Brokerages Set KLA Corporation (NASDAQ:KLAC) Price Target at $218.41

Shares of KLA Corporation (NASDAQ:KLAC) have earned a consensus recommendation of “Moderate Buy” from the twenty-nine brokerages that are currently covering the firm, Marketbeat Ratings reports. Ten investment analysts have rated the stock with a hold rating and nineteen have assigned a buy rating to the company. The average 12-month price objective among brokers that have issued ratings on the stock in the last year is $223.70.

Several brokerages recently weighed in on KLAC. Susquehanna set a $215.00 price target on shares of KLA and gave the stock a “neutral” rating in a research report on Wednesday. The Goldman Sachs Group reiterated a “neutral” rating and set a $230.00 price objective on shares of KLA in a research report on Tuesday. Cantor Fitzgerald reissued an “overweight” rating and issued a $325.00 price objective on shares of KLA in a research note on Wednesday. Citic Securities upped their target price on shares of KLA from $135.00 to $197.00 in a research report on Wednesday, May 6th. Finally, New Street Research increased their price target on shares of KLA from $146.00 to $177.00 and gave the company a “neutral” rating in a report on Wednesday, April 29th.

Insider Buying and Selling

In other news, EVP Mary Beth Wilkinson sold 14,392 shares of the company’s stock in a transaction on Wednesday, July 1st. The stock was sold at an average price of $285.30, for a total transaction of $4,106,037.60. Following the transaction, the executive vice president directly owned 53,367 shares of the company’s stock, valued at approximately $15,225,605.10. This represents a 21.24% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Richard P. Wallace sold 45,120 shares of the stock in a transaction that occurred on Thursday, June 11th. The shares were sold at an average price of $221.34, for a total transaction of $9,986,725.44. Following the completion of the transaction, the chief executive officer directly owned 713,830 shares of the company’s stock, valued at $157,996,990.71. The trade was a 5.95% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 132,333 shares of company stock valued at $29,547,170 over the last quarter. 91.48% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On KLA

A number of large investors have recently bought and sold shares of the business. Handelsbanken Fonder AB lifted its holdings in KLA by 978.2% in the 2nd quarter. Handelsbanken Fonder AB now owns 858,984 shares of the semiconductor company’s stock valued at $259,164,000 after purchasing an additional 779,317 shares in the last quarter. Wedge Capital Management L L P NC grew its holdings in shares of KLA by 781.5% during the second quarter. Wedge Capital Management L L P NC now owns 359,277 shares of the semiconductor company’s stock worth $108,397,000 after buying an additional 318,520 shares in the last quarter. Bessemer Group Inc. raised its position in shares of KLA by 0.7% in the first quarter. Bessemer Group Inc. now owns 180,279 shares of the semiconductor company’s stock valued at $265,444,000 after buying an additional 1,291 shares during the last quarter. Clal Insurance Enterprises Holdings Ltd raised its position in shares of KLA by 151.2% in the first quarter. Clal Insurance Enterprises Holdings Ltd now owns 116,292 shares of the semiconductor company’s stock valued at $171,230,000 after buying an additional 70,000 shares during the last quarter. Finally, Cornerstone Investment Partners LLC lifted its stake in shares of KLA by 0.4% in the fourth quarter. Cornerstone Investment Partners LLC now owns 96,846 shares of the semiconductor company’s stock worth $117,676,000 after buying an additional 374 shares in the last quarter. Institutional investors and hedge funds own 86.65% of the company’s stock.

KLA Stock Performance

Shares of KLAC opened at $182.82 on Monday. The company has a debt-to-equity ratio of 0.93, a current ratio of 2.88 and a quick ratio of 2.11. KLA has a one year low of $83.22 and a one year high of $307.37. The firm has a market capitalization of $238.81 billion, a P/E ratio of 49.86, a PEG ratio of 1.40 and a beta of 1.41. The business has a fifty day moving average of $223.79 and a 200 day moving average of $181.51.

KLA (NASDAQ:KLAC) last announced its earnings results on Tuesday, July 28th. The semiconductor company reported $1.05 EPS 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 company had revenue of $3.66 billion for the quarter, compared to analysts’ expectations of $3.61 billion. During the same period last year, the firm earned $0.94 EPS. KLA’s revenue for the quarter 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, sell-side analysts anticipate that KLA will post 5.37 EPS for the current year.

KLA Cuts Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, June 2nd. Stockholders of record on Monday, May 18th were issued a $0.23 dividend. The ex-dividend date was Monday, May 18th. This represents a $0.92 dividend on an annualized basis and a dividend yield of 0.5%. KLA’s dividend payout ratio is presently 25.07%.

Key Headlines Impacting KLA

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

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.