Argus Reaffirms Buy Rating for KLA (NASDAQ:KLAC)

KLA (NASDAQ:KLAC)‘s stock had its “buy” rating reiterated by investment analysts at Argus in a report released on Friday, Benzinga reports. They presently have a $225.00 price objective on the semiconductor company’s stock. Argus‘s target price would indicate a potential upside of 38.51% from the stock’s current price.

KLAC has been the topic of a number of other reports. Barclays reissued an “overweight” rating and issued a $225.00 price objective on shares of KLA in a research report on Monday, July 20th. Piper Sandler set a $425.00 target price on shares of KLA in a research note on Thursday. Royal Bank Of Canada reissued a “sector perform” rating and issued a $180.00 target price (up from $170.00) on shares of KLA in a report on Wednesday, July 29th. Jefferies Financial Group restated a “buy” rating and issued a $210.00 price target (up from $200.00) on shares of KLA in a research note on Wednesday, July 29th. Finally, Weiss Ratings raised KLA from a “hold (c+)” rating to a “buy (b-)” rating in a report on Friday, October 16th. Nineteen investment analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the company. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $220.35.

KLA Trading Down 3.0%

KLAC traded down $4.99 during mid-day trading on Friday, hitting $162.44. 1,503,806 shares of the stock were exchanged, compared to its average volume of 11,109,256. The firm’s fifty day moving average is $179.18 and its two-hundred day moving average is $181.70. KLA has a 1-year low of $107.20 and a 1-year high of $307.37. The company has a market cap of $211.99 billion, a PE ratio of 40.90, a PEG ratio of 1.41 and a beta of 1.45. The company has a current ratio of 2.88, a quick ratio of 2.03 and a debt-to-equity ratio of 0.93.

KLA (NASDAQ:KLAC) last issued its quarterly earnings results on Wednesday, October 28th. The semiconductor company reported $1.22 EPS for the quarter, beating the consensus estimate of $1.18 by $0.04. The company had revenue of $4.14 billion during the quarter, compared to analysts’ expectations of $4.04 billion. KLA had a net margin of 36.25% and a return on equity of 91.73%. The firm’s revenue was up 28.9% compared to the same quarter last year. During the same quarter last year, the company posted $8.47 EPS. Equities analysts forecast that KLA will post 5.43 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other KLA news, CAO Virendra A. Kirloskar sold 4,504 shares of the firm’s stock in a transaction dated Wednesday, August 5th. The stock was sold at an average price of $195.50, for a total value of $880,532.00. Following the sale, the chief accounting officer directly owned 7,972 shares of the company’s stock, valued at approximately $1,558,526. This trade represents a 36.10% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, EVP MaryBeth Wilkinson sold 13,802 shares of the company’s stock in a transaction dated Wednesday, August 5th. The shares were sold at an average price of $195.50, for a total transaction of $2,698,291.00. Following the transaction, the executive vice president directly owned 22,110 shares of the company’s stock, valued at approximately $4,322,505. This represents a 38.43% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 243,339 shares of company stock valued at $46,903,454. 79.39% of the stock is owned by company insiders.

Hedge Funds Weigh In On KLA

Several hedge funds and other institutional investors have recently modified their holdings of the company. Wellington Management Group LLP raised its position in KLA by 928.9% in the second quarter. Wellington Management Group LLP now owns 14,821,622 shares of the semiconductor company’s stock valued at $4,471,832,000 after purchasing an additional 13,381,153 shares during the period. Bank of New York Mellon Corp acquired a new position in shares of KLA in the 2nd quarter valued at approximately $2,522,430,000. Assenagon Asset Management S.A. boosted its stake in shares of KLA by 239.3% during the 3rd quarter. Assenagon Asset Management S.A. now owns 5,614,990 shares of the semiconductor company’s stock valued at $1,094,530,000 after buying an additional 3,959,927 shares during the last quarter. National Pension Service boosted its stake in shares of KLA by 899.4% during the 2nd quarter. National Pension Service now owns 3,634,859 shares of the semiconductor company’s stock valued at $1,096,673,000 after buying an additional 3,271,158 shares during the last quarter. Finally, Mirae Asset Global Investments Co. Ltd. acquired a new stake in shares of KLA during the third quarter worth approximately $377,898,000. 86.65% of the stock is owned by institutional investors and hedge funds.

Key Stories Impacting KLA

Here are the key news stories impacting KLA this week:

• Positive Sentiment: Quarterly results exceeded expectations. KLA reported fiscal 2027 first-quarter revenue of $4.14 billion, above the $4.04 billion consensus estimate. Non-GAAP EPS was $1.22 versus expectations of $1.18, while revenue increased 28.9% year over year. The company also generated $1.34 billion in free cash flow and returned $1.24 billion to shareholders. KLA Corporation Reports Fiscal 2027 First Quarter Results
• Positive Sentiment: Next-quarter guidance topped consensus. KLA forecast fiscal second-quarter revenue of $4.5 billion to $4.9 billion, implying a midpoint of $4.7 billion versus the $4.5 billion analyst consensus. Adjusted EPS guidance of $1.33 to $1.55 also brackets a consensus estimate of $1.36. KLA Expects Second-Quarter Revenue Range
• Positive Sentiment: AI-related demand remains the primary catalyst. Analysts cited rising wafer-inspection demand, margin expansion and the need for leading-edge fabs supporting AI chips. KLA expects the wafer-fabrication equipment market to exceed $200 billion in 2027, supporting a favorable multiyear outlook. KLA Forecasts Wafer Equipment Market Growth
• Neutral Sentiment: Analyst sentiment is mixed. JPMorgan raised its target to $240 and maintained an overweight rating, while Citigroup maintained a buy rating despite trimming its target to $275. These targets still imply substantial upside, but the differing revisions suggest expectations remain unsettled.
• Negative Sentiment: Several firms lowered price targets. Wells Fargo, Needham, Evercore ISI, Susquehanna, Cantor Fitzgerald and UBS reduced their targets following the results. UBS retained a hold rating, citing structural share-related headwinds, while Susquehanna also moved to neutral. These cuts may limit enthusiasm despite the strong operating outlook.

KLA Company Profile

KLA Corporation (NASDAQ: KLAC) develops process control, inspection and yield management solutions for the semiconductor and other advanced manufacturing industries. Its technologies help manufacturers identify defects, measure critical dimensions and monitor production processes to improve quality, reliability and manufacturing efficiency.

The company’s product portfolio includes wafer and reticle inspection systems, metrology and measurement tools, defect review and classification systems, and software for analyzing manufacturing data.