KLA (NASDAQ:KLAC) Given "Outperform" Rating at Raymond James Financial

Key Points

• Raymond James Financial has restated its “outperform” rating on KLA (NASDAQ: KLAC) and increased the price target from $850.00 to $950.00, suggesting a potential upside of 7.95% from the company's previous close.
• KLA reported a quarterly earnings of $9.38 EPS, exceeding analysts' estimates, with a revenue of $3.17 billion for the quarter, marking a 23.6% increase compared to the same period last year.
• The company has authorized a $5.00 billion stock buyback plan, which indicates that the leadership believes its stock is currently undervalued.

KLA (NASDAQ:KLAC - Get Free Report)'s stock had its "outperform" rating restated by analysts at Raymond James Financial in a report released on Friday,Benzinga reports. They currently have a $950.00 price target on the semiconductor company's stock, up from their prior price target of $850.00. Raymond James Financial's price target would indicate a potential upside of 7.95% from the company's previous close.

KLAC has been the topic of a number of other research reports. Wells Fargo & Company reissued an "equal weight" rating and issued a $920.00 price target (up previously from $870.00) on shares of KLA in a report on Tuesday, July 8th. Needham & Company LLC reissued a "buy" rating and issued a $830.00 price target on shares of KLA in a report on Thursday, May 1st. JPMorgan Chase & Co. decreased their price target on shares of KLA from $950.00 to $900.00 and set an "overweight" rating on the stock in a report on Thursday, May 1st. Oppenheimer increased their price target on shares of KLA from $740.00 to $950.00 and gave the stock an "outperform" rating in a report on Tuesday, June 17th. Finally, Morgan Stanley upped their price objective on shares of KLA from $916.00 to $928.00 and gave the company an "overweight" rating in a research note on Friday. Eleven investment analysts have rated the stock with a hold rating and eight have issued a buy rating to the stock. According to MarketBeat, KLA presently has an average rating of "Hold" and a consensus target price of $870.18.

KLA Stock Performance

KLA stock opened at $880.02 on Friday. The firm's 50 day simple moving average is $872.48 and its 200 day simple moving average is $767.52. The company has a current ratio of 2.54, a quick ratio of 1.74 and a debt-to-equity ratio of 1.47. The firm has a market capitalization of $116.37 billion, a PE ratio of 32.04, a price-to-earnings-growth ratio of 1.72 and a beta of 1.42. KLA has a 1-year low of $551.33 and a 1-year high of $945.87.

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

KLA announced that its Board of Directors has authorized a stock buyback plan on Wednesday, April 30th that permits the company to buyback $5.00 billion in shares. This buyback authorization permits the semiconductor company to buy up to 5.4% of its shares through open market purchases. Shares buyback plans are generally a sign that the company's leadership believes its stock is undervalued.

Insider Buying and Selling at KLA

In other KLA news, CFO Bren D. Higgins sold 1,019 shares of the stock in a transaction on Thursday, May 22nd. The shares were sold at an average price of $766.46, for a total transaction of $781,022.74. Following the completion of the sale, the chief financial officer owned 27,779 shares of the company's stock, valued at $21,291,492.34. This represents a 3.54% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, CEO Richard P. Wallace sold 10,802 shares of the stock in a transaction 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 sale, the chief executive officer directly owned 78,740 shares of the company's stock, valued at $53,803,042. The trade was a 12.06% decrease in their position. The disclosure for this sale can be found here. Insiders sold 11,860 shares of company stock valued at $8,196,798 in the last quarter. Company insiders own 0.12% of the company's stock.

Institutional Investors Weigh In On KLA

Several institutional investors and hedge funds have recently modified their holdings of the stock. MAI Capital Management lifted its position in shares of KLA by 1.0% in the 1st quarter. MAI Capital Management now owns 1,365 shares of the semiconductor company's stock worth $928,000 after purchasing an additional 14 shares during the period. Meiji Yasuda Life Insurance Co lifted its position in shares of KLA by 1.2% in the 1st quarter. Meiji Yasuda Life Insurance Co now owns 1,212 shares of the semiconductor company's stock worth $824,000 after purchasing an additional 14 shares during the period. Anchor Investment Management LLC lifted its position in shares of KLA by 12.0% in the 4th quarter. Anchor Investment Management LLC now owns 140 shares of the semiconductor company's stock worth $88,000 after purchasing an additional 15 shares during the period. IFC Advisors LLC lifted its position in shares of KLA by 4.6% in the 1st quarter. IFC Advisors LLC now owns 342 shares of the semiconductor company's stock worth $232,000 after purchasing an additional 15 shares during the period. Finally, Trust Investment Advisors lifted its position in shares of KLA by 1.3% in the 1st quarter. Trust Investment Advisors now owns 1,188 shares of the semiconductor company's stock worth $808,000 after purchasing an additional 15 shares during the period. 86.65% of the stock is owned by hedge funds and other institutional investors.

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.

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