Zacks Investment Research upgraded shares of KLA-Tencor Corp. (NASDAQ:KLAC) from a hold rating to a buy rating in a report released on Wednesday morning. Zacks Investment Research currently has $78.00 target price on the stock.
According to Zacks, “KLA is one of the leading suppliers of inspection and metrology products and services. The biggest positive for the company at the moment is Lam Research’s agreement to acquire KLA in a cash and stock deal worth $5.08 billion. KLA’s comprehensive product line, market position, cost reduction initiatives and strong balance sheet will generate growth whenever cyclical pressures permit and make it an attractive target for Lam. While its memory exposure has increased over time, this is Lam’s area of strength. On the other hand, Lam is weaker in foundry and logic, which are areas of KLA’s strength. However, the company has a concentrated customer base, and near-term WFE spending does not play to its strengths (as a standalone company).The merger combines to leading equipment vendors, so until regulators approve the deal, uncertainties persist.”
KLAC has been the topic of several other research reports. JPMorgan Chase & Co. upped their price target on KLA-Tencor Corp. from $79.50 to $84.50 and gave the company an overweight rating in a research note on Friday, July 29th. Credit Suisse Group AG reiterated a hold rating and issued a $82.00 price objective on shares of KLA-Tencor Corp. in a report on Friday, July 29th. Susquehanna reiterated a neutral rating on shares of KLA-Tencor Corp. in a report on Saturday, August 13th. Pacific Crest reiterated a hold rating on shares of KLA-Tencor Corp. in a report on Friday, July 29th. Finally, Cowen and Company upped their price objective on KLA-Tencor Corp. from $70.00 to $79.00 and gave the company a market perform rating in a report on Friday, July 29th. Nine analysts have rated the stock with a hold rating, three have issued a buy rating and one has given a strong buy rating to the company’s stock. KLA-Tencor Corp. presently has an average rating of Hold and an average target price of $73.46.
Shares of KLA-Tencor Corp. (NASDAQ:KLAC) opened at 69.71 on Wednesday. The firm’s 50-day moving average price is $69.43 and its 200-day moving average price is $71.78. The firm has a market capitalization of $10.87 billion, a price-to-earnings ratio of 15.53 and a beta of 1.75. KLA-Tencor Corp. has a 12 month low of $50.53 and a 12 month high of $77.85.
KLA-Tencor Corp. (NASDAQ:KLAC) last issued its quarterly earnings results on Thursday, July 28th. The company reported $1.77 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.42 by $0.35. KLA-Tencor Corp. had a return on equity of 159.94% and a net margin of 23.60%. The business had revenue of $919.17 million for the quarter, compared to analyst estimates of $842.10 million. During the same quarter in the prior year, the firm posted $0.99 earnings per share. The firm’s revenue for the quarter was up 21.5% compared to the same quarter last year. On average, equities analysts anticipate that KLA-Tencor Corp. will post $4.88 earnings per share for the current year.
In related news, CFO Bren D. Higgins sold 363 shares of the stock in a transaction dated Tuesday, July 5th. The stock was sold at an average price of $72.23, for a total transaction of $26,219.49. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Corporate insiders own 0.26% of the company’s stock.
Hedge funds and other institutional investors have recently modified their holdings of the stock. Wealth Architects LLC boosted its position in shares of KLA-Tencor Corp. by 0.3% in the second quarter. Wealth Architects LLC now owns 4,766 shares of the company’s stock valued at $349,000 after buying an additional 12 shares during the period. Commonwealth Equity Services Inc boosted its position in shares of KLA-Tencor Corp. by 0.5% in the second quarter. Commonwealth Equity Services Inc now owns 2,972 shares of the company’s stock valued at $218,000 after buying an additional 14 shares during the period. Wetherby Asset Management Inc. boosted its position in shares of KLA-Tencor Corp. by 0.8% in the second quarter. Wetherby Asset Management Inc. now owns 2,829 shares of the company’s stock valued at $208,000 after buying an additional 22 shares during the period. M&T Bank Corp boosted its position in shares of KLA-Tencor Corp. by 0.3% in the second quarter. M&T Bank Corp now owns 10,528 shares of the company’s stock valued at $771,000 after buying an additional 33 shares during the period. Finally, First Midwest Bank Trust Division boosted its position in shares of KLA-Tencor Corp. by 0.4% in the second quarter. First Midwest Bank Trust Division now owns 11,457 shares of the company’s stock valued at $839,000 after buying an additional 50 shares during the period. 85.80% of the stock is owned by hedge funds and other institutional investors.
KLA-Tencor Corp. Company Profile
KLA-Tencor Corporation is a supplier of process control and yield management solutions for the semiconductor and related nanoelectronics industries. The Company’s products are also used in various other industries, including the light emitting diode (LED) and data storage industries, as well as general materials research.
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