KLA Sees Unusually High Options Volume (NASDAQ:KLAC)

KLA Corporation (NASDAQ:KLAC) was the recipient of some unusual options trading activity on Tuesday. Stock investors bought 22,007 put options on the stock. This is an increase of approximately 112% compared to the average daily volume of 10,362 put options.

Key KLA News

Here are the key news stories impacting KLA this week:

• Positive Sentiment: Cantor Fitzgerald maintained a highly bullish outlook on KLA Corporation (KLAC), citing potential for approximately 60% upside from the price referenced in the article. The analyst’s $325 price target reflects confidence in KLA’s dominant position in semiconductor process-control equipment and continued industry growth. KLA Corporation Had a Tough Month: 60% Returns Will Come According to This Wall Street Stalwart
• Positive Sentiment: The article notes that KLA has delivered five consecutive quarterly earnings beats, supporting the case that execution and demand remain solid even after the stock’s recent weakness. KLA previously reported year-over-year revenue growth and earnings above consensus expectations. KLA Corporation Had a Tough Month: 60% Returns Will Come According to This Wall Street Stalwart
• Neutral Sentiment: The supplied coverage does not identify a new negative operational development at KLA Corporation (KLAC). However, the stock is trading below its 50-day moving average, indicating near-term investor caution, while remaining above its 200-day moving average.

Wall Street Analysts Forecast Growth

KLAC has been the topic of a number of research reports. Susquehanna set a $215.00 price objective on shares of KLA and gave the stock a “neutral” rating in a research report on Wednesday, July 29th. TD Cowen reiterated a “buy” rating and set a $260.00 target price (up from $200.00) on shares of KLA in a research note on Thursday, July 9th. Morgan Stanley reiterated an “overweight” rating and issued a $253.00 price target on shares of KLA in a research note on Wednesday, July 29th. The Goldman Sachs Group reaffirmed a “neutral” rating and issued a $230.00 price objective on shares of KLA in a report on Tuesday, July 28th. Finally, Berenberg Bank raised their target price on shares of KLA from $177.00 to $200.00 and gave the stock a “buy” rating in a report on Thursday, April 30th. One research analyst has rated the stock with a Strong Buy rating, nineteen have given a Buy rating and nine have given a Hold rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average price target of $223.70.

KLA Price Performance

Shares of KLA stock traded down $11.33 during trading on Tuesday, reaching $194.43. 3,995,292 shares of the company’s stock were exchanged, compared to its average volume of 11,523,151. The company has a debt-to-equity ratio of 0.93, a quick ratio of 2.03 and a current ratio of 2.88. KLA has a 1-year low of $83.22 and a 1-year high of $307.37. The company has a market cap of $254.03 billion, a P/E ratio of 53.09, a PEG ratio of 1.56 and a beta of 1.45. The firm’s 50-day moving average price is $223.48 and its 200 day moving average price is $185.37.

KLA (NASDAQ:KLAC) last released its quarterly earnings data on Tuesday, July 28th. The semiconductor company reported $1.05 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.00 by $0.05. The business had revenue of $3.66 billion during the quarter, compared to analysts’ expectations of $3.61 billion. KLA had a net margin of 35.57% and a return on equity of 87.66%. The firm’s quarterly revenue was up 15.2% compared to the same quarter last year. During the same period in the prior year, the company earned $0.94 EPS. KLA has set its Q1 2027 guidance at 1.060-1.260 EPS. As a group, research analysts anticipate that KLA will post 5.42 earnings per share for the current year.

KLA Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, September 1st. Stockholders of record on Monday, August 17th will be given a $0.23 dividend. This is an increase from KLA’s previous quarterly dividend of $0.23. The ex-dividend date is Monday, August 17th. This represents a $0.92 dividend on an annualized basis and a dividend yield of 0.5%. KLA’s dividend payout ratio is presently 25.07%.

Insider Buying and Selling

In other KLA news, CAO Virendra A. Kirloskar sold 4,504 shares of the firm’s stock in a transaction that occurred on Wednesday, August 5th. The shares were sold at an average price of $195.50, for a total transaction of $880,532.00. Following the sale, the chief accounting officer directly owned 7,972 shares in the company, 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 SEC, which is accessible through this link. Also, CEO Richard P. Wallace sold 87,568 shares of the business’s stock in a transaction on Tuesday, August 11th. The shares were sold at an average price of $198.95, for a total transaction of $17,421,653.60. Following the completion of the sale, the chief executive officer directly owned 778,944 shares in the company, valued at $154,970,908.80. This represents a 10.11% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 258,533 shares of company stock worth $55,977,470 over the last ninety days. Insiders own 91.48% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of KLAC. Public Employees Retirement System of Ohio bought a new position in KLA in the 2nd quarter valued at about $163,950,000. Philadelphia Investment Partners LLC bought a new position in KLA in the 2nd quarter valued at $1,677,000. Ancora Advisors LLC purchased a new stake in KLA during the second quarter worth about $248,000. Kirtland Hills Capital Management LLC purchased a new stake in shares of KLA during the 2nd quarter worth approximately $2,737,000. Finally, Compass Financial Management LLC bought a new position in KLA during the second quarter worth about $3,356,000. 86.65% of the stock is owned by institutional investors.

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.