Wall Street Zen Downgrades KLA (NASDAQ:KLAC) to Hold

Wall Street Zen lowered shares of KLA (NASDAQ:KLAC - Free Report) from a buy rating to a hold rating in a report published on Friday morning.

Several other analysts have also issued reports on KLAC. Needham & Company LLC restated a "buy" rating and set a $830.00 price target on shares of KLA in a research report on Thursday, May 1st. Deutsche Bank Aktiengesellschaft downgraded KLA from a "buy" rating to a "hold" rating and set a $790.00 price objective on the stock. in a report on Tuesday, May 20th. The Goldman Sachs Group increased their target price on KLA from $759.00 to $864.00 and gave the company a "buy" rating in a report on Friday, January 31st. JPMorgan Chase & Co. reduced their price target on KLA from $950.00 to $900.00 and set an "overweight" rating on the stock in a research report on Thursday, May 1st. Finally, Jefferies Financial Group reaffirmed a "hold" rating and issued a $725.00 price target (down from $875.00) on shares of KLA in a research note on Friday, March 28th. Ten analysts have rated the stock with a hold rating and eleven have issued a buy rating to the stock. According to data from MarketBeat.com, KLA presently has a consensus rating of "Moderate Buy" and a consensus price target of $799.58.

KLA Price Performance

Shares of KLA stock traded down $24.70 on Friday, hitting $749.27. 1,717,677 shares of the company traded hands, compared to its average volume of 1,090,605. KLA has a 12-month low of $551.33 and a 12-month high of $896.32. The company has a current ratio of 2.36, a quick ratio of 1.63 and a debt-to-equity ratio of 1.64. The company has a market cap of $99.08 billion, a P/E ratio of 31.51, a P/E/G ratio of 1.57 and a beta of 1.40. The firm's 50-day simple moving average is $700.70 and its 200 day simple moving average is $695.29.

KLA (NASDAQ:KLAC - Get Free Report) last issued its quarterly earnings results on Wednesday, April 30th. The semiconductor company reported $8.41 earnings per share (EPS) for the quarter, topping the consensus estimate of $8.08 by $0.33. KLA had a return on equity of 108.60% and a net margin of 29.58%. The firm had revenue of $3.06 billion during the quarter, compared to analyst estimates of $3.01 billion. During the same quarter in the previous year, the company posted $5.26 earnings per share. The company's revenue was up 35.5% compared to the same quarter last year. Analysts expect that KLA will post 31.59 earnings per share for the current fiscal year.

KLA Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 3rd. Investors of record on Monday, May 19th will be paid a $1.90 dividend. This is an increase from KLA's previous quarterly dividend of $1.70. This represents a $7.60 annualized dividend and a yield of 1.01%. The ex-dividend date of this dividend is Monday, May 19th. KLA's dividend payout ratio is currently 27.63%.

KLA announced that its Board of Directors has approved a share buyback plan on Wednesday, April 30th that allows the company to repurchase $5.00 billion in shares. This repurchase authorization allows the semiconductor company to repurchase up to 5.4% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company's leadership believes its shares are undervalued.

Insider Buying and Selling at KLA

In related news, CFO Bren D. Higgins sold 1,019 shares of the firm's stock in a transaction dated Thursday, May 22nd. The stock was sold at an average price of $766.46, for a total transaction of $781,022.74. Following the completion of the transaction, the chief financial officer now directly owns 27,779 shares in the company, valued at $21,291,492.34. This trade represents a 3.54% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, CEO Richard P. Wallace sold 10,802 shares of the firm's stock in a transaction that occurred on Tuesday, May 6th. The shares were 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 directly owns 78,740 shares of the company's stock, valued at approximately $53,803,042. The trade was a 12.06% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders sold 18,829 shares of company stock worth $13,240,166. Insiders own 0.12% of the company's stock.

Hedge Funds Weigh In On KLA

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Keyvantage Wealth LLC purchased a new position in KLA in the fourth quarter valued at approximately $214,000. DAVENPORT & Co LLC boosted its holdings in shares of KLA by 7.0% in the 4th quarter. DAVENPORT & Co LLC now owns 5,620 shares of the semiconductor company's stock valued at $3,541,000 after buying an additional 368 shares in the last quarter. Tokio Marine Asset Management Co. Ltd. grew its position in shares of KLA by 232.5% in the 4th quarter. Tokio Marine Asset Management Co. Ltd. now owns 12,839 shares of the semiconductor company's stock valued at $8,090,000 after buying an additional 8,978 shares during the last quarter. CENTRAL TRUST Co raised its stake in KLA by 11.0% during the 4th quarter. CENTRAL TRUST Co now owns 10,252 shares of the semiconductor company's stock worth $6,460,000 after acquiring an additional 1,020 shares in the last quarter. Finally, Bristlecone Advisors LLC lifted its position in KLA by 7.0% in the fourth quarter. Bristlecone Advisors LLC now owns 2,583 shares of the semiconductor company's stock valued at $1,628,000 after acquiring an additional 169 shares during the last quarter. Hedge funds and other institutional investors own 86.65% of the company's stock.

KLA Company Profile

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.