KLA (NASDAQ:KLAC) Shares Gap Down – Should You Sell?

KLA Co. (NASDAQ:KLAC) shares gapped down prior to trading 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.

Analysts Set New Price Targets

Several equities analysts have recently weighed in on the company. TD Cowen reduced their price target on KLA from $760.00 to $725.00 and set a “hold” rating for the company in a research report on Thursday, October 31st. UBS Group decreased their target price on shares of KLA from $900.00 to $765.00 and set a “neutral” rating on the stock in a report on Thursday, September 12th. Needham & Company LLC restated a “hold” rating on shares of KLA in a research report on Thursday, October 31st. Wells Fargo & Company dropped their price objective on KLA from $950.00 to $870.00 and set an “overweight” rating for the company in a research note on Thursday, October 3rd. Finally, Cantor Fitzgerald reiterated a “neutral” rating and set a $925.00 price target on shares of KLA in a research report on Tuesday, October 8th. Eight investment analysts have rated the stock with a hold rating and fifteen have assigned a buy rating to the company’s stock. According to MarketBeat.com, KLA presently has a consensus rating of “Moderate Buy” and a consensus target price of $802.90.

KLA Trading Down 3.8 %

The company has a market capitalization of $83.03 billion, a P/E ratio of 28.47, a P/E/G ratio of 1.36 and a beta of 1.29. 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 stock’s 50 day moving average is $722.79 and its 200-day moving average is $763.28.

KLA (NASDAQ:KLAC) last released its quarterly earnings data on Wednesday, October 30th. The semiconductor company reported $7.33 earnings per share (EPS) for the quarter, beating 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 business had revenue of $2.84 billion for the quarter, compared to analysts’ expectations of $2.75 billion. During the same period in the prior year, the firm posted $5.74 EPS. The firm’s quarterly revenue was up 18.5% on a year-over-year basis. As a group, equities research analysts anticipate that KLA Co. will post 30.91 earnings per share for the current year.

KLA Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, December 3rd. Stockholders of record on Monday, November 18th will be paid a $1.70 dividend. The ex-dividend date of this dividend is Monday, November 18th. This is a positive change from KLA’s previous quarterly dividend of $1.45. This represents a $6.80 dividend on an annualized basis and a dividend yield of 1.10%. KLA’s payout ratio is currently 26.48%.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of the company. Cedar Wealth Management LLC grew its holdings in KLA by 77.3% during the first quarter. Cedar Wealth Management LLC now owns 39 shares of the semiconductor company’s stock valued at $27,000 after purchasing an additional 17 shares during the period. Family Firm Inc. purchased a new position in shares of KLA in the second quarter valued at about $30,000. Capital Performance Advisors LLP purchased a new stake in shares of KLA during the third quarter worth about $38,000. 1620 Investment Advisors Inc. bought a new stake in KLA during the 2nd quarter valued at approximately $44,000. Finally, LRI Investments LLC bought a new stake in KLA during the 1st quarter valued at approximately $45,000. 86.65% of the stock is 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.