KLA Corporation $KLAC Holdings Lessened by Sumitomo Mitsui Trust Group Inc.

Key Points

• Sumitomo Mitsui Trust Group reduced its KLA stake by 2.8% in the third quarter, selling 88,526 shares and retaining 3.08 million shares valued at approximately $599.5 million. Institutional investors collectively own 86.65% of KLA.
• KLA exceeded quarterly expectations with revenue of $4.14 billion and EPS of $1.22, up 28.9% year over year. The company also issued stronger fiscal second-quarter guidance, forecasting revenue of $4.5 billion to $4.9 billion and EPS of $1.33 to $1.55.
• Analyst sentiment remains positive but mixed, with a consensus “Moderate Buy” rating and a $220.35 price target. However, KLA shares have come under pressure, trading below their 50-day and 200-day moving averages amid broader semiconductor weakness and concerns about the sustainability of AI infrastructure spending.

Sumitomo Mitsui Trust Group Inc. lowered its holdings in KLA Corporation (NASDAQ:KLAC - Free Report) by 2.8% in the 3rd quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 3,075,468 shares of the semiconductor company's stock after selling 88,526 shares during the quarter. Sumitomo Mitsui Trust Group Inc. owned about 0.24% of KLA worth $599,501,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also bought and sold shares of KLAC. Mirae Asset Global Investments Co. Ltd. bought a new stake in shares of KLA during the third quarter worth about $377,898,000. ProShare Advisors LLC boosted its stake in KLA by 4.8% during the 3rd quarter. ProShare Advisors LLC now owns 1,681,622 shares of the semiconductor company's stock valued at $327,799,000 after purchasing an additional 77,196 shares during the last quarter. Vise Technologies Inc. increased its holdings in KLA by 11.7% during the 3rd quarter. Vise Technologies Inc. now owns 71,185 shares of the semiconductor company's stock worth $13,876,000 after purchasing an additional 7,440 shares in the last quarter. Invera Wealth Advisors LLC increased its holdings in KLA by 7.0% during the 3rd quarter. Invera Wealth Advisors LLC now owns 2,071 shares of the semiconductor company's stock worth $404,000 after purchasing an additional 136 shares in the last quarter. Finally, Americana Partners LLC raised its stake in shares of KLA by 8.6% in the third quarter. Americana Partners LLC now owns 21,042 shares of the semiconductor company's stock worth $4,102,000 after purchasing an additional 1,664 shares during the last quarter. Institutional investors own 86.65% of the company's stock.

Analyst Upgrades and Downgrades

A number of research firms have recently weighed in on KLAC. Weiss Ratings upgraded KLA from a "hold (c+)" rating to a "buy (b-)" rating in a report on Friday, October 16th. UBS Group reaffirmed a "neutral" rating and set a $180.00 price objective (down from $190.00) on shares of KLA in a report on Thursday. Argus reaffirmed a "buy" rating and issued a $225.00 target price on shares of KLA in a report on Friday. The Goldman Sachs Group restated a "neutral" rating and set a $230.00 price objective on shares of KLA in a report on Tuesday, July 28th. Finally, Jefferies Financial Group restated a "buy" rating and issued a $210.00 target price (up from $200.00) on shares of KLA in a research note on Wednesday, July 29th. Nineteen investment analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the stock. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price of $220.35.

KLA Trading Down 5.7%

KLA stock opened at $157.91 on Friday. The stock has a market cap of $206.07 billion, a P/E ratio of 39.48, a PEG ratio of 1.37 and a beta of 1.45. KLA Corporation has a fifty-two week low of $107.20 and a fifty-two week high of $307.37. The firm's fifty day moving average price is $178.62 and its 200-day moving average price is $181.78. The company has a debt-to-equity ratio of 0.88, a quick ratio of 2.03 and a current ratio of 2.76.

KLA (NASDAQ:KLAC - Get Free Report) last issued its quarterly earnings data on Wednesday, October 28th. The semiconductor company reported $1.22 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.18 by $0.04. KLA had a return on equity of 89.30% and a net margin of 36.25%. The company had revenue of $4.14 billion for the quarter, compared to the consensus estimate of $4.04 billion. During the same quarter last year, the business posted $8.47 earnings per share. The firm's revenue was up 28.9% compared to the same quarter last year. Equities research analysts forecast that KLA Corporation will post 5.67 earnings per share for the current fiscal 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 an increase from KLA's previous quarterly dividend of $0.23. The ex-dividend date was Monday, August 17th. This represents a $0.92 annualized dividend and a dividend yield of 0.6%. KLA's dividend payout ratio is 23.00%.

Insider Activity at KLA

In other news, CAO Virendra A. Kirloskar sold 4,504 shares of KLA stock in a transaction on Wednesday, August 5th. The shares were sold at an average price of $195.50, for a total transaction of $880,532.00. Following the completion of the sale, the chief accounting officer directly owned 7,972 shares of the company's stock, valued at approximately $1,558,526. The trade was a 36.10% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, EVP MaryBeth Wilkinson sold 13,802 shares of KLA stock in a transaction dated Wednesday, August 5th. The stock was sold at an average price of $195.50, for a total value of $2,698,291.00. Following the sale, the executive vice president directly owned 22,110 shares of the company's stock, valued at approximately $4,322,505. This trade represents a 38.43% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 243,339 shares of company stock worth $46,903,454. Corporate insiders own 79.39% of the company's stock.

KLA News Roundup

Here are the key news stories impacting KLA this week:

• Positive Sentiment: KLA reported fiscal Q1 2027 revenue of approximately $4.14 billion and earnings of $1.22 per share, exceeding Wall Street expectations of $4.04 billion and $1.18 per share. Revenue increased 28.9% year over year, marking the company’s 10th consecutive quarter of growth. KLAC Q1 Earnings Beat Estimates
• Positive Sentiment: The company issued fiscal Q2 revenue guidance of $4.5 billion to $4.9 billion, implying roughly $4.7 billion at the midpoint versus consensus of $4.5 billion. EPS guidance of $1.33 to $1.55 also brackets or exceeds the $1.36 consensus estimate, reinforcing expectations for continued AI-driven demand. KLA Q2 Guidance
• Positive Sentiment: Demand for wafer inspection, process-control and advanced-packaging equipment is benefiting from the increasing complexity of AI chips and the construction of leading-edge semiconductor fabs. Argus reaffirmed its Buy rating with a $225 price target, while JPMorgan raised its target to $240 and maintained Overweight. Advanced Packaging Demand
• Neutral Sentiment: Analyst opinion remains mixed. Several firms lowered price targets after earnings—including Wells Fargo, Needham, Evercore ISI, Cantor Fitzgerald, Susquehanna and UBS—citing valuation, structural share headwinds or a more cautious risk-reward profile, even though many retained positive or neutral ratings.
• Negative Sentiment: KLAC is declining in sympathy with semiconductor shares as investors question whether elevated AI infrastructure spending can continue at its current pace. The pullback also leaves the stock below its 50-day and 200-day moving averages, increasing near-term technical pressure despite the strong operating outlook. KLA Shares Weaken as Semiconductor Stocks Fall

KLA Company Profile

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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