KLA’s (KLAC) Overweight Rating Reiterated at Cantor Fitzgerald

Cantor Fitzgerald reiterated their overweight rating on shares of KLA (NASDAQ:KLAC) in a research note published on Wednesday morning, Marketbeat Ratings reports. The firm currently has a $325.00 target price on the semiconductor company’s stock.

Several other equities analysts also recently commented on the stock. UBS Group set a $240.00 price objective on shares of KLA and gave the company a “neutral” rating in a report on Monday, July 20th. Susquehanna restated a “neutral” rating and set a $275.00 target price on shares of KLA in a research note on Tuesday, June 30th. Oppenheimer reaffirmed an “outperform” rating and set a $260.00 target price (up from $200.00) on shares of KLA in a report on Thursday, July 16th. Argus upped their price target on shares of KLA from $175.00 to $195.00 and gave the company a “buy” rating in a research note on Friday, May 1st. Finally, Needham & Company LLC reiterated a “buy” rating and issued a $270.00 price target on shares of KLA in a research note on Wednesday. Nineteen research analysts have rated the stock with a Buy rating and ten have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $223.70.

KLA Stock Performance

Shares of NASDAQ KLAC opened at $182.82 on Wednesday. The company has a current ratio of 2.88, a quick ratio of 2.11 and a debt-to-equity ratio of 0.93. KLA has a 12 month low of $83.22 and a 12 month high of $307.37. The stock has a 50 day moving average of $223.79 and a 200-day moving average of $181.51. The company has a market capitalization of $238.81 billion, a P/E ratio of 49.86, a P/E/G ratio of 1.40 and a beta of 1.41.

KLA (NASDAQ:KLAC) last posted its earnings results on Tuesday, July 28th. The semiconductor company reported $1.05 earnings per share for the quarter, topping 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 for the quarter, compared to analyst estimates of $3.61 billion. During the same period in the previous year, the firm earned $0.94 EPS. The firm’s revenue was up 15.2% compared to the same quarter last year. KLA has set its Q1 2027 guidance at 1.060-1.260 EPS. As a group, equities research analysts predict that KLA will post 5.37 EPS for the current year.

KLA Cuts Dividend

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, June 2nd. Shareholders of record on Monday, May 18th were given a dividend of $0.23 per share. The ex-dividend date was Monday, May 18th. This represents a $0.92 annualized dividend and a yield of 0.5%. KLA’s dividend payout ratio (DPR) is presently 25.07%.

Insider Transactions at KLA

In other news, CFO Bren D. Higgins sold 27,701 shares of KLA stock in a transaction on Thursday, July 2nd. The stock was sold at an average price of $265.69, for a total transaction of $7,359,878.69. Following the completion of the sale, the chief financial officer owned 263,472 shares of the company’s stock, valued at approximately $70,001,875.68. This trade represents a 9.51% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, EVP Mary Beth Wilkinson sold 14,392 shares of the business’s stock in a transaction dated Wednesday, July 1st. The shares were sold at an average price of $285.30, for a total transaction of $4,106,037.60. Following the completion of the sale, the executive vice president directly owned 53,367 shares of the company’s stock, valued at approximately $15,225,605.10. The trade was a 21.24% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last 90 days, insiders sold 132,333 shares of company stock valued at $29,547,170. 91.48% of the stock is currently owned by corporate insiders.

Institutional Trading of KLA

A number of institutional investors have recently bought and sold shares of KLAC. Farther Finance Advisors LLC raised its holdings in KLA by 86.6% in the 4th quarter. Farther Finance Advisors LLC now owns 4,063 shares of the semiconductor company’s stock valued at $4,937,000 after acquiring an additional 1,886 shares in the last quarter. Cornerstone Investment Partners LLC grew its holdings in shares of KLA by 0.4% during the 4th quarter. Cornerstone Investment Partners LLC now owns 96,846 shares of the semiconductor company’s stock worth $117,676,000 after purchasing an additional 374 shares in the last quarter. PFA Pension Forsikringsaktieselskab acquired a new stake in shares of KLA during the 4th quarter worth $119,618,000. Highland Capital Management LLC bought a new position in shares of KLA in the fourth quarter worth $3,128,000. Finally, American National Bank & Trust increased its position in shares of KLA by 2.5% in the fourth quarter. American National Bank & Trust now owns 14,030 shares of the semiconductor company’s stock worth $17,048,000 after purchasing an additional 346 shares during the period. Institutional investors own 86.65% of the company’s stock.

KLA News Roundup

Here are the key news stories impacting KLA this week:

• Positive Sentiment: Upgraded to Strong Buy: Zacks raised KLA to a Rank #1 (Strong Buy), citing improving earnings prospects. KLAC was also included on Zacks’ momentum and new Strong Buy lists. KLA upgraded to Strong Buy
• Positive Sentiment: Analyst support strengthened: JPMorgan lifted its price target to $238, while Needham reaffirmed its Buy rating and Cantor Fitzgerald assigned an Overweight rating. TD Cowen also maintained a $260 Buy-rated target, supported by accelerating growth and advanced packaging opportunities. JPMorgan raises KLA price target
• Positive Sentiment: AI and advanced packaging demand: KLA expects advanced-packaging revenue to rise more than 70% in 2026 as increasingly complex AI chips drive demand for inspection, metrology and yield-management equipment. Its latest quarter also exceeded consensus estimates for earnings and revenue, with revenue up 15.2% year over year. KLA advanced packaging growth
• Positive Sentiment: Favorable sector flows: Semiconductor ETFs attracted substantial new investor money this week as strong technology earnings fueled a chip-stock rally, creating a supportive backdrop for KLAC. Semiconductor ETFs draw cash
• Neutral Sentiment: Industry analysts argue semiconductor oversupply is unlikely before 2028 because the infrastructure required for excess capacity is not yet in place, supporting long-term equipment demand but not providing a company-specific catalyst. Semiconductor oversupply outlook
• Negative Sentiment: Despite the earnings beat and higher guidance, KLAC faced pressure after results as investors focused on uncertainty around the outlook. Its roughly 50 forward earnings multiple also leaves the stock vulnerable if AI-related growth expectations moderate. KLA earnings and stock reaction

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.