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

Key Points

• Stifel Nicolaus raised its price target on KLA from $191 to $270 and kept a buy rating, implying about 21% upside from the current price.
• Other analysts remain constructive on the stock, with several firms lifting targets and the consensus rating sitting at Moderate Buy; the average price target is $287.80.
• KLA reported strong quarterly results with EPS of $9.40 and revenue of $3.42 billion, both above estimates, and it also authorized a $7 billion share buyback.

KLA (NASDAQ:KLAC - Get Free Report) had its target price boosted by Stifel Nicolaus from $191.00 to $270.00 in a note issued to investors on Friday,Benzinga reports. The firm presently has a "buy" rating on the semiconductor company's stock. Stifel Nicolaus' target price would suggest a potential upside of 21.33% from the company's current price.

Other research analysts have also recently issued reports about the stock. TD Cowen reiterated a "buy" rating and issued a $260.00 price objective (up from $200.00) on shares of KLA in a report on Thursday. Scotiabank set a $200.00 target price on KLA in a research report on Wednesday, June 10th. Wells Fargo & Company reiterated an "overweight" rating and set a $305.00 price target (up from $210.00) on shares of KLA in a research report on Monday, June 22nd. Deutsche Bank Aktiengesellschaft restated a "hold" rating and issued a $175.00 price objective on shares of KLA in a report on Thursday, April 30th. Finally, Oppenheimer reaffirmed an "outperform" rating and set a $200.00 target price on shares of KLA in a report on Thursday, April 30th. Twenty analysts have rated the stock with a Buy rating and ten have given a Hold rating to the company. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $287.80.

KLA Trading Down 3.0%

KLA stock opened at $222.53 on Friday. KLA has a 1 year low of $83.22 and a 1 year high of $307.37. The firm's 50-day moving average is $215.07 and its 200-day moving average is $172.95. The company has a debt-to-equity ratio of 1.01, a quick ratio of 2.11 and a current ratio of 3.03. The company has a market cap of $290.69 billion, a P/E ratio of 64.96, a PEG ratio of 2.44 and a beta of 1.41.

KLA (NASDAQ:KLAC - Get Free Report) last issued its quarterly earnings data on Wednesday, April 29th. The semiconductor company reported $9.40 EPS for the quarter, topping analysts' consensus estimates of $0.92 by $8.48. The firm had revenue of $3.42 billion during the quarter, compared to the consensus estimate of $3.37 billion. KLA had a return on equity of 91.89% and a net margin of 35.66%.The firm's revenue was up 11.5% on a year-over-year basis. During the same period in the prior year, the business earned $0.84 EPS. KLA has set its Q4 2026 guidance at 8.870-10.870 EPS. On average, equities analysts expect that KLA will post 3.71 earnings per share for the current year.

KLA declared that its Board of Directors has authorized a share buyback program on Thursday, March 12th that authorizes the company to repurchase $7.00 billion in outstanding shares. This repurchase authorization authorizes the semiconductor company to buy up to 3.6% of its shares through open market purchases. Shares repurchase programs are generally a sign that the company's management believes its stock is undervalued.

Insiders Place Their Bets

In other news, EVP Mary Beth Wilkinson sold 14,392 shares of the business's stock in a transaction that occurred on Wednesday, July 1st. The shares were sold at an average price of $285.30, for a total transaction of $4,106,037.60. Following the sale, the executive vice president owned 53,367 shares in the company, valued at $15,225,605.10. The trade was a 21.24% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Richard P. Wallace sold 45,120 shares of the company's stock in a transaction that occurred on Thursday, June 11th. The shares were sold at an average price of $221.34, for a total transaction of $9,986,725.44. Following the completion of the sale, the chief executive officer owned 713,830 shares of the company's stock, valued at approximately $157,996,990.71. This trade represents a 5.95% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 132,333 shares of company stock worth $29,547,170. Company insiders own 91.48% of the company's stock.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the business. McIlrath & Eck LLC increased its holdings in shares of KLA by 6.8% in the 1st quarter. McIlrath & Eck LLC now owns 94 shares of the semiconductor company's stock valued at $139,000 after purchasing an additional 6 shares during the period. Motco increased its holdings in KLA by 1.8% in the fourth quarter. Motco now owns 405 shares of the semiconductor company's stock worth $492,000 after buying an additional 7 shares during the last quarter. Nemes Rush Group LLC lifted its stake in KLA by 17.1% in the fourth quarter. Nemes Rush Group LLC now owns 48 shares of the semiconductor company's stock valued at $58,000 after acquiring an additional 7 shares during the last quarter. SouthState Bank Corp grew its position in KLA by 6.7% in the fourth quarter. SouthState Bank Corp now owns 111 shares of the semiconductor company's stock worth $135,000 after acquiring an additional 7 shares in the last quarter. Finally, West Michigan Advisors LLC increased its stake in shares of KLA by 2.7% during the 4th quarter. West Michigan Advisors LLC now owns 305 shares of the semiconductor company's stock worth $371,000 after purchasing an additional 8 shares during the last quarter. 86.65% of the stock is owned by institutional investors and hedge funds.

About KLA

KLA is a provider of process control and yield management solutions for the semiconductor and related microelectronics industries. The company designs and manufactures equipment, software and services used by chipmakers to analyze and control manufacturing processes, detect defects, measure critical dimensions and improve yield across wafer fabrication, photomask and packaging operations. KLA's offerings are aimed at enabling production of advanced logic, memory, and specialty devices at progressively smaller technology nodes and more complex package structures.

Its product portfolio includes optical and e-beam inspection systems, metrology tools for critical dimension and film measurement, mask and reticle inspection platforms, as well as enterprise software and data analytics that aggregate process data and drive automated process control.

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