KLA (NASDAQ:KLAC) Shares Gap Down – Here’s Why

KLA Co. (NASDAQ:KLAC) shares gapped down before the market opened on Friday . The stock had previously closed at $645.00, but opened at $620.53. KLA shares last traded at $625.53, with a volume of 270,930 shares.

Analyst Upgrades and Downgrades

A number of research analysts have weighed in on the stock. Citigroup dropped their price objective on shares of KLA from $960.00 to $900.00 and set a “buy” rating on the stock in a research note on Monday, September 16th. Needham & Company LLC reaffirmed a “hold” rating on shares of KLA in a research report on Thursday, October 31st. Cantor Fitzgerald reissued a “neutral” rating and set a $925.00 price objective on shares of KLA in a report on Tuesday, October 8th. TD Cowen dropped their target price on KLA from $760.00 to $725.00 and set a “hold” rating on the stock in a report on Thursday, October 31st. Finally, Deutsche Bank Aktiengesellschaft decreased their price target on KLA from $890.00 to $750.00 and set a “buy” rating for the company in a report on Thursday, October 31st. Eight research analysts have rated the stock with a hold rating and fifteen have assigned a buy rating to the company’s stock. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $802.90.

KLA Trading Down 4.7 %

The company has a debt-to-equity ratio of 1.65, a current ratio of 2.13 and a quick ratio of 1.48. The firm has a fifty day simple moving average of $721.02 and a two-hundred day simple moving average of $762.59. The firm has a market capitalization of $82.19 billion, a P/E ratio of 28.06, a price-to-earnings-growth ratio of 1.36 and a beta of 1.29.

KLA (NASDAQ:KLAC) last posted its quarterly earnings results on Wednesday, October 30th. The semiconductor company reported $7.33 earnings per share for the quarter, topping the consensus estimate of $7.03 by $0.30. KLA had a return on equity of 105.16% and a net margin of 28.92%. The company had revenue of $2.84 billion during the quarter, compared to the consensus estimate of $2.75 billion. During the same quarter in the prior year, the company earned $5.74 EPS. The firm’s quarterly revenue was up 18.5% compared to the same quarter last year. On average, equities research analysts anticipate that KLA Co. will post 30.91 earnings per share for the current fiscal year.

KLA Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, December 3rd. Stockholders of record on Monday, November 18th will be given a $1.70 dividend. The ex-dividend date of this dividend is Monday, November 18th. This represents a $6.80 annualized dividend and a dividend yield of 1.11%. This is a positive change from KLA’s previous quarterly dividend of $1.45. KLA’s payout ratio is 31.05%.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the business. Cedar Wealth Management LLC boosted its holdings in shares of KLA by 77.3% in the first quarter. Cedar Wealth Management LLC now owns 39 shares of the semiconductor company’s stock worth $27,000 after acquiring an additional 17 shares during the period. Legacy Investment Solutions LLC bought a new position in KLA in the 3rd quarter worth about $29,000. Family Firm Inc. purchased a new position in KLA during the 2nd quarter valued at about $30,000. Groupama Asset Managment increased its position in shares of KLA by 82.3% during the third quarter. Groupama Asset Managment now owns 4,515 shares of the semiconductor company’s stock valued at $35,000 after buying an additional 2,038 shares during the period. Finally, Capital Performance Advisors LLP purchased a new stake in shares of KLA in the third quarter worth about $38,000. 86.65% of the stock is currently owned by hedge funds and other institutional investors.

About KLA

KLA Corporation, together with its subsidiaries, engages in the design, manufacture, and marketing of process control, process-enabling, and yield management solutions for the semiconductor and related electronics industries worldwide. It operates through three segments: Semiconductor Process Control; Specialty Semiconductor Process; and PCB and Component Inspection.