Zacks Investment Research Downgrades KLA-Tencor Corp. (KLAC) to Hold
KLA-Tencor Corp. (NASDAQ:KLAC) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a note issued to investors on Tuesday.
According to Zacks, “KLA is one of the leading suppliers of inspection and metrology products and services. The fiscal first-quarter earnings of the company were above the Zacks Consensus Estimate. In the quarter, Lam terminated its proposed acquisition of KLA-Tencor, following antitrust objections from the Justice Department. KLA’s comprehensive product line, cost reduction initiatives and strong balance sheet remain positives that will generate growth whenever cyclical pressures permit. Though the competition and concentrated customer base increases execution risk, the increasing process control spending across foundry, memory and logic players through 2016 and beyond will enable KLA to deliver stronger results.”
A number of other equities research analysts also recently issued reports on the stock. Berenberg Bank upgraded shares of KLA-Tencor Corp. from a “hold” rating to a “buy” rating in a research report on Thursday, October 6th. Cowen and Company reissued an “outperform” rating and set a $80.00 price objective on shares of KLA-Tencor Corp. in a research note on Wednesday, October 5th. Credit Suisse Group AG reissued a “focus list” rating and set a $85.00 price objective on shares of KLA-Tencor Corp. in a research note on Monday, October 3rd. Susquehanna reissued a “neutral” rating on shares of KLA-Tencor Corp. in a research note on Saturday, August 13th. Finally, JPMorgan Chase & Co. reissued a “buy” rating on shares of KLA-Tencor Corp. in a research note on Wednesday, August 17th. One research analyst has rated the stock with a sell rating, six have assigned a hold rating, five have assigned a buy rating and two have given a strong buy rating to the company. The stock presently has an average rating of “Buy” and an average price target of $81.25.
Shares of KLA-Tencor Corp. (NASDAQ:KLAC) opened at 75.58 on Tuesday. KLA-Tencor Corp. has a 52-week low of $62.33 and a 52-week high of $77.85. The stock has a 50 day moving average price of $72.47 and a 200-day moving average price of $72.06. The stock has a market capitalization of $11.81 billion, a price-to-earnings ratio of 15.23 and a beta of 1.60.
KLA-Tencor Corp. (NASDAQ:KLAC) last posted its quarterly earnings results on Thursday, October 20th. The company reported $1.16 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $1.03 by $0.13. KLA-Tencor Corp. had a net margin of 25.15% and a return on equity of 138.28%. The company earned $751 million during the quarter, compared to the consensus estimate of $735.01 million. During the same period last year, the firm earned $0.71 EPS. The company’s revenue for the quarter was up 16.8% on a year-over-year basis. On average, equities research analysts predict that KLA-Tencor Corp. will post $5.36 EPS for the current fiscal year.
The business also recently disclosed a quarterly dividend, which will be paid on Thursday, December 1st. Stockholders of record on Tuesday, November 15th will be paid a dividend of $0.54 per share. The ex-dividend date of this dividend is Thursday, November 10th. This is a boost from KLA-Tencor Corp.’s previous quarterly dividend of $0.52. This represents a $2.16 annualized dividend and a dividend yield of 2.86%. KLA-Tencor Corp.’s payout ratio is currently 41.94%.
In related news, EVP Ahmad A. Khan sold 10,775 shares of KLA-Tencor Corp. stock in a transaction on Tuesday, October 25th. The shares were sold at an average price of $74.82, for a total transaction of $806,185.50. Following the transaction, the executive vice president now owns 17,173 shares in the company, valued at approximately $1,284,883.86. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CFO Bren D. Higgins sold 4,812 shares of KLA-Tencor Corp. stock in a transaction on Tuesday, October 25th. The shares were sold at an average price of $74.94, for a total transaction of $360,611.28. Following the transaction, the chief financial officer now owns 4,610 shares in the company, valued at approximately $345,473.40. The disclosure for this sale can be found here. Insiders own 0.26% of the company’s stock.
Institutional investors have recently bought and sold shares of the stock. First New York Securities LLC NY raised its position in KLA-Tencor Corp. by 51.2% in the second quarter. First New York Securities LLC NY now owns 1,400 shares of the company’s stock valued at $103,000 after buying an additional 474 shares during the last quarter. Global X Management Co. LLC raised its position in KLA-Tencor Corp. by 89.7% in the third quarter. Global X Management Co. LLC now owns 1,527 shares of the company’s stock valued at $106,000 after buying an additional 722 shares during the last quarter. Mizuho Asset Management Co. Ltd. raised its position in KLA-Tencor Corp. by 104.0% in the second quarter. Mizuho Asset Management Co. Ltd. now owns 1,981 shares of the company’s stock valued at $145,000 after buying an additional 1,010 shares during the last quarter. CENTRAL TRUST Co raised its position in KLA-Tencor Corp. by 40.0% in the third quarter. CENTRAL TRUST Co now owns 2,100 shares of the company’s stock valued at $146,000 after buying an additional 600 shares during the last quarter. Finally, MSI Financial Services Inc raised its position in KLA-Tencor Corp. by 31.6% in the third quarter. MSI Financial Services Inc now owns 2,151 shares of the company’s stock valued at $150,000 after buying an additional 517 shares during the last quarter. Institutional investors and hedge funds own 85.98% of the company’s stock.
KLA-Tencor Corp. Company Profile
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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