KLA-Tencor Corp. (KLAC) Rating Increased to Buy at Zacks Investment Research
KLA-Tencor Corp. (NASDAQ:KLAC) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a note issued to investors on Wednesday. The firm currently has a $78.00 target price on the stock. Zacks Investment Research’s price target indicates a potential upside of 11.43% from the stock’s current price.
According to Zacks, “KLA is one of the leading suppliers of inspection and metrology products and services. The biggest positive for the company at the moment is Lam Research’s agreement to acquire KLA in a cash and stock deal worth $5.08 billion. KLA’s comprehensive product line, market position, cost reduction initiatives and strong balance sheet will generate growth whenever cyclical pressures permit and make it an attractive target for Lam. While its memory exposure has increased over time, this is Lam’s area of strength. On the other hand, Lam is weaker in foundry and logic, which are areas of KLA’s strength. However, the company has a concentrated customer base, and near-term WFE spending does not play to its strengths (as a standalone company).The merger combines to leading equipment vendors, so until regulators approve the deal, uncertainties persist.”
A number of other research analysts have also recently weighed in on KLAC. B. Riley reaffirmed a “neutral” rating and set a $78.00 price target on shares of KLA-Tencor Corp. in a research report on Thursday, July 28th. Cowen and Company lifted their price target on shares of KLA-Tencor Corp. from $70.00 to $79.00 and gave the company a “market perform” rating in a research report on Friday, July 29th. Citigroup Inc. lifted their price target on shares of KLA-Tencor Corp. from $74.00 to $78.00 and gave the company a “neutral” rating in a research report on Friday, July 29th. Deutsche Bank AG lifted their price target on shares of KLA-Tencor Corp. from $72.00 to $78.00 and gave the company a “hold” rating in a research report on Friday, July 29th. Finally, Credit Suisse Group AG reissued a “hold” rating and set a $82.00 target price on shares of KLA-Tencor Corp. in a research report on Friday, July 29th. Nine equities research analysts have rated the stock with a hold rating and four have assigned a buy rating to the company. The stock currently has a consensus rating of “Hold” and a consensus target price of $73.46.
Shares of KLA-Tencor Corp. (NASDAQ:KLAC) traded down 0.07% during mid-day trading on Wednesday, reaching $69.95. 268,356 shares of the company traded hands. The company has a market capitalization of $10.91 billion, a P/E ratio of 15.58 and a beta of 1.54. KLA-Tencor Corp. has a 52 week low of $48.68 and a 52 week high of $77.85. The stock’s 50-day moving average is $69.61 and its 200-day moving average is $71.82.
KLA-Tencor Corp. (NASDAQ:KLAC) last announced its quarterly earnings results on Thursday, July 28th. The company reported $1.77 earnings per share for the quarter, beating analysts’ consensus estimates of $1.42 by $0.35. The firm had revenue of $919.17 million for the quarter, compared to analysts’ expectations of $842.10 million. KLA-Tencor Corp. had a net margin of 23.60% and a return on equity of 159.94%. KLA-Tencor Corp.’s revenue was up 21.5% compared to the same quarter last year. During the same period in the previous year, the company posted $0.99 earnings per share. On average, equities analysts predict that KLA-Tencor Corp. will post $4.92 EPS for the current fiscal year.
The firm also recently announced a quarterly dividend, which was paid on Thursday, September 1st. Shareholders of record on Monday, August 15th were paid a dividend of $0.52 per share. The ex-dividend date was Thursday, August 11th. This represents a $2.08 annualized dividend and a yield of 2.97%. KLA-Tencor Corp.’s payout ratio is 46.33%.
In other KLA-Tencor Corp. news, CFO Bren D. Higgins sold 363 shares of the business’s stock in a transaction on Tuesday, July 5th. The shares were sold at an average price of $72.23, for a total transaction of $26,219.49. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Company insiders own 0.20% of the company’s stock.
A number of hedge funds have recently added to or reduced their stakes in the stock. Vanguard Group Inc. raised its position in KLA-Tencor Corp. by 2.1% in the second quarter. Vanguard Group Inc. now owns 14,514,615 shares of the company’s stock valued at $1,063,195,000 after buying an additional 294,033 shares in the last quarter. JPMorgan Chase & Co. raised its position in KLA-Tencor Corp. by 23.7% in the second quarter. JPMorgan Chase & Co. now owns 13,524,187 shares of the company’s stock valued at $990,649,000 after buying an additional 2,592,262 shares in the last quarter. Primecap Management Co. CA raised its position in KLA-Tencor Corp. by 6.1% in the second quarter. Primecap Management Co. CA now owns 13,212,268 shares of the company’s stock valued at $967,799,000 after buying an additional 762,672 shares in the last quarter. Westchester Capital Management LLC raised its position in KLA-Tencor Corp. by 5.6% in the second quarter. Westchester Capital Management LLC now owns 2,854,514 shares of the company’s stock valued at $209,093,000 after buying an additional 150,206 shares in the last quarter. Finally, BlackRock Fund Advisors raised its position in KLA-Tencor Corp. by 10.6% in the second quarter. BlackRock Fund Advisors now owns 2,783,074 shares of the company’s stock valued at $203,860,000 after buying an additional 267,092 shares in the last quarter. Hedge funds and other institutional investors own 85.98% of the company’s stock.
About KLA-Tencor Corp.
KLA-Tencor Corporation is a supplier of process control and yield management solutions for the semiconductor and related nanoelectronics industries. The Company’s products are also used in various other industries, including the light emitting diode (LED) and data storage industries, as well as general materials research.
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