KLA Stock Scheduled to Split on Friday, June 12th (NASDAQ:KLAC)

Key Points

• KLA is scheduled to complete a 10-for-1 stock split before the market opens on Friday, June 12, with new shares payable after the close on Thursday, June 11.
• The semiconductor company recently reported better-than-expected quarterly results, posting $9.40 EPS on $3.42 billion in revenue and raising its quarterly dividend to $2.30 per share from $1.90.
• Wall Street remains constructive on KLAC, with an average analyst rating of Moderate Buy and an average price target of $1,842.19, while the company also has an active $7 billion share buyback program.

KLA Corporation (NASDAQ:KLAC - Free Report) shares are set to split before the market opens on Friday, June 12th. The 10-1 split was announced on Thursday, May 7th. The newly issued shares will be payable to shareholders after the market closes on Thursday, June 11th.

KLA Stock Performance

Shares of NASDAQ KLAC opened at $2,011.39 on Wednesday. The stock has a 50 day moving average price of $1,703.45 and a 200 day moving average price of $1,470.92. KLA has a 52 week low of $740.44 and a 52 week high of $2,022.81. 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 stock has a market capitalization of $262.75 billion, a PE ratio of 56.93, a price-to-earnings-growth ratio of 2.80 and a beta of 1.50.

KLA (NASDAQ:KLAC - Get Free Report) last issued its quarterly earnings results on Wednesday, April 29th. The semiconductor company reported $9.40 EPS for the quarter, beating the consensus estimate of $9.17 by $0.23. KLA had a return on equity of 91.89% and a net margin of 35.66%.The firm had revenue of $3.42 billion during the quarter, compared to analysts' expectations of $3.37 billion. During the same period in the prior year, the firm posted $8.41 earnings per share. The business's quarterly revenue was up 11.5% compared to the same quarter last year. KLA has set its Q4 2026 guidance at 8.870-10.870 EPS. Analysts predict that KLA will post 37.06 earnings per share for the current fiscal year.

KLA Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, June 2nd. Investors of record on Monday, May 18th will be given a dividend of $2.30 per share. This represents a $9.20 annualized dividend and a yield of 0.5%. This is a boost from KLA's previous quarterly dividend of $1.90. The ex-dividend date of this dividend is Monday, May 18th. KLA's payout ratio is currently 26.04%.

KLA declared that its Board of Directors has approved a stock repurchase plan on Thursday, March 12th that authorizes the company to buyback $7.00 billion in shares. This buyback authorization authorizes the semiconductor company to purchase up to 3.7% of its shares through open market purchases. Shares buyback plans are usually a sign that the company's board believes its stock is undervalued.

Wall Street Analysts Forecast Growth

Several research analysts recently commented on KLAC shares. BNP Paribas Exane increased their price target on KLA from $1,550.00 to $1,700.00 and gave the company a "neutral" rating in a research report on Thursday, April 30th. Susquehanna raised their price objective on KLA from $1,600.00 to $1,700.00 and gave the company a "neutral" rating in a research report on Thursday, April 30th. Barclays raised their price objective on KLA from $1,595.00 to $1,700.00 and gave the company an "overweight" rating in a research report on Friday, January 30th. New Street Research raised their price objective on KLA from $1,460.00 to $1,770.00 and gave the company a "neutral" rating in a research report on Wednesday, April 29th. Finally, Morgan Stanley reaffirmed an "overweight" rating and issued a $1,900.00 price objective on shares of KLA in a research report on Thursday, April 30th. Twenty analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the stock. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $1,842.19.

Insider Buying and Selling at KLA

In other news, CEO Richard P. Wallace sold 4,512 shares of the stock in a transaction that occurred on Tuesday, May 12th. The stock was sold at an average price of $1,794.00, for a total transaction of $8,094,528.00. Following the transaction, the chief executive officer owned 75,895 shares in the company, valued at approximately $136,155,630. This trade represents a 5.61% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Company insiders own 91.48% of the company's stock.

Hedge Funds Weigh In On KLA

Large investors have recently made changes to their positions in the company. Westpac Banking Corp increased its stake in shares of KLA by 11.2% during the third quarter. Westpac Banking Corp now owns 9,276 shares of the semiconductor company's stock worth $10,005,000 after purchasing an additional 932 shares during the period. Harbor Investment Advisory LLC increased its stake in shares of KLA by 4,023.1% during the fourth quarter. Harbor Investment Advisory LLC now owns 1,072 shares of the semiconductor company's stock worth $1,303,000 after purchasing an additional 1,046 shares during the period. Farther Finance Advisors LLC increased its stake in shares of KLA by 86.6% during the fourth quarter. Farther Finance Advisors LLC now owns 4,063 shares of the semiconductor company's stock worth $4,937,000 after purchasing an additional 1,886 shares during the period. BOKF NA increased its stake in shares of KLA by 16.6% during the third quarter. BOKF NA now owns 8,534 shares of the semiconductor company's stock worth $9,205,000 after purchasing an additional 1,218 shares during the period. Finally, Close Asset Management Ltd bought a new position in shares of KLA during the third quarter worth approximately $133,209,000. Institutional investors own 86.65% of the company's stock.

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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