock was sold at an average price of $683.30, for a total transaction of $7,381,006.60. Following the completion of the sale, the chief executive officer directly owned 78,740 shares of the company's stock, valued at $53,803,042. This represents a 12.06% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders sold 11,860 shares of company stock worth $8,196,798. Corporate insiders own 0.12% of the company's stock.

Institutional Investors Weigh In On KLA

Large investors have recently bought and sold shares of the business. 3Chopt Investment Partners LLC bought a new stake in shares of KLA in the 1st quarter valued at approximately $402,000. GAMMA Investing LLC raised its stake in shares of KLA by 40.1% in the 1st quarter. GAMMA Investing LLC now owns 2,463 shares of the semiconductor company's stock valued at $1,674,000 after purchasing an additional 705 shares during the period. Confluence Wealth Services Inc. acquired a new stake in shares of KLA in the first quarter valued at about $1,479,000. Keyvantage Wealth LLC bought a new stake in KLA in the fourth quarter valued at approximately $214,000. Finally, Mirae Asset Global Investments Co. Ltd. lifted its holdings in KLA by 2.8% during the 1st quarter. Mirae Asset Global Investments Co. Ltd. now owns 138,990 shares of the semiconductor company's stock worth $93,624,000 after purchasing an additional 3,846 shares during the last quarter. 86.65% of the stock is currently owned by institutional investors.

About KLA

KLA Corporation, together with its subsidiaries, engages in the design, manufacture, and marketing of process control, process-enabling, and yield management solutions for the semiconductor and related electronics industries worldwide. It operates through three segments: Semiconductor Process Control; Specialty Semiconductor Process; and PCB and Component Inspection.

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