Traders Buy Large Volume of Put Options on KLA (NASDAQ:KLAC)

KLA Corporation (NASDAQ:KLAC) was the target of unusually large options trading on Tuesday. Stock investors bought 22,007 put options on the stock. This represents an increase of approximately 112% compared to the average daily volume of 10,362 put options.

KLA Stock Performance

Shares of KLAC stock traded down $11.33 during mid-day trading on Tuesday, reaching $194.43. 3,995,292 shares of the company’s stock traded hands, compared to its average volume of 11,523,151. The firm has a 50 day moving average price of $223.48 and a two-hundred day moving average price of $185.37. The company has a debt-to-equity ratio of 0.93, a quick ratio of 2.03 and a current ratio of 2.88. KLA has a 12 month low of $83.22 and a 12 month high of $307.37. The firm has a market capitalization of $254.03 billion, a PE ratio of 53.09, a price-to-earnings-growth ratio of 1.56 and a beta of 1.45.

KLA (NASDAQ:KLAC) last issued its earnings results on Tuesday, July 28th. The semiconductor company reported $1.05 earnings per share for the quarter, topping the consensus estimate of $1.00 by $0.05. The company 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%. KLA’s quarterly revenue was up 15.2% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.94 EPS. KLA has set its Q1 2027 guidance at 1.060-1.260 EPS. On average, research analysts forecast that KLA will post 5.42 EPS for the current year.

KLA Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 1st. Shareholders of record on Monday, August 17th will be given a dividend of $0.23 per share. This represents a $0.92 dividend on an annualized basis and a yield of 0.5%. This is a positive change from KLA’s previous quarterly dividend of $0.23. The ex-dividend date is Monday, August 17th. KLA’s dividend payout ratio (DPR) is presently 25.07%.

Insider Transactions at KLA

In other KLA news, EVP Brian Lorig sold 59,586 shares of the firm’s stock in a transaction on Thursday, August 13th. The shares were sold at an average price of $208.13, for a total value of $12,401,634.18. Following the completion of the transaction, the executive vice president directly owned 77,681 shares of the company’s stock, valued at $16,167,746.53. This trade represents a 43.41% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, EVP Mary Beth Wilkinson sold 13,802 shares of KLA stock in a transaction dated Wednesday, August 5th. The shares were sold at an average price of $195.50, for a total value of $2,698,291.00. Following the sale, the executive vice president owned 22,110 shares of the company’s stock, valued at approximately $4,322,505. This trade represents a 38.43% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 258,533 shares of company stock valued at $55,977,470. Company insiders own 91.48% of the company’s stock.

Institutional Investors Weigh In On KLA

Several large investors have recently added to or reduced their stakes in KLAC. McIlrath & Eck LLC grew its position in shares of KLA by 6.8% during the 1st quarter. McIlrath & Eck LLC now owns 94 shares of the semiconductor company’s stock worth $139,000 after buying an additional 6 shares in the last quarter. Motco raised its holdings in KLA by 1.8% in the fourth quarter. Motco now owns 405 shares of the semiconductor company’s stock worth $492,000 after purchasing an additional 7 shares in the last quarter. Nemes Rush Group LLC lifted its position in shares of 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 buying an additional 7 shares during the last quarter. SouthState Bank Corp boosted its holdings in shares of KLA by 6.7% in the 4th quarter. SouthState Bank Corp now owns 111 shares of the semiconductor company’s stock valued at $135,000 after buying an additional 7 shares in the last quarter. Finally, West Michigan Advisors LLC grew its position in shares of KLA by 2.7% in the 4th quarter. West Michigan Advisors LLC now owns 305 shares of the semiconductor company’s stock worth $371,000 after buying an additional 8 shares during the last quarter. 86.65% of the stock is owned by hedge funds and other institutional investors.

KLA News Summary

Here are the key news stories impacting KLA this week:

• Positive Sentiment: Cantor Fitzgerald maintained a highly bullish outlook on KLA Corporation (KLAC), citing potential for approximately 60% upside from the price referenced in the article. The analyst’s $325 price target reflects confidence in KLA’s dominant position in semiconductor process-control equipment and continued industry growth. KLA Corporation Had a Tough Month: 60% Returns Will Come According to This Wall Street Stalwart
• Positive Sentiment: The article notes that KLA has delivered five consecutive quarterly earnings beats, supporting the case that execution and demand remain solid even after the stock’s recent weakness. KLA previously reported year-over-year revenue growth and earnings above consensus expectations. KLA Corporation Had a Tough Month: 60% Returns Will Come According to This Wall Street Stalwart
• Neutral Sentiment: The supplied coverage does not identify a new negative operational development at KLA Corporation (KLAC). However, the stock is trading below its 50-day moving average, indicating near-term investor caution, while remaining above its 200-day moving average.

Analyst Upgrades and Downgrades

KLAC has been the subject of a number of research reports. The Goldman Sachs Group reaffirmed a “neutral” rating and issued a $230.00 price objective on shares of KLA in a research note on Tuesday, July 28th. Weiss Ratings reaffirmed a “buy (b-)” rating on shares of KLA in a research note on Friday, July 31st. Bank of America upped their target price on KLA from $210.00 to $317.00 and gave the stock a “buy” rating in a report on Tuesday, June 23rd. Wells Fargo & Company set a $245.00 price target on shares of KLA and gave the stock an “overweight” rating in a research note on Wednesday, July 29th. Finally, JPMorgan Chase & Co. boosted their target price on KLA from $200.00 to $238.00 and gave the stock an “overweight” rating in a report on Wednesday, July 29th. One investment analyst has rated the stock with a Strong Buy rating, nineteen have given a Buy rating and nine have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $223.70.

KLA Company Profile

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.