KLA (NASDAQ:KLAC) Posts Earnings Results

KLA (NASDAQ:KLAC) announced its earnings results on Thursday. The semiconductor company reported $8.85 EPS for the quarter, topping the consensus estimate of $8.75 by $0.10, FiscalAI reports. The firm had revenue of $3.30 billion for the quarter, compared to analysts’ expectations of $3.25 billion. KLA had a return on equity of 107.26% and a net margin of 33.83%.

KLA Stock Up 3.5%

Shares of KLA stock traded up $57.51 during trading on Thursday, hitting $1,684.71. 1,481,216 shares of the stock traded hands, compared to its average volume of 1,180,836. The stock has a market cap of $221.36 billion, a P/E ratio of 52.90, a PEG ratio of 3.88 and a beta of 1.45. The company has a fifty day moving average price of $1,307.44 and a two-hundred day moving average price of $1,117.76. KLA has a twelve month low of $551.33 and a twelve month high of $1,693.35. The company has a debt-to-equity ratio of 1.18, a quick ratio of 1.88 and a current ratio of 2.69.

KLA Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, December 2nd. Stockholders of record on Monday, November 17th were issued a dividend of $1.90 per share. This represents a $7.60 annualized dividend and a dividend yield of 0.5%. The ex-dividend date was Monday, November 17th. KLA’s payout ratio is currently 23.86%.

Analyst Ratings Changes

KLAC has been the subject of several research reports. Rothschild & Co Redburn raised their target price on KLA from $1,100.00 to $1,300.00 and gave the company a “neutral” rating in a research note on Friday, October 31st. Stifel Nicolaus boosted their target price on KLA from $1,260.00 to $1,600.00 and gave the stock a “buy” rating in a research report on Wednesday, January 14th. The Goldman Sachs Group increased their price target on KLA from $1,120.00 to $1,280.00 and gave the company a “neutral” rating in a research report on Thursday, October 30th. Wolfe Research lifted their price target on KLA from $1,500.00 to $1,800.00 and gave the stock an “outperform” rating in a research note on Monday. Finally, Bank of America upped their price objective on shares of KLA from $1,450.00 to $1,650.00 and gave the company a “buy” rating in a research note on Tuesday, January 13th. Two analysts have rated the stock with a Strong Buy rating, seventeen have given a Buy rating and nine have given a Hold rating to the company’s stock. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $1,477.64.

Key Headlines Impacting KLA

Here are the key news stories impacting KLA this week:

• Positive Sentiment: KLA beat estimates for the quarter — GAAP diluted EPS $8.68, non‑GAAP EPS $8.85 (consensus $8.75) and revenue $3.30B (consensus ~$3.25B). Management also provided investor materials (slide deck). Read More. Read More.
• Positive Sentiment: Results showed strong cash flow and capital returns: operating cash flow $1.37B this quarter ($4.77B LTM), free cash flow $1.26B ($4.38B LTM), and $797.4M returned to shareholders this quarter ($3.01B LTM). This supports buybacks/dividends and investor confidence. Read More.
• Positive Sentiment: Several firms raised ratings/targets — Wolfe Research to $1,800, Evercore ISI to $1,700, Wells Fargo upgraded to Overweight (PT $1,600), and KLA is cited among Goldman Sachs’ top semiconductor picks. Analyst support likely boosted buying. Read More. Read More.
• Positive Sentiment: High-profile bullish commentary (e.g., Jim Cramer noting persistent equipment demand/“shortage that can’t be met”) adds retail/institutional momentum. Read More.
• Neutral Sentiment: Pre-earnings previews and coverage set expectations and drove attention to the print; these pieces are informational rather than new catalysts. Read More.

Insider Activity at KLA

In other news, CEO Richard P. Wallace sold 10,803 shares of the stock in a transaction on Tuesday, November 11th. The shares were sold at an average price of $1,203.10, for a total transaction of $12,997,089.30. Following the transaction, the chief executive officer owned 81,211 shares in the company, valued at $97,704,954.10. This represents a 11.74% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CFO Bren D. Higgins sold 2,254 shares of KLA stock in a transaction on Tuesday, December 16th. The shares were sold at an average price of $1,237.01, for a total transaction of $2,788,220.54. Following the completion of the sale, the chief financial officer directly owned 32,154 shares of the company’s stock, valued at approximately $39,774,819.54. The trade was a 6.55% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 91.48% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of the company. Horizon Investments LLC boosted its holdings in KLA by 30.1% during the third quarter. Horizon Investments LLC now owns 10,981 shares of the semiconductor company’s stock valued at $11,844,000 after acquiring an additional 2,540 shares during the period. Williams Jones Wealth Management LLC. boosted its stake in KLA by 2.1% during the 3rd quarter. Williams Jones Wealth Management LLC. now owns 5,359 shares of the semiconductor company’s stock valued at $5,781,000 after purchasing an additional 109 shares during the period. Captrust Financial Advisors increased its position in KLA by 13.8% in the 2nd quarter. Captrust Financial Advisors now owns 5,118 shares of the semiconductor company’s stock worth $4,584,000 after buying an additional 619 shares during the period. Monetary Management Group Inc. lifted its holdings in shares of KLA by 0.4% during the second quarter. Monetary Management Group Inc. now owns 3,773 shares of the semiconductor company’s stock worth $3,380,000 after buying an additional 15 shares during the last quarter. Finally, Brooklyn Investment Group boosted its position in shares of KLA by 17.3% in the third quarter. Brooklyn Investment Group now owns 1,658 shares of the semiconductor company’s stock valued at $1,788,000 after acquiring an additional 245 shares during the period. Institutional investors own 86.65% of the company’s stock.

About KLA

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.