KLA (NASDAQ:KLAC) Stock Rating Upgraded by Zacks Research

KLA (NASDAQ:KLAC) was upgraded by research analysts at Zacks Research from a “hold” rating to a “strong-buy” rating in a note issued to investors on Thursday,Zacks.com reports.

Other research analysts have also recently issued reports about the stock. New Street Research raised their price objective on shares of KLA from $146.00 to $177.00 and gave the stock a “neutral” rating in a research note on Wednesday, April 29th. Deutsche Bank Aktiengesellschaft reiterated a “hold” rating and set a $195.00 target price (down from $220.00) on shares of KLA in a report on Wednesday. Barclays reissued an “overweight” rating and issued a $225.00 price target on shares of KLA in a report on Monday, July 20th. Jefferies Financial Group reaffirmed a “buy” rating and set a $210.00 price objective (up from $200.00) on shares of KLA in a research note on Wednesday. Finally, Stifel Nicolaus set a $250.00 price objective on KLA and gave the stock a “buy” rating in a research report on Wednesday. One 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. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $223.70.

KLA Price Performance

Shares of NASDAQ KLAC opened at $182.82 on Thursday. The stock has a market cap of $238.81 billion, a price-to-earnings ratio of 49.86, a PEG ratio of 1.40 and a beta of 1.41. KLA has a 52 week low of $83.22 and a 52 week high of $307.37. The company’s 50-day moving average price is $223.79 and its 200 day moving average price is $181.51. The company has a current ratio of 2.88, a quick ratio of 2.11 and a debt-to-equity ratio of 0.93.

KLA (NASDAQ:KLAC) last posted its earnings results on Tuesday, July 28th. The semiconductor company reported $1.05 earnings per share for the quarter, beating the consensus estimate of $1.00 by $0.05. The firm had revenue of $3.66 billion during the quarter, compared to the consensus estimate of $3.61 billion. KLA had a net margin of 35.57% and a return on equity of 87.66%. The firm’s revenue for the quarter was up 15.2% on a year-over-year basis. During the same period last year, the firm posted $0.94 EPS. KLA has set its Q1 2027 guidance at 1.060-1.260 EPS. As a group, research analysts forecast that KLA will post 5.37 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, EVP Mary Beth Wilkinson sold 14,392 shares of the business’s stock in a transaction that occurred on Wednesday, July 1st. The shares were sold at an average price of $285.30, for a total value of $4,106,037.60. Following the completion of the sale, the executive vice president directly owned 53,367 shares in the company, valued at approximately $15,225,605.10. The trade was a 21.24% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Richard P. Wallace sold 45,120 shares of the company’s stock in a transaction that occurred on Thursday, June 11th. The stock was sold at an average price of $221.34, for a total transaction of $9,986,725.44. Following the transaction, the chief executive officer directly owned 713,830 shares of the company’s stock, valued at $157,996,990.71. This trade represents a 5.95% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 132,333 shares of company stock valued at $29,547,170. Insiders own 91.48% of the company’s stock.

Hedge Funds Weigh In On KLA

A number of hedge funds have recently made changes to their positions in the stock. Basepoint Wealth LLC purchased a new stake in shares of KLA during the 4th quarter valued at $32,000. Hilton Head Capital Partners LLC acquired a new position in KLA in the fourth quarter valued at $41,000. Triumph Capital Management acquired a new position in KLA in the third quarter valued at $40,000. Nemes Rush Group LLC grew its position in KLA by 17.1% during the fourth quarter. Nemes Rush Group LLC now owns 48 shares of the semiconductor company’s stock valued at $58,000 after acquiring an additional 7 shares during the period. Finally, Cornerstone Planning Group LLC grew its position in KLA by 36.4% during the first quarter. Cornerstone Planning Group LLC now owns 60 shares of the semiconductor company’s stock valued at $88,000 after acquiring an additional 16 shares during the period. Institutional investors and hedge funds own 86.65% of the company’s stock.

Key KLA News

Here are the key news stories impacting KLA this week:

• Positive Sentiment: Upgraded to Strong Buy: Zacks raised KLA to a Rank #1 (Strong Buy), citing improving earnings prospects. KLAC was also included on Zacks’ momentum and new Strong Buy lists. KLA upgraded to Strong Buy
• Positive Sentiment: Analyst support strengthened: JPMorgan lifted its price target to $238, while Needham reaffirmed its Buy rating and Cantor Fitzgerald assigned an Overweight rating. TD Cowen also maintained a $260 Buy-rated target, supported by accelerating growth and advanced packaging opportunities. JPMorgan raises KLA price target
• Positive Sentiment: AI and advanced packaging demand: KLA expects advanced-packaging revenue to rise more than 70% in 2026 as increasingly complex AI chips drive demand for inspection, metrology and yield-management equipment. Its latest quarter also exceeded consensus estimates for earnings and revenue, with revenue up 15.2% year over year. KLA advanced packaging growth
• Positive Sentiment: Favorable sector flows: Semiconductor ETFs attracted substantial new investor money this week as strong technology earnings fueled a chip-stock rally, creating a supportive backdrop for KLAC. Semiconductor ETFs draw cash
• Neutral Sentiment: Industry analysts argue semiconductor oversupply is unlikely before 2028 because the infrastructure required for excess capacity is not yet in place, supporting long-term equipment demand but not providing a company-specific catalyst. Semiconductor oversupply outlook
• Negative Sentiment: Despite the earnings beat and higher guidance, KLAC faced pressure after results as investors focused on uncertainty around the outlook. Its roughly 50 forward earnings multiple also leaves the stock vulnerable if AI-related growth expectations moderate. KLA earnings and stock reaction

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.