KLA (NASDAQ:KLAC) Shares Down 2.8% – Time to Sell?

KLA Corporation (NASDAQ:KLAC) dropped 2.8% on Wednesday. The stock traded as low as $177.39 and last traded at $178.81. Approximately 14,431,082 shares traded hands during mid-day trading, an increase of 30% from the average session volume of 11,073,511 shares. The stock had previously closed at $184.00.

Trending Headlines about KLA

Here are the key news stories impacting KLA this week:

• Positive Sentiment: Wall Street’s consensus price target implies approximately 27.9% upside for KLA Corporation (KLAC). The article notes that improving earnings-estimate revisions could provide a more meaningful near-term catalyst than the target itself. Wall Street Analysts See a 27.86% Upside in KLA
• Positive Sentiment: Recent institutional ownership data showed substantial share additions by investors including Invesco, Norges Bank, Capital International Investors and JPMorgan, suggesting continued support from major shareholders. However, this data reflects the most recent quarterly filings rather than real-time trading. Why KLA stock fell 4.6% today
• Neutral Sentiment: Analysts are divided on valuation. KLA’s five-year performance, strong profitability and exposure to semiconductor inspection demand support the long-term case, but its elevated earnings multiple has prompted questions about whether much of the growth is already priced in. KLA Stock Looks Fully Valued After Its 5 Year Run
• Negative Sentiment: Semiconductor-equipment shares sold off broadly as investors locked in gains and reassessed the durability of AI infrastructure spending. Applied Materials, Lam Research and ASML also weakened, indicating that the move was not specific to KLA. Semiconductor Equipment Stocks Slide as Investors Take Profits
• Negative Sentiment: Morgan Stanley reduced its price target for KLAC to $227, reinforcing concerns that the stock’s valuation and recent gains may limit near-term upside. Additional risks cited include greater competition in parts of the chip supply chain and uncertainty around future AI-related spending. Morgan Stanley cuts target for KLA Corporation stock to USD 227

Analysts Set New Price Targets

KLAC has been the topic of a number of recent research reports. Citigroup reiterated a “buy” rating on shares of KLA in a research note on Wednesday, June 17th. JPMorgan Chase & Co. boosted their price target on shares of KLA from $200.00 to $238.00 and gave the company an “overweight” rating in a report on Wednesday, July 29th. The Goldman Sachs Group restated a “neutral” rating and set a $230.00 price target on shares of KLA in a research report on Tuesday, July 28th. Jefferies Financial Group reaffirmed a “buy” rating and issued a $210.00 price objective (up from $200.00) on shares of KLA in a report on Wednesday, July 29th. Finally, Zacks Research downgraded shares of KLA from a “strong-buy” rating to a “hold” rating in a research report on Monday, September 28th. Eighteen analysts have rated the stock with a Buy rating and eleven have issued a Hold rating to the company. According to MarketBeat, KLA currently has an average rating of “Moderate Buy” and an average price target of $221.26.

KLA Stock Performance

The firm has a market capitalization of $233.35 billion, a price-to-earnings ratio of 48.76, a P/E/G ratio of 1.68 and a beta of 1.45. The company has a 50-day moving average price of $187.96 and a 200-day moving average price of $196.41. The company has a quick ratio of 2.03, a current ratio of 2.88 and a debt-to-equity ratio of 0.93.

KLA (NASDAQ:KLAC) last announced its earnings results on Tuesday, July 28th. The semiconductor company reported $1.05 earnings per share for the quarter, beating the consensus estimate of $1.00 by $0.05. KLA had a return on equity of 87.66% and a net margin of 35.57%. The firm had revenue of $3.66 billion for the quarter, compared to the consensus estimate of $3.61 billion. During the same quarter in the previous year, the business earned $0.94 EPS. The firm’s revenue for the quarter was up 15.2% on a year-over-year basis. KLA has set its Q1 2027 guidance at 1.060-1.260 EPS. As a group, equities research analysts forecast that KLA Corporation will post 5.43 earnings per share for the current year.

KLA Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, September 1st. Stockholders of record on Monday, August 17th were issued a dividend of $0.23 per share. This represents a $0.92 dividend on an annualized basis and a dividend yield of 0.5%. This is a positive change from KLA’s previous quarterly dividend of $0.23. The ex-dividend date of this dividend was Monday, August 17th. KLA’s dividend payout ratio is 25.07%.

Insider Activity at KLA

In related news, CEO Richard Wallace sold 72,019 shares of the company’s stock in a transaction dated Tuesday, September 15th. The shares were sold at an average price of $171.88, for a total value of $12,378,625.72. Following the completion of the sale, the chief executive officer owned 706,925 shares of the company’s stock, valued at $121,506,269. This represents a 9.25% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, CAO Virendra A. Kirloskar sold 4,504 shares of the company’s stock in a transaction dated Wednesday, August 5th. The stock was sold at an average price of $195.50, for a total transaction of $880,532.00. Following the completion of the sale, the chief accounting officer directly owned 7,972 shares of the company’s stock, valued at $1,558,526. The trade was a 36.10% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 243,339 shares of company stock valued at $46,903,454 in the last ninety days. Company insiders own 79.39% of the company’s stock.

Institutional Trading of KLA

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Wellington Management Group LLP increased its stake in shares of KLA by 928.9% during 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 acquiring an additional 13,381,153 shares during the period. Bank of New York Mellon Corp bought a new stake in KLA during the second quarter worth approximately $2,522,430,000. National Pension Service lifted its position in KLA by 899.4% in 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. NEOS Investment Management LLC lifted its position in KLA by 987.0% in the second quarter. NEOS Investment Management LLC now owns 979,371 shares of the semiconductor company’s stock worth $295,486,000 after purchasing an additional 889,269 shares during the period. Finally, Railway Pension Investments Ltd lifted its position in KLA by 960.4% in the second quarter. Railway Pension Investments Ltd now owns 926,652 shares of the semiconductor company’s stock worth $279,580,000 after purchasing an additional 839,265 shares during the period. 86.65% of the stock is currently owned by institutional investors.

KLA Company Profile

KLA Corporation (NASDAQ: KLAC) develops process-control and yield-management solutions used by semiconductor and electronics manufacturers. Its systems help customers detect defects, measure and analyze materials and structures, and monitor manufacturing processes throughout the production of integrated circuits and other advanced electronic components.

The company’s product portfolio includes inspection and metrology systems, wafer and reticle inspection equipment, process-control software, data analytics tools, and related services.