KLA (NASDAQ:KLAC) Shares Gap Down - Here's Why

KLA Co. (NASDAQ:KLAC - Get Free Report) 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

A number of research firms have commented on KLAC. UBS Group reduced their target price on KLA from $900.00 to $765.00 and set a "neutral" rating on the stock in a report on Thursday, September 12th. Evercore ISI lifted their price objective on shares of KLA from $800.00 to $900.00 and gave the stock an "outperform" rating in a report on Thursday, July 25th. Cantor Fitzgerald reissued a "neutral" rating and set a $925.00 target price on shares of KLA in a report on Tuesday, October 8th. Argus lifted their price target on shares of KLA from $800.00 to $875.00 and gave the company a "buy" rating in a report on Friday, July 26th. Finally, 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. Eight research analysts have rated the stock with a hold rating and fifteen have issued a buy rating to the company's stock. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $802.90.

KLA Trading Down 4.7 %

The company has a fifty day moving average price of $722.79 and a 200-day moving average price of $763.28. The firm has a market capitalization of $82.19 billion, a price-to-earnings ratio of 28.47, a price-to-earnings-growth ratio of 1.36 and a beta of 1.29. The company has a current ratio of 2.13, a quick ratio of 1.48 and a debt-to-equity ratio of 1.65.

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

KLA Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, December 3rd. Shareholders of record on Monday, November 18th will be given a $1.70 dividend. The ex-dividend date is Monday, November 18th. This represents a $6.80 dividend on an annualized basis and a dividend yield of 1.11%. This is a boost from KLA's previous quarterly dividend of $1.45. KLA's payout ratio is currently 26.48%.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the stock. Avantax Advisory Services Inc. lifted its stake in shares of KLA by 2.2% in the first quarter. Avantax Advisory Services Inc. now owns 1,424 shares of the semiconductor company's stock worth $995,000 after buying an additional 31 shares during the last quarter. Kingsview Wealth Management LLC grew its position in shares of KLA by 6.3% in the first quarter. Kingsview Wealth Management LLC now owns 4,214 shares of the semiconductor company's stock valued at $2,944,000 after purchasing an additional 251 shares during the last quarter. Trillium Asset Management LLC acquired a new position in shares of KLA during the 1st quarter worth about $204,000. Dorsey & Whitney Trust CO LLC lifted its position in shares of KLA by 5.4% during the 1st quarter. Dorsey & Whitney Trust CO LLC now owns 994 shares of the semiconductor company's stock worth $694,000 after purchasing an additional 51 shares during the last quarter. Finally, Alera Investment Advisors LLC bought a new stake in KLA during the 1st quarter valued at approximately $224,000. Institutional investors and hedge funds own 86.65% of the company's stock.

KLA Company Profile

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.