KLA (NASDAQ:KLAC) Stock Price Down 2.4% - Time to Sell?

Key Points

• KLA shares fell 2.4% to $174.46 on elevated trading volume, below both the 50-day and 200-day moving averages.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and an average price target of $221.26, despite varied individual targets and ratings.
• KLA reported quarterly earnings and revenue above expectations, with revenue rising 15.2% year over year, while also maintaining a modest 0.5% dividend yield; meanwhile, insiders sold significant shares in recent transactions.

KLA Corporation (NASDAQ:KLAC - Get Free Report) was down 2.4% during trading on Thursday. The company traded as low as $168.42 and last traded at $174.46. Approximately 13,686,606 shares traded hands during mid-day trading, an increase of 23% from the average session volume of 11,087,124 shares. The stock had previously closed at $178.81.

Analysts Set New Price Targets

Several analysts have commented on KLAC shares. Susquehanna set a $215.00 price objective on shares of KLA and gave the company a "neutral" rating in a research note on Wednesday, July 29th. Royal Bank Of Canada reiterated a "sector perform" rating and issued a $180.00 price objective (up from $170.00) on shares of KLA in a research note on Wednesday, July 29th. Bank of America raised their target price on shares of KLA from $210.00 to $317.00 and gave the stock a "buy" rating in a report on Tuesday, June 23rd. Deutsche Bank Aktiengesellschaft restated a "hold" rating and set a $195.00 target price (down from $220.00) on shares of KLA in a research report on Wednesday, July 29th. Finally, JPMorgan Chase & Co. upped their price target on shares of KLA from $200.00 to $238.00 and gave the company an "overweight" rating in a report on Wednesday, July 29th. Eighteen analysts have rated the stock with a Buy rating and eleven have given a Hold rating to the stock. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $221.26.

KLA Stock Down 2.4%

The firm has a market capitalization of $227.67 billion, a price-to-earnings ratio of 47.58, a P/E/G ratio of 1.63 and a beta of 1.45. The business has a 50 day simple moving average of $187.68 and a 200-day simple moving average of $196.64. The company has a debt-to-equity ratio of 0.93, a quick ratio of 2.03 and a current ratio of 2.88.

KLA (NASDAQ:KLAC - Get Free Report) last issued its quarterly earnings data on Tuesday, July 28th. The semiconductor company reported $1.05 earnings per share for the quarter, beating analysts' consensus estimates of $1.00 by $0.05. KLA had a return on equity of 87.66% and a net margin of 35.57%. The business had revenue of $3.66 billion during the quarter, compared to analysts' expectations of $3.61 billion. During the same period in the previous year, the firm posted $0.94 earnings per share. The company's revenue was up 15.2% on a year-over-year basis. KLA has set its Q1 2027 guidance at 1.060-1.260 EPS. On average, equities analysts expect that KLA Corporation will post 5.43 EPS for the current year.

KLA Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, September 1st. Shareholders of record on Monday, August 17th were issued a $0.23 dividend. This represents a $0.92 dividend on an annualized basis and a yield of 0.5%. This is a boost from KLA's previous quarterly dividend of $0.23. The ex-dividend date of this dividend was Monday, August 17th. KLA's dividend payout ratio is 25.07%.

Insider Activity at KLA

In other news, CEO Richard Wallace sold 87,568 shares of KLA stock in a transaction that occurred on Tuesday, August 11th. The shares were sold at an average price of $198.95, for a total transaction of $17,421,653.60. Following the completion of the sale, the chief executive officer directly owned 778,944 shares in the company, valued at approximately $154,970,908.80. This trade represents a 10.11% 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, EVP Brian Lorig sold 59,586 shares of the business's stock in a transaction that occurred on Thursday, August 13th. The stock was sold at an average price of $208.13, for a total value of $12,401,634.18. Following the sale, the executive vice president directly owned 77,681 shares in the company, valued at $16,167,746.53. This trade represents a 43.41% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 243,339 shares of company stock valued at $46,903,454. 79.39% of the stock is currently owned by corporate insiders.

Institutional Trading of KLA

Institutional investors and hedge funds have recently made changes to their positions in the stock. Wellington Management Group LLP raised its position in shares of KLA by 928.9% during the 2nd quarter. Wellington Management Group LLP now owns 14,821,622 shares of the semiconductor company's stock valued at $4,471,832,000 after acquiring an additional 13,381,153 shares in the last quarter. Bank of New York Mellon Corp acquired a new position in KLA in the second quarter worth $2,522,430,000. Assenagon Asset Management S.A. boosted its holdings in KLA by 239.3% in the third quarter. Assenagon Asset Management S.A. now owns 5,614,990 shares of the semiconductor company's stock worth $1,094,530,000 after purchasing an additional 3,959,927 shares during the period. National Pension Service increased its stake in KLA by 899.4% during the second quarter. National Pension Service now owns 3,634,859 shares of the semiconductor company's stock valued at $1,096,673,000 after purchasing an additional 3,271,158 shares during the last quarter. Finally, NEOS Investment Management LLC increased its stake in KLA by 987.0% during the second quarter. NEOS Investment Management LLC now owns 979,371 shares of the semiconductor company's stock valued at $295,486,000 after purchasing an additional 889,269 shares during the last quarter. 86.65% of the stock is currently owned by hedge funds and other institutional investors.

About KLA

KLA Corporation NASDAQ: KLAC develops process-control and yield-management solutions used by semiconductor and electronics manufacturers. Its systems help customers detect defects, measure and analyze materials and structures, and monitor manufacturing processes throughout the production of integrated circuits and other advanced electronic components.

The company's product portfolio includes inspection and metrology systems, wafer and reticle inspection equipment, process-control software, data analytics tools, and related services.

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