Citigroup Has Lowered Expectations for KLA (NASDAQ:KLAC) Stock Price

KLA (NASDAQ:KLAC) had its price objective dropped by Citigroup from $290.00 to $275.00 in a report issued on Thursday, Benzinga reports. The brokerage currently has a “buy” rating on the semiconductor company’s stock. Citigroup‘s price objective would suggest a potential upside of 65.22% from the company’s previous close.

A number of other analysts also recently issued reports on the stock. Evercore reaffirmed an “outperform” rating and set a $185.00 price objective on shares of KLA in a report on Thursday. BMO Capital Markets set a $133.00 target price on KLA in a research note on Thursday. Susquehanna lowered their price target on KLA from $215.00 to $190.00 and set a “neutral” rating on the stock in a research report on Thursday. Truist Financial set a $225.00 price target on KLA in a research note on Thursday. Finally, Stifel Nicolaus set a $230.00 price objective on KLA and gave the stock a “buy” rating in a report on Thursday. Nineteen equities research analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $219.28.

KLA Price Performance

Shares of NASDAQ KLAC traded up $7.68 during midday trading on Thursday, hitting $166.45. 8,550,562 shares of the company’s stock were exchanged, compared to its average volume of 11,127,328. The company has a current ratio of 2.88, a quick ratio of 2.03 and a debt-to-equity ratio of 0.93. The business’s fifty day moving average price is $179.57 and its two-hundred day moving average price is $181.57. The company has a market cap of $217.22 billion, a price-to-earnings ratio of 45.40, a PEG ratio of 1.29 and a beta of 1.45. KLA has a 12-month low of $107.20 and a 12-month high of $307.37.

KLA (NASDAQ:KLAC) last announced its earnings results on Wednesday, October 28th. The semiconductor company reported $1.22 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.18 by $0.04. KLA had a net margin of 35.57% and a return on equity of 87.66%. The business had revenue of $4.14 billion during the quarter, compared to analyst estimates of $4.04 billion. During the same period in the previous year, the business posted $8.47 earnings per share. KLA’s revenue for the quarter was up 28.9% on a year-over-year basis. As a group, research analysts forecast that KLA will post 5.43 EPS for the current fiscal year.

Insider Buying and Selling

In other KLA news, EVP MaryBeth Wilkinson sold 13,802 shares of KLA stock in a transaction that occurred on Wednesday, August 5th. The stock was sold at an average price of $195.50, for a total value of $2,698,291.00. Following the transaction, the executive vice president directly owned 22,110 shares of the company’s stock, valued at $4,322,505. The trade was a 38.43% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, EVP Brian Lorig sold 59,586 shares of the business’s stock in a transaction that occurred on Thursday, August 13th. The shares were sold at an average price of $208.13, for a total value of $12,401,634.18. Following the completion of the sale, the executive vice president owned 77,681 shares of the company’s stock, valued at $16,167,746.53. The trade was a 43.41% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 243,339 shares of company stock valued at $46,903,454 in the last 90 days. 79.39% of the stock is owned by insiders.

Institutional Investors Weigh In On KLA

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Wellington Management Group LLP grew its holdings in KLA by 928.9% in the 2nd quarter. Wellington Management Group LLP now owns 14,821,622 shares of the semiconductor company’s stock worth $4,471,832,000 after acquiring an additional 13,381,153 shares during the last quarter. Bank of New York Mellon Corp bought a new position in shares of KLA during the second quarter valued at about $2,522,430,000. Assenagon Asset Management S.A. raised its stake in shares of KLA by 239.3% during the third 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 acquiring an additional 3,959,927 shares during the last quarter. National Pension Service boosted its holdings in shares of KLA by 899.4% during the second quarter. National Pension Service now owns 3,634,859 shares of the semiconductor company’s stock worth $1,096,673,000 after purchasing an additional 3,271,158 shares during the period. Finally, PineStone Asset Management Inc. boosted its holdings in shares of KLA by 11.5% during the third quarter. PineStone Asset Management Inc. now owns 2,418,400 shares of the semiconductor company’s stock worth $471,419,000 after purchasing an additional 248,700 shares during the period. 86.65% of the stock is currently owned by institutional investors.

Key Stories Impacting KLA

Here are the key news stories impacting KLA this week:

• Positive Sentiment: KLA reported fiscal Q1 revenue of $4.14 billion, above the $4.04 billion analyst consensus, while non-GAAP earnings of $1.22 per share exceeded expectations of $1.18. Revenue grew 28.9% year over year, marking the company’s 10th consecutive quarter of growth. KLA Corporation Reports Fiscal 2027 First Quarter Results
• Positive Sentiment: Management projected fiscal Q2 revenue of approximately $4.7 billion, within a $4.5 billion-to-$4.9 billion range and above Wall Street expectations. KLA also expects the wafer-fabrication-equipment market to exceed $200 billion in 2027, supporting demand for its process-control tools. KLA forecasts December-quarter revenue and wafer equipment market outlook
• Positive Sentiment: The semiconductor-equipment sector is benefiting from expectations of prolonged memory-chip shortages and additional fab construction, providing a favorable industry backdrop for KLA. JPMorgan also raised its price target to $240 from $238. Chip equipment stocks rally on memory shortage outlook
• Neutral Sentiment: Several firms lowered their targets following the earnings report: Wells Fargo to $210, Needham to $200, Evercore ISI to $185, Susquehanna to $190, Cantor Fitzgerald to $225 and UBS to $180. Most targets remain above the current share price, while ratings range from overweight to neutral or hold. KLA analysts cut forecasts following Q1 earnings
• Negative Sentiment: The broad reduction in price targets signals concern that KLA’s elevated valuation and structural share-market headwinds limit upside, despite strong operating performance. UBS specifically maintained a Hold rating while citing these longer-term risks. UBS maintains Hold rating on KLA

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.