KLA Corporation (NASDAQ:KLAC) Receives Average Recommendation of “Moderate Buy” from Brokerages

Shares of KLA Corporation (NASDAQ:KLAC) have been given an average rating of “Moderate Buy” by the thirty research firms that are covering the company, MarketBeat reports. Ten research analysts have rated the stock with a hold rating and twenty have given a buy rating to the company. The average twelve-month target price among brokers that have updated their coverage on the stock in the last year is $277.3357.

Several brokerages have weighed in on KLAC. The Goldman Sachs Group upped their target price on shares of KLA from $150.50 to $155.00 and gave the stock a “neutral” rating in a research report on Thursday, April 30th. Cantor Fitzgerald set a $325.00 price target on KLA and gave the stock an “overweight” rating in a research note on Monday. Sanford C. Bernstein upped their price target on KLA from $187.50 to $197.50 and gave the stock an “outperform” rating in a report on Wednesday, May 20th. TD Cowen raised their price objective on KLA from $180.00 to $200.00 and gave the company a “buy” rating in a research note on Thursday, April 30th. Finally, Scotiabank set a $200.00 price objective on KLA in a research note on Wednesday, June 10th.

KLA Price Performance

Shares of NASDAQ KLAC opened at $266.19 on Thursday. The company has a debt-to-equity ratio of 1.01, a quick ratio of 2.11 and a current ratio of 3.03. KLA has a one year low of $83.22 and a one year high of $307.37. The firm has a market capitalization of $347.72 billion, a P/E ratio of 75.34, a PEG ratio of 4.47 and a beta of 1.40. The company’s fifty day moving average is $209.75 and its two-hundred day moving average is $168.42.

KLA (NASDAQ:KLAC) last announced its quarterly earnings results on Wednesday, April 29th. The semiconductor company reported $9.40 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.92 by $8.48. KLA had a net margin of 35.66% and a return on equity of 91.89%. The business had revenue of $3.42 billion during the quarter, compared to the consensus estimate of $3.37 billion. During the same quarter last year, the firm posted $0.84 EPS. The business’s 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 forecast that KLA will post 3.71 EPS for the current fiscal year.

KLA Cuts Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, June 2nd. Shareholders of record on Monday, May 18th were issued a $0.23 dividend. The ex-dividend date of this dividend was Monday, May 18th. This represents a $0.92 annualized dividend and a yield of 0.3%. KLA’s dividend payout ratio is 26.06%.

KLA declared that its Board of Directors has authorized a share repurchase plan on Thursday, March 12th that permits the company to repurchase $7.00 billion in shares. This repurchase authorization permits the semiconductor company to reacquire up to 3.6% of its stock through open market purchases. Stock repurchase plans are usually an indication that the company’s leadership believes its stock is undervalued.

Trending Headlines about KLA

Here are the key news stories impacting KLA this week:

• Positive Sentiment: Investor chatter remains focused on stronger AI-driven semiconductor spending, with KLA viewed as a key beneficiary of rising wafer-fab capacity, new fab projects, and improved equipment-cycle expectations. KLA Corporation Stock (KLAC) Opinions on AI-Driven Semiconductor Cycle
• Positive Sentiment: The company’s recent upbeat outlook on wafer fab equipment demand and its large $7 billion buyback authorization continue to support bullish sentiment. Why KLA shares rose today
• Positive Sentiment: Analysts remain constructive, with multiple firms reiterating buy-equivalent ratings and several raising price targets on expectations for continued AI infrastructure spending and semiconductor capital investment.
• Neutral Sentiment: Unusual call-option activity suggests traders are positioning for more upside, but options flow alone is not a clear fundamental catalyst.
• Negative Sentiment: KLAC has been dragged lower as semiconductor peers fell broadly, and the Nasdaq-100 also softened on weakness in chip names such as Micron, AMD, Applied Materials, and Lam Research. QQQ is down 0.9% today, on KLAC stock price movement
• Negative Sentiment: Recent insider selling by CEO Richard Wallace may add a small headwind to sentiment, though it does not change the longer-term demand story.

Insider Activity at KLA

In related news, CEO Richard P. Wallace sold 45,120 shares of the stock in a transaction dated Thursday, June 11th. The shares were sold at an average price of $221.34, for a total value of $9,986,725.44. Following the sale, the chief executive officer directly owned 713,830 shares of the company’s stock, valued at approximately $157,996,990.71. This represents a 5.95% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. 91.48% of the stock is owned by corporate insiders.

Institutional Trading of KLA

Institutional investors and hedge funds have recently modified their holdings of the business. PFA Pension Forsikringsaktieselskab acquired a new stake in shares of KLA in the fourth quarter valued at approximately $119,618,000. Clal Insurance Enterprises Holdings Ltd increased its stake in shares of KLA by 151.2% during the 1st quarter. Clal Insurance Enterprises Holdings Ltd now owns 116,292 shares of the semiconductor company’s stock worth $171,230,000 after purchasing an additional 70,000 shares in the last quarter. Pinebridge Investments LLC acquired a new position in shares of KLA during the 4th quarter worth approximately $32,812,000. Russell Investments Group Ltd. raised its position in shares of KLA by 31.4% during the 4th quarter. Russell Investments Group Ltd. now owns 91,413 shares of the semiconductor company’s stock worth $111,910,000 after purchasing an additional 21,850 shares during the last quarter. Finally, Kepler Cheuvreux Suisse SA lifted its stake in KLA by 521.1% in the 4th quarter. Kepler Cheuvreux Suisse SA now owns 18,719 shares of the semiconductor company’s stock valued at $22,741,000 after buying an additional 15,705 shares in the last quarter. Hedge funds and other institutional investors own 86.65% of the company’s stock.

KLA Company Profile

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.