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

Key Points

• TD Cowen analysts raised their price target for KLA stock from $800.00 to $900.00, suggesting a potential upside of 2.39% from the previous close, while maintaining a "hold" rating.
• KLA's recent earnings report revealed an EPS of $9.38, exceeding estimates and reflecting a 23.6% increase in revenue compared to the same quarter last year.
• The company approved a $5.00 billion share repurchase program, indicating that its board believes the shares are undervalued.

KLA (NASDAQ:KLAC - Get Free Report) had its price objective upped by equities research analysts at TD Cowen from $800.00 to $900.00 in a research report issued to clients and investors on Friday. The firm currently has a "hold" rating on the semiconductor company's stock. TD Cowen's target price indicates a potential upside of 2.39% from the stock's previous close.

Other research analysts also recently issued research reports about the stock. Wall Street Zen downgraded shares of KLA from a "buy" rating to a "hold" rating in a report on Saturday, July 5th. Oppenheimer raised their price target on shares of KLA from $740.00 to $950.00 and gave the company an "outperform" rating in a report on Tuesday, June 17th. JPMorgan Chase & Co. cut 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. Wells Fargo & Company reiterated an "equal weight" rating and issued a $920.00 target price (up from $870.00) on shares of KLA in a research note on Tuesday, July 8th. Finally, Morgan Stanley raised their target price on shares of KLA from $916.00 to $928.00 and gave the company an "overweight" rating in a research note on Friday. Eleven research analysts have rated the stock with a hold rating and seven have issued a buy rating to the company's stock. Based on data from MarketBeat, the company presently has a consensus rating of "Hold" and a consensus price target of $865.19.

KLA Stock Down 5.0%

KLAC stock opened at $879.03 on Friday. KLA has a 12-month low of $551.33 and a 12-month high of $945.87. The company has a quick ratio of 1.74, a current ratio of 2.54 and a debt-to-equity ratio of 1.47. The company has a market cap of $116.24 billion, a price-to-earnings ratio of 31.95, a PEG ratio of 1.72 and a beta of 1.42. The company has a 50 day moving average of $872.48 and a two-hundred day moving average of $767.52.

KLA (NASDAQ:KLAC - Get Free Report) last released its earnings results on Thursday, July 31st. The semiconductor company reported $9.38 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $8.53 by $0.85. The company had revenue of $3.17 billion during the quarter, compared to the consensus estimate of $3.08 billion. KLA had a net margin of 31.99% and a return on equity of 112.97%. The company's revenue 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. On average, equities analysts anticipate that KLA will post 31.59 earnings per share for the current fiscal year.

KLA declared that its board has approved a share repurchase program on Wednesday, April 30th that allows the company to buyback $5.00 billion in shares. This buyback authorization allows the semiconductor company to repurchase up to 5.4% of its shares through open market purchases. Shares buyback programs are often a sign that the company's board believes its shares are undervalued.

Insider Transactions at KLA

In other news, CAO Virendra A. Kirloskar sold 39 shares of the firm's stock in a transaction dated Wednesday, July 2nd. The shares were sold at an average price of $891.50, for a total transaction of $34,768.50. Following the completion of the transaction, the chief accounting officer directly owned 2,616 shares of the company's stock, valued at approximately $2,332,164. This trade represents a 1.47% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Richard P. Wallace sold 10,802 shares of KLA stock in a transaction dated 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 transaction, the chief executive officer directly owned 78,740 shares of the company's stock, valued at $53,803,042. This represents a 12.06% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders sold 11,860 shares of company stock valued at $8,196,798. Company insiders own 0.12% of the company's stock.

Hedge Funds Weigh In On KLA

Institutional investors have recently added to or reduced their stakes in the company. Ulland Investment Advisors LLC bought a new position in shares of KLA in the second quarter worth about $32,000. Sentry Investment Management LLC bought a new position in shares of KLA in the second quarter worth about $36,000. Activest Wealth Management raised its stake in shares of KLA by 4,100.0% in the first quarter. Activest Wealth Management now owns 42 shares of the semiconductor company's stock worth $29,000 after acquiring an additional 41 shares during the last quarter. Alpine Bank Wealth Management bought a new position in shares of KLA in the first quarter worth about $35,000. Finally, Olde Wealth Management LLC bought a new position in shares of KLA in the first quarter worth about $36,000. 86.65% of the stock is owned by 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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