KLA (NASDAQ:KLAC) Hits New 1-Year High - Still a Buy?

Key Points

• KLA Corporation's stock reached a new 52-week high of $1,092.56, with a recent trading price of $1,064.29, indicating strong market performance.
• Analysts have mixed opinions on KLA, with seven rating it as a "Buy" and eleven as a "Hold", while the average price target sits at $900.29.
• The company reported impressive quarterly earnings, with $9.38 per share beating estimates, and a revenue increase of 23.6% year-over-year to $3.17 billion.

Shares of KLA Corporation (NASDAQ:KLAC - Get Free Report) hit a new 52-week high during trading on Tuesday . The company traded as high as $1,092.56 and last traded at $1,064.29, with a volume of 2571 shares. The stock had previously closed at $1,071.25.

Wall Street Analyst Weigh In

A number of equities analysts have commented on the stock. UBS Group boosted their price objective on shares of KLA from $775.00 to $960.00 and gave the stock a "neutral" rating in a report on Monday, July 21st. Wells Fargo & Company reiterated an "equal weight" rating and issued a $920.00 price objective (up previously from $870.00) on shares of KLA in a report on Tuesday, July 8th. TD Cowen boosted their price objective on shares of KLA from $800.00 to $900.00 and gave the stock a "hold" rating in a report on Friday, August 1st. Wall Street Zen lowered shares of KLA from a "buy" rating to a "hold" rating in a report on Saturday, July 5th. Finally, The Goldman Sachs Group assumed coverage on shares of KLA in a report on Thursday, July 10th. They issued a "neutral" rating and a $980.00 price objective on the stock. Seven analysts have rated the stock with a Buy rating and eleven have given a Hold rating to the company. According to MarketBeat, the company has an average rating of "Hold" and a consensus price target of $900.29.

KLA Price Performance

The firm has a market capitalization of $141.28 billion, a P/E ratio of 35.23, a price-to-earnings-growth ratio of 3.56 and a beta of 1.48. The business has a fifty day moving average of $917.99 and a 200-day moving average of $814.53. The company has a debt-to-equity ratio of 1.25, a quick ratio of 1.83 and a current ratio of 2.62.

KLA (NASDAQ:KLAC - Get Free Report) last posted its quarterly earnings data on Thursday, July 31st. The semiconductor company reported $9.38 earnings per share (EPS) for the quarter, beating the consensus estimate of $8.53 by $0.85. The business had revenue of $3.17 billion during the quarter, compared to analysts' expectations of $3.08 billion. KLA had a net margin of 33.41% and a return on equity of 112.41%. The business's revenue was up 23.6% on a year-over-year basis. During the same period last year, the firm posted $6.60 earnings per share. KLA has set its Q1 2026 guidance at 7.760-9.300 EPS. On average, sell-side analysts forecast that KLA Corporation will post 31.59 EPS for the current fiscal year.

KLA Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, September 3rd. Investors of record on Monday, August 18th were paid a dividend of $1.90 per share. The ex-dividend date of this dividend was Monday, August 18th. This represents a $7.60 annualized dividend and a yield of 0.7%. KLA's dividend payout ratio is currently 25.01%.

Insider Buying and Selling at KLA

In related news, insider Ahmad A. Khan sold 13,716 shares of the stock in a transaction that occurred on Friday, August 29th. The shares were sold at an average price of $881.50, for a total transaction of $12,090,654.00. Following the completion of the sale, the insider directly owned 27,372 shares of the company's stock, valued at $24,128,418. This represents a 33.38% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Richard P. Wallace sold 10,801 shares of the stock in a transaction that occurred on Tuesday, August 12th. The shares were sold at an average price of $913.68, for a total transaction of $9,868,657.68. Following the sale, the chief executive officer directly owned 92,818 shares of the company's stock, valued at approximately $84,805,950.24. This represents a 10.42% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 32,605 shares of company stock valued at $29,348,291 in the last ninety days. Company insiders own 0.12% of the company's stock.

Institutional Trading of KLA

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Ulland Investment Advisors LLC acquired a new stake in KLA during the second quarter valued at approximately $32,000. Sentry Investment Management LLC acquired a new stake in KLA during the second quarter valued at approximately $36,000. Activest Wealth Management lifted 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 valued at $29,000 after purchasing an additional 41 shares during the last quarter. Alpine Bank Wealth Management purchased a new stake in shares of KLA in the 1st quarter valued at approximately $35,000. Finally, Olde Wealth Management LLC purchased a new stake in shares of KLA in the 1st quarter valued at approximately $36,000. 86.65% of the stock is owned by institutional investors and hedge funds.

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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