KLA Corporation $KLAC Stock: Smith Group Asset Management LLC Trims Stake

Smith Group Asset Management LLC trimmed its position in shares of KLA Corporation (NASDAQ:KLAC) by 49.5% in the 3rd quarter, according to the company in its most recent disclosure with the SEC. The fund owned 229,891 shares of the semiconductor company’s stock after selling 225,670 shares during the quarter. KLA comprises about 2.9% of Smith Group Asset Management LLC’s investment portfolio, making the stock its 12th largest holding. Smith Group Asset Management LLC’s holdings in KLA were worth $44,813,000 at the end of the most recent reporting period.

Other hedge funds have also modified their holdings of the company. Sigma Investment Counselors Inc. increased its position in shares of KLA by 10.8% during the third quarter. Sigma Investment Counselors Inc. now owns 34,861 shares of the semiconductor company’s stock worth $6,796,000 after purchasing an additional 3,386 shares in the last quarter. Victory Financial Group LLC boosted its position in shares of KLA by 4.7% in the 3rd quarter. Victory Financial Group LLC now owns 2,109 shares of the semiconductor company’s stock worth $411,000 after purchasing an additional 94 shares in the last quarter. Busey Bank boosted its position in shares of KLA by 6.9% in the 3rd quarter. Busey Bank now owns 1,262 shares of the semiconductor company’s stock worth $246,000 after purchasing an additional 82 shares in the last quarter. Balance Wealth Partners LLC purchased a new position in KLA during the 3rd quarter worth $61,000. Finally, SYM FINANCIAL Corp grew its stake in KLA by 4.2% during the 3rd quarter. SYM FINANCIAL Corp now owns 6,871 shares of the semiconductor company’s stock worth $1,339,000 after buying an additional 279 shares during the last quarter. 86.65% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

KLAC has been the topic of several recent analyst reports. Jefferies Financial Group reaffirmed a “buy” rating and set a $210.00 target price (up from $200.00) on shares of KLA in a research report on Wednesday, July 29th. Morgan Stanley set a $227.00 price target on KLA and gave the stock an “overweight” rating in a report on Tuesday, October 6th. Cantor Fitzgerald restated an “overweight” rating and set a $325.00 price target on shares of KLA in a research note on Wednesday, July 29th. Susquehanna set a $215.00 price objective on shares of KLA and gave the company a “neutral” rating in a report on Wednesday, July 29th. Finally, TD Cowen reaffirmed a “buy” rating and issued a $260.00 price objective (up from $200.00) on shares of KLA in a research report on Thursday, July 9th. Nineteen analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the company’s stock. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average target price of $221.26.

KLA Price Performance

NASDAQ KLAC opened at $158.77 on Thursday. The company has a debt-to-equity ratio of 0.93, a current ratio of 2.88 and a quick ratio of 2.03. The stock’s fifty day moving average price is $179.57 and its 200 day moving average price is $181.57. KLA Corporation has a 1 year low of $107.20 and a 1 year high of $307.37. The company has a market cap of $207.20 billion, a price-to-earnings ratio of 43.30, a PEG ratio of 1.29 and a beta of 1.45.

KLA (NASDAQ:KLAC) last issued its earnings results on Wednesday, October 28th. The semiconductor company reported $1.22 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.18 by $0.04. KLA had a return on equity of 87.66% and a net margin of 35.57%. The company had revenue of $4.14 billion during the quarter, compared to analyst estimates of $4.04 billion. During the same quarter last year, the business posted $8.47 EPS. The firm’s quarterly revenue was up 28.9% on a year-over-year basis. As a group, equities research analysts forecast that KLA Corporation will post 5.43 earnings per share for the current year.

KLA Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, September 1st. Stockholders of record on Monday, August 17th were paid a $0.23 dividend. The ex-dividend date was Monday, August 17th. This is a positive change from KLA’s previous quarterly dividend of $0.23. This represents a $0.92 annualized dividend and a dividend yield of 0.6%. KLA’s dividend payout ratio (DPR) is 25.07%.

Trending Headlines about KLA

Here are the key news stories impacting KLA this week:

• Positive Sentiment: KLA reported fiscal first-quarter revenue of $4.14 billion, above the $4.0 billion guidance midpoint and the $4.04 billion analyst consensus. Non-GAAP diluted EPS was $1.22, exceeding estimates near $1.18-$1.19 and rising from $0.88 a year earlier. KLA Corporation Reports Fiscal 2027 First Quarter Results
• Positive Sentiment: Management’s guidance was characterized as strong, supporting expectations for continued demand for KLA’s process-control and inspection equipment. Operating cash flow reached $1.53 billion, free cash flow totaled $1.34 billion and the company returned $1.24 billion to shareholders during the quarter. KLA Shares Climb on Q1 Double Beat, Strong Guidance
• Positive Sentiment: Chip-equipment stocks benefited from SK Hynix’s view that the memory shortage could persist into 2030, implying years of additional semiconductor-fabric construction and equipment spending. Chip Equipment Stocks Rally as SK Hynix Signals Memory Shortage Into 2030
• Positive Sentiment: Exchange-traded funds purchased approximately $23.3 million of KLA shares on October 26, providing an additional indication of institutional demand. ETFs Bought $23.3 Million of KLA-Tencor
• Neutral Sentiment: Analysts and market commentators continue to view KLA as reasonably valued after the results, but investors are weighing its premium valuation against the durability of AI and data-center capital spending.
• Negative Sentiment: Broader market rotation away from technology and AI-linked shares has limited the benefit of KLA’s solid results and guidance, while ongoing concerns about the sustainability of AI spending remain a source of volatility. Market Rotation Overshadows KLA’s Solid Results and Guidance

Insider Transactions at KLA

In related news, EVP Brian Lorig sold 59,586 shares of the company’s stock in a transaction that occurred on Thursday, August 13th. The stock was sold at an average price of $208.13, for a total value of $12,401,634.18. Following the sale, the executive vice president owned 77,681 shares in the company, valued at $16,167,746.53. This represents a 43.41% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Richard P. Wallace sold 87,568 shares of the firm’s stock in a transaction that occurred on Tuesday, August 11th. The stock was sold at an average price of $198.95, for a total transaction of $17,421,653.60. Following the transaction, the chief executive officer directly owned 778,944 shares of the company’s stock, valued at $154,970,908.80. This represents a 10.11% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 243,339 shares of company stock valued at $46,903,454. 79.39% of the stock is owned by company insiders.

KLA Company Profile

KLA Corporation (NASDAQ: KLAC) develops process control, inspection and yield management solutions for the semiconductor and other advanced manufacturing industries. Its technologies help manufacturers identify defects, measure critical dimensions and monitor production processes to improve quality, reliability and manufacturing efficiency.

The company’s product portfolio includes wafer and reticle inspection systems, metrology and measurement tools, defect review and classification systems, and software for analyzing manufacturing data.