KLA Corporation (NASDAQ:KLAC) Receives Average Rating of "Moderate Buy" from Brokerages

Key Points

• Analyst sentiment is moderately bullish: Twenty-nine brokerages give KLA a consensus “Moderate Buy” rating, with 19 buys, nine holds and one strong buy. The average 12-month price target is $222.22.
• KLA exceeded quarterly expectations: The semiconductor-equipment company reported adjusted EPS of $1.05 versus the $1.00 consensus estimate, while revenue rose 15.2% year over year to $3.66 billion.
• Insiders have been selling shares: Company insiders sold 213,413 shares worth approximately $45.99 million over the past 90 days, while institutional investors and hedge funds own 86.65% of KLA’s stock.

Shares of KLA Corporation (NASDAQ:KLAC - Get Free Report) have been assigned a consensus rating of "Moderate Buy" from the twenty-nine research firms that are presently covering the stock, Marketbeat Ratings reports. Nine analysts have rated the stock with a hold recommendation, nineteen have given a buy recommendation and one has assigned a strong buy recommendation to the company. The average 12-month price target among brokers that have covered the stock in the last year is $222.2185.

A number of brokerages have weighed in on KLAC. Sanford C. Bernstein reiterated an "outperform" rating and issued a $225.00 target price on shares of KLA in a report on Wednesday, July 29th. Morgan Stanley reaffirmed an "overweight" rating and set a $253.00 price objective on shares of KLA in a research report on Wednesday, July 29th. TD Cowen reiterated a "buy" rating and issued a $260.00 price objective (up from $200.00) on shares of KLA in a research note on Thursday, July 9th. Citigroup reiterated a "buy" rating on shares of KLA in a research report on Wednesday, June 17th. Finally, Royal Bank Of Canada reissued a "sector perform" rating and set a $180.00 target price (up from $170.00) on shares of KLA in a research note on Wednesday, July 29th.

Insider Buying and Selling

In related news, CEO Richard Wallace sold 87,568 shares of the business's stock in a transaction dated 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 sale, the chief executive officer directly owned 778,944 shares of the company's stock, valued at $154,970,908.80. The trade was a 10.11% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, CAO Virendra A. Kirloskar sold 4,504 shares of the company's 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 $880,532.00. Following the transaction, the chief accounting officer directly owned 7,972 shares in the company, valued at approximately $1,558,526. This trade represents a 36.10% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 213,413 shares of company stock worth $45,990,744 over the last 90 days. 91.48% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of KLAC. Basepoint Wealth LLC purchased a new position in shares of KLA in the 4th quarter worth approximately $32,000. Hilton Head Capital Partners LLC purchased a new stake in shares of KLA during the fourth quarter valued at approximately $41,000. Nemes Rush Group LLC increased its position in shares of KLA by 17.1% during the fourth quarter. Nemes Rush Group LLC now owns 48 shares of the semiconductor company's stock valued at $58,000 after acquiring an additional 7 shares during the last quarter. Cornerstone Planning Group LLC lifted its holdings in KLA by 36.4% during the first quarter. Cornerstone Planning Group LLC now owns 60 shares of the semiconductor company's stock worth $88,000 after acquiring an additional 16 shares during the period. Finally, Principia Wealth Advisory LLC lifted its holdings in KLA by 2,000.0% during the fourth quarter. Principia Wealth Advisory LLC now owns 84 shares of the semiconductor company's stock worth $102,000 after acquiring an additional 80 shares during the period. Institutional investors and hedge funds own 86.65% of the company's stock.

KLA Stock Performance

Shares of KLAC opened at $169.09 on Tuesday. The company has a current ratio of 2.88, a quick ratio of 2.03 and a debt-to-equity ratio of 0.93. The firm's fifty day simple moving average is $196.17 and its two-hundred day simple moving average is $190.29. KLA has a 12 month low of $96.70 and a 12 month high of $307.37. The stock has a market capitalization of $220.92 billion, a P/E ratio of 46.11, a price-to-earnings-growth ratio of 1.61 and a beta of 1.45.

KLA (NASDAQ:KLAC - Get Free Report) last posted its quarterly earnings data on Tuesday, July 28th. The semiconductor company reported $1.05 earnings per share for the quarter, topping the consensus estimate of $1.00 by $0.05. KLA had a return on equity of 87.66% and a net margin of 35.57%.The firm had revenue of $3.66 billion during the quarter, compared to analyst estimates of $3.61 billion. During the same period last year, the company posted $0.94 EPS. The business's quarterly revenue was up 15.2% on a year-over-year basis. KLA has set its Q1 2027 guidance at 1.060-1.260 EPS. As a group, analysts predict that KLA will post 5.42 EPS for the current year.

KLA Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, September 1st. Stockholders of record on Monday, August 17th were given a dividend of $0.23 per share. This is a boost from KLA's previous quarterly dividend of $0.23. The ex-dividend date of this dividend was Monday, August 17th. This represents a $0.92 dividend on an annualized basis and a dividend yield of 0.5%. KLA's payout ratio is currently 25.07%.

KLA Company Profile

KLA Corporation NASDAQ: KLAC develops process-control and yield-management technologies used by semiconductor and other advanced-electronics manufacturers. Its systems help customers detect, measure and analyze defects and variations during the production of integrated circuits, enabling manufacturers to improve process performance, product quality and manufacturing yields.

The company's portfolio includes wafer and reticle inspection systems, metrology and measurement tools, defect-review and analysis equipment, and software that supports process control and data management.

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