KLA Corporation (NASDAQ:KLAC) Given Average Recommendation of "Moderate Buy" by Brokerages

KLA Corporation (NASDAQ:KLAC - Get Free Report) has received a consensus rating of "Moderate Buy" from the nineteen brokerages that are covering the company, Marketbeat Ratings reports. Nine research analysts have rated the stock with a hold recommendation and ten have issued a buy recommendation on the company. The average 1-year price target among brokerages that have issued ratings on the stock in the last year is $807.06.

Several analysts recently commented on KLAC shares. Deutsche Bank Aktiengesellschaft lowered shares of KLA from a "buy" rating to a "hold" rating and set a $790.00 price target on the stock. in a research report on Tuesday, May 20th. Cantor Fitzgerald reissued a "neutral" rating and set a $800.00 target price on shares of KLA in a research note on Thursday, May 1st. Barclays dropped their target price on KLA from $760.00 to $590.00 and set an "equal weight" rating on the stock in a research report on Tuesday, April 22nd. Stifel Nicolaus upped their price target on KLA from $750.00 to $770.00 and gave the stock a "buy" rating in a report on Thursday, May 1st. Finally, Jefferies Financial Group reiterated a "hold" rating and set a $725.00 price target (down previously from $875.00) on shares of KLA in a research report on Friday, March 28th.

KLA Stock Down 2.4%

NASDAQ:KLAC opened at $850.00 on Friday. The company's fifty day moving average price is $755.43 and its 200-day moving average price is $716.33. The firm has a market capitalization of $112.40 billion, a P/E ratio of 30.90, a PEG ratio of 1.62 and a beta of 1.40. The company has a debt-to-equity ratio of 1.47, a current ratio of 2.54 and a quick ratio of 1.74. KLA has a 1-year low of $551.33 and a 1-year high of $914.83.

KLA (NASDAQ:KLAC - Get Free Report) last announced its quarterly earnings results on Wednesday, April 30th. The semiconductor company reported $8.41 earnings per share for the quarter, beating the consensus estimate of $8.08 by $0.33. KLA had a return on equity of 112.97% and a net margin of 31.99%. The company had revenue of $3.06 billion during the quarter, compared to analysts' expectations of $3.01 billion. During the same period last year, the business earned $5.26 earnings per share. KLA's quarterly revenue was up 35.5% on a year-over-year basis. As a group, equities research analysts anticipate that KLA will post 31.59 EPS for the current year.

KLA Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, June 3rd. Stockholders of record on Monday, May 19th were given a dividend of $1.90 per share. This is a boost from KLA's previous quarterly dividend of $1.70. The ex-dividend date was Monday, May 19th. This represents a $7.60 annualized dividend and a dividend yield of 0.89%. KLA's payout ratio is presently 27.63%.

KLA announced that its board has authorized a stock repurchase plan on Wednesday, April 30th that permits the company to repurchase $5.00 billion in shares. This repurchase authorization permits the semiconductor company to reacquire up to 5.4% of its shares through open market purchases. Shares repurchase plans are generally an indication that the company's board of directors believes its stock is undervalued.

Insider Activity

In other news, CFO Bren D. Higgins sold 7,008 shares of the business's stock in a transaction that occurred on Tuesday, March 25th. The shares were sold at an average price of $724.62, for a total value of $5,078,136.96. Following the sale, the chief financial officer now directly owns 28,798 shares of the company's stock, valued at approximately $20,867,606.76. The trade was a 19.57% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Richard P. Wallace sold 10,802 shares of the company'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 transaction, the chief executive officer now owns 78,740 shares in the company, valued at approximately $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 90 days, insiders have sold 18,829 shares of company stock valued at $13,240,166. 0.12% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On KLA

Hedge funds have recently bought and sold shares of the company. Activest Wealth Management increased its stake in KLA by 4,100.0% during the first quarter. Activest Wealth Management now owns 42 shares of the semiconductor company's stock worth $29,000 after purchasing an additional 41 shares during the period. Tortoise Investment Management LLC grew its holdings in shares of KLA by 300.0% in the fourth quarter. Tortoise Investment Management LLC now owns 48 shares of the semiconductor company's stock valued at $30,000 after purchasing an additional 36 shares in the last quarter. TCTC Holdings LLC acquired a new position in shares of KLA in the fourth quarter valued at approximately $31,000. Kohmann Bosshard Financial Services LLC purchased a new stake in KLA during the 4th quarter worth approximately $32,000. Finally, Alpine Bank Wealth Management purchased a new stake in KLA during the 1st quarter worth approximately $35,000. Institutional investors and hedge funds own 86.65% of the company's stock.

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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