KLA (NASDAQ:KLAC) Upgraded to Strong-Buy at Zacks Research

Zacks Research upgraded shares of KLA (NASDAQ:KLAC) from a hold rating to a strong-buy rating in a research note published on Thursday,Zacks.com reports.

A number of other research firms have also recently commented on KLAC. Deutsche Bank Aktiengesellschaft reaffirmed a “hold” rating and issued a $195.00 target price (down from $220.00) on shares of KLA in a research report on Wednesday. Wells Fargo & Company set a $245.00 price target on shares of KLA and gave the company an “overweight” rating in a research report on Wednesday. Scotiabank set a $200.00 price target on shares of KLA in a research note on Wednesday, June 10th. Weiss Ratings lowered shares of KLA from a “buy (b)” rating to a “buy (b-)” rating in a report on Monday, May 4th. Finally, Morgan Stanley reaffirmed an “overweight” rating and set a $253.00 price objective on shares of KLA in a research report on Wednesday. One analyst has rated the stock with a Strong Buy rating, nineteen have given a Buy rating and nine have issued a Hold rating to the company’s stock. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $223.70.

KLA Price Performance

NASDAQ:KLAC opened at $182.82 on Thursday. KLA has a 52 week low of $83.22 and a 52 week high of $307.37. The company has a quick ratio of 2.11, a current ratio of 2.88 and a debt-to-equity ratio of 0.93. 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. The stock’s fifty day moving average is $223.79 and its two-hundred day moving average is $181.51.

KLA (NASDAQ:KLAC) last announced its quarterly earnings results on Tuesday, July 28th. The semiconductor company reported $1.05 EPS for the quarter, beating the consensus estimate of $1.00 by $0.05. The business had revenue of $3.66 billion for the quarter, compared to analyst estimates of $3.61 billion. KLA had a return on equity of 87.66% and a net margin of 35.57%.The company’s quarterly revenue was up 15.2% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.94 EPS. KLA has set its Q1 2027 guidance at 1.060-1.260 EPS. Equities analysts expect that KLA will post 5.37 EPS for the current year.

KLA Cuts Dividend

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

Insiders Place Their Bets

In other news, CEO Richard P. Wallace sold 45,120 shares of the firm’s stock in a transaction that occurred on Thursday, June 11th. The shares were sold at an average price of $221.34, for a total value of $9,986,725.44. Following the completion of the transaction, the chief executive officer owned 713,830 shares of the company’s stock, valued at approximately $157,996,990.71. This trade represents a 5.95% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, EVP Mary Beth Wilkinson sold 14,392 shares of KLA stock in a transaction that occurred on 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 transaction, the executive vice president owned 53,367 shares of the company’s stock, valued at $15,225,605.10. This trade represents a 21.24% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 132,333 shares of company stock worth $29,547,170 over the last three months. Company insiders own 91.48% of the company’s stock.

Institutional Trading of KLA

A number of large investors have recently modified their holdings of the stock. Regent Peak Wealth Advisors LLC boosted its holdings in KLA by 900.0% in the second quarter. Regent Peak Wealth Advisors LLC now owns 2,280 shares of the semiconductor company’s stock valued at $688,000 after purchasing an additional 2,052 shares during the period. Wedge Capital Management L L P NC grew its position 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. Butensky & Cohen Financial Security Inc. raised its holdings in KLA by 600.7% in the second quarter. Butensky & Cohen Financial Security Inc. now owns 31,561 shares of the semiconductor company’s stock valued at $9,522,000 after acquiring an additional 27,057 shares in the last quarter. Rise Advisors LLC purchased a new position in KLA in the second quarter worth approximately $262,000. Finally, Kentucky Trust Co increased its position in shares of KLA by 900.0% in the 2nd quarter. Kentucky Trust Co now owns 210 shares of the semiconductor company’s stock valued at $63,000 after purchasing an additional 189 shares during the last quarter. Hedge funds and other institutional investors own 86.65% of the company’s stock.

Key Stories 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.