KLA (NASDAQ:KLAC) Shares Down 6.3% – What’s Next?

KLA Corporation (NASDAQ:KLAC)’s stock price fell 6.3% during trading on Wednesday . The stock traded as low as $274.06 and last traded at $282.6920. 2,388,207 shares traded hands during mid-day trading, a decline of 79% from the average daily volume of 11,252,064 shares. The stock had previously closed at $301.71.

KLA News Roundup

Here are the key news stories impacting KLA this week:

• Positive Sentiment: Brokerages still see KLA as a fundamentally solid name, with an average rating of “Moderate Buy” and no sell ratings reported, suggesting Wall Street’s long-term view remains constructive.
• Positive Sentiment: Recent commentary around an AI-driven semiconductor spending cycle remains favorable for KLA, as rising chip-investment and new fab projects support demand for semiconductor equipment. Article: KLA Corporation Stock (KLAC) Opinions on AI-Driven Semiconductor Cycle
• Positive Sentiment: KLA’s revenue growth and recent earnings strength continue to support the bull case; the company recently posted about 11.5% year-over-year revenue growth and beat estimates in its latest quarterly report.
• Neutral Sentiment: A recent article noted KLA’s stock had fallen sharply relative to a model-based valuation estimate, but this is more a valuation commentary than a direct catalyst. Article: A Look at KLA Corp (KLAC) After 11.5% Decline — GF Value $100.17 vs Price $235.55
• Negative Sentiment: CEO Richard P. Wallace sold 4,512 shares recently, and insider selling can sometimes pressure sentiment even when the sale is relatively small versus the company’s size.
• Negative Sentiment: KLAC has been one of the bigger drags on semiconductor ETFs and the Nasdaq-100, reflecting a broad sector selloff that has pushed the stock lower despite otherwise favorable long-term AI and capital-spending trends.

Analyst Ratings Changes

Several research analysts have recently issued reports on the company. New Street Research upped their price objective on KLA from $146.00 to $177.00 and gave the stock a “neutral” rating in a research report on Wednesday, April 29th. Argus upped their price target on KLA from $175.00 to $195.00 and gave the company a “buy” rating in a report on Friday, May 1st. Royal Bank Of Canada increased their price target on shares of KLA from $160.00 to $170.00 and gave the company a “sector perform” rating in a research note on Thursday, April 30th. Wells Fargo & Company reissued an “overweight” rating and set a $305.00 price objective (up from $210.00) on shares of KLA in a report on Monday, June 22nd. Finally, Citigroup restated a “buy” rating on shares of KLA in a research report on Wednesday, June 17th. Twenty equities research analysts have rated the stock with a Buy rating and ten have given a Hold rating to the company’s stock. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $277.34.

KLA Stock Down 11.5%

The business’s fifty day moving average price is $210.89 and its 200 day moving average price is $169.24. The company has a quick ratio of 2.11, a current ratio of 3.03 and a debt-to-equity ratio of 1.01. The firm has a market capitalization of $307.69 billion, a PE ratio of 66.67, a PEG ratio of 2.95 and a beta of 1.41.

KLA (NASDAQ:KLAC) last announced its earnings results on Wednesday, April 29th. The semiconductor company reported $9.40 earnings per share for the quarter, topping the consensus estimate of $0.92 by $8.48. The business had revenue of $3.42 billion during the quarter, compared to the consensus estimate of $3.37 billion. KLA had a net margin of 35.66% and a return on equity of 91.89%. The business’s quarterly revenue was up 11.5% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.84 earnings per share. KLA has set its Q4 2026 guidance at 8.870-10.870 EPS. On average, equities research analysts forecast that KLA Corporation will post 3.71 earnings per share for the current fiscal year.

KLA Cuts Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, June 2nd. Shareholders of record on Monday, May 18th were paid a $0.23 dividend. This represents a $0.92 annualized dividend and a dividend yield of 0.4%. The ex-dividend date was Monday, May 18th. KLA’s dividend payout ratio (DPR) is 26.06%.

KLA declared that its board has initiated a share buyback plan on Thursday, March 12th that authorizes the company to repurchase $7.00 billion in outstanding shares. This repurchase authorization authorizes the semiconductor company to reacquire up to 3.6% of its shares through open market purchases. Shares repurchase plans are typically an indication that the company’s management believes its stock is undervalued.

Insider Activity at KLA

In related news, CEO Richard P. Wallace sold 45,120 shares of the stock in a transaction 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 completion of the sale, 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 ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 91.48% of the stock is owned by company insiders.

Hedge Funds Weigh In On KLA

Several institutional investors have recently bought and sold shares of KLAC. Harbor Investment Advisory LLC boosted its holdings in shares of KLA by 4,023.1% in the fourth quarter. Harbor Investment Advisory LLC now owns 1,072 shares of the semiconductor company’s stock valued at $1,303,000 after acquiring an additional 1,046 shares in the last quarter. Farther Finance Advisors LLC raised its holdings in KLA by 86.6% during the fourth quarter. Farther Finance Advisors LLC now owns 4,063 shares of the semiconductor company’s stock worth $4,937,000 after purchasing an additional 1,886 shares in the last quarter. Russell Investments Group Ltd. lifted its position in KLA by 14.8% in the third quarter. Russell Investments Group Ltd. now owns 69,563 shares of the semiconductor company’s stock valued at $74,898,000 after purchasing an additional 8,973 shares during the period. BOKF NA lifted its position in KLA by 16.6% in the third quarter. BOKF NA now owns 8,534 shares of the semiconductor company’s stock valued at $9,205,000 after purchasing an additional 1,218 shares during the period. Finally, CSM Advisors LLC boosted its holdings in KLA by 868.2% in the 3rd quarter. CSM Advisors LLC now owns 2,924 shares of the semiconductor company’s stock valued at $3,154,000 after purchasing an additional 2,622 shares in the last quarter. 86.65% of the stock is owned by institutional investors and hedge funds.

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.