KLA-Tencor (KLAC) Downgraded by Zacks Investment Research to Hold

KLA-Tencor (NASDAQ:KLAC) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report released on Monday.

According to Zacks, “KLA offers a complete yield management solutions which includes hardware, software and services. The company delivered strong second-quarter results driven by strong demand environment, customer acceptance of key products, growth in China and operational efficiencies. The addittion of new capacity by Wafer manufacturers and adoption of more complex architectures by IC customers are driving demand for the company’s new bare wafer products. KLA’s cost reduction initiatives and strong balance sheet are positives amid cyclical pressures. Though the stiff competition and concentrated customer base increases execution risk, the rising process control spending across foundry, memory and logic players through 2018 and beyond will enable KLA to deliver stronger results. However, the stock has underperformed the industry it belongs to on a year-to-date basis.”

A number of other brokerages have also weighed in on KLAC. Stifel Nicolaus raised their target price on KLA-Tencor from $121.00 to $139.00 and gave the company a “buy” rating in a research note on Wednesday, January 24th. BidaskClub upgraded KLA-Tencor from a “hold” rating to a “buy” rating in a research note on Wednesday, January 24th. B. Riley restated a “buy” rating and issued a $142.00 target price (up from $129.00) on shares of KLA-Tencor in a research note on Monday, January 22nd. KeyCorp raised their target price on KLA-Tencor from $134.00 to $151.00 and gave the company an “overweight” rating in a research note on Friday. Finally, Needham & Company LLC raised their target price on KLA-Tencor from $130.00 to $135.00 and gave the company a “buy” rating in a research note on Friday. One equities research analyst has rated the stock with a sell rating, five have issued a hold rating and ten have assigned a buy rating to the company. KLA-Tencor currently has an average rating of “Buy” and a consensus target price of $118.41.

Shares of KLA-Tencor (KLAC) traded down $1.81 during trading hours on Monday, hitting $111.63. The stock had a trading volume of 1,000,663 shares, compared to its average volume of 1,448,532. KLA-Tencor has a 52 week low of $84.57 and a 52 week high of $121.65. The firm has a market capitalization of $17,766.98, a price-to-earnings ratio of 26.93 and a beta of 1.63. The company has a debt-to-equity ratio of 2.03, a quick ratio of 3.06 and a current ratio of 3.73.

KLA-Tencor (NASDAQ:KLAC) last announced its earnings results on Thursday, January 25th. The semiconductor company reported $1.97 earnings per share for the quarter, beating the Zacks’ consensus estimate of $1.73 by $0.24. KLA-Tencor had a return on equity of 85.81% and a net margin of 17.28%. The company had revenue of $975.82 million during the quarter, compared to analyst estimates of $968.00 million. During the same period last year, the company posted $1.52 earnings per share. The firm’s quarterly revenue was up 11.3% compared to the same quarter last year. analysts predict that KLA-Tencor will post 7.49 EPS for the current fiscal year.

In related news, Director Emiko Higashi sold 2,375 shares of the firm’s stock in a transaction dated Thursday, January 18th. The stock was sold at an average price of $115.00, for a total value of $273,125.00. Following the transaction, the director now owns 11,294 shares in the company, valued at $1,298,810. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, EVP Teri A. Little sold 1,678 shares of the firm’s stock in a transaction dated Tuesday, October 31st. The shares were sold at an average price of $109.44, for a total value of $183,640.32. Following the completion of the transaction, the executive vice president now owns 8,452 shares in the company, valued at approximately $924,986.88. The disclosure for this sale can be found here. In the last quarter, insiders sold 33,039 shares of company stock worth $3,464,189. 0.20% of the stock is owned by company insiders.

A number of institutional investors and hedge funds have recently modified their holdings of the business. Janus Henderson Group PLC boosted its holdings in KLA-Tencor by 4.8% during the third quarter. Janus Henderson Group PLC now owns 4,516,903 shares of the semiconductor company’s stock worth $478,792,000 after buying an additional 208,499 shares during the last quarter. Pictet Asset Management Ltd. boosted its holdings in KLA-Tencor by 46.0% during the third quarter. Pictet Asset Management Ltd. now owns 2,444,102 shares of the semiconductor company’s stock worth $259,075,000 after buying an additional 770,480 shares during the last quarter. Ameriprise Financial Inc. boosted its holdings in KLA-Tencor by 375.7% during the third quarter. Ameriprise Financial Inc. now owns 1,120,753 shares of the semiconductor company’s stock worth $118,799,000 after buying an additional 885,147 shares during the last quarter. Legal & General Group Plc boosted its holdings in KLA-Tencor by 5.4% during the third quarter. Legal & General Group Plc now owns 827,064 shares of the semiconductor company’s stock worth $87,662,000 after buying an additional 42,006 shares during the last quarter. Finally, Koch Industries Inc. boosted its holdings in KLA-Tencor by 16,899.5% during the second quarter. Koch Industries Inc. now owns 745,260 shares of the semiconductor company’s stock worth $737,000 after buying an additional 740,876 shares during the last quarter. Hedge funds and other institutional investors own 90.81% of the company’s stock.

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About KLA-Tencor

KLA-Tencor Corporation (KLA-Tencor) is a supplier of process control and yield management solutions for the semiconductor and related nanoelectronics industries. The Company’s products are also used in a number of other high technology industries, including the light emitting diode (LED) and data storage industries, as well as general materials research.

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