KLA (NASDAQ:KLAC) Stock Price Expected to Rise, Barclays Analyst Says

Key Points

• Barclays has raised its price target for KLA stock from $590 to $750, while maintaining an "equal weight" rating, suggesting a potential downside of 16.86% from the current price.
• KLA's recent earnings report showed an earnings per share of $8.41, exceeding estimates, and a quarterly revenue of $3.06 billion, representing a 35.5% year-over-year increase.
• Insider trades revealed that CEO Richard P. Wallace sold 10,802 shares at an average price of $683.30, indicating a decrease in his ownership stake.

KLA (NASDAQ:KLAC - Get Free Report) had its price objective lifted by stock analysts at Barclays from $590.00 to $750.00 in a report issued on Monday,Benzinga reports. The firm currently has an "equal weight" rating on the semiconductor company's stock. Barclays's price target would suggest a potential downside of 16.86% from the company's current price.

Other equities research analysts also recently issued research reports about the company. TD Cowen raised their target price on KLA from $770.00 to $800.00 and gave the company a "hold" rating in a report on Thursday, May 1st. Citigroup reiterated a "buy" rating and set a $1,035.00 target price (up from $835.00) on shares of KLA in a research report on Monday, July 7th. Stifel Nicolaus boosted 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. Cowen reissued a "hold" rating on shares of KLA in a report on Thursday, May 1st. Finally, Deutsche Bank Aktiengesellschaft cut KLA from a "buy" rating to a "hold" rating and set a $790.00 price objective for the company. in a research report on Tuesday, May 20th. Eleven analysts have rated the stock with a hold rating and seven have assigned a buy rating to the company's stock. According to MarketBeat.com, KLA currently has an average rating of "Hold" and an average price target of $858.19.

KLA Stock Performance

Shares of KLA stock opened at $902.09 on Monday. The company has a debt-to-equity ratio of 1.47, a current ratio of 2.54 and a quick ratio of 1.74. The stock has a market capitalization of $119.29 billion, a price-to-earnings ratio of 32.79, a price-to-earnings-growth ratio of 1.68 and a beta of 1.42. The business has a 50-day moving average of $862.09 and a 200 day moving average of $762.38. KLA has a 12 month low of $551.33 and a 12 month high of $945.87.

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

KLA announced that its Board of Directors has authorized a stock repurchase plan on Wednesday, April 30th that allows the company to buyback $5.00 billion in outstanding shares. This buyback authorization allows 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 board of directors believes its shares are undervalued.

Insider Buying and Selling at KLA

In other news, CEO Richard P. Wallace sold 10,802 shares of the business's stock in a transaction on Tuesday, May 6th. The stock was sold at an average price of $683.30, for a total value of $7,381,006.60. Following the sale, the chief executive officer owned 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 transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, CFO Bren D. Higgins sold 1,019 shares of the company's stock in a transaction on Thursday, May 22nd. The shares were sold at an average price of $766.46, for a total value 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 approximately $21,291,492.34. This trade represents a 3.54% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 11,860 shares of company stock valued at $8,196,798 in the last quarter. Corporate insiders own 0.12% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of the company. CIBC Private Wealth Group LLC boosted its stake in KLA by 14.7% during the 4th quarter. CIBC Private Wealth Group LLC now owns 3,607 shares of the semiconductor company's stock valued at $2,475,000 after purchasing an additional 462 shares during the period. National Bank of Canada FI increased its holdings in KLA by 172.2% during the 4th quarter. National Bank of Canada FI now owns 357,305 shares of the semiconductor company's stock valued at $225,145,000 after purchasing an additional 226,041 shares in the last quarter. Geode Capital Management LLC raised its position in KLA by 1.0% in the 4th quarter. Geode Capital Management LLC now owns 3,253,302 shares of the semiconductor company's stock valued at $2,046,472,000 after purchasing an additional 31,608 shares during the last quarter. Headlands Technologies LLC bought a new position in KLA in the 4th quarter valued at $754,000. Finally, Trexquant Investment LP raised its position in KLA by 0.6% in the 4th quarter. Trexquant Investment LP now owns 26,363 shares of the semiconductor company's stock valued at $16,612,000 after purchasing an additional 157 shares during the last quarter. 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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