KLA-Tencor (NASDAQ:KLAC) Downgraded by Zacks Investment Research

KLA-Tencor (NASDAQ:KLAC) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report issued on Monday, January 29th.

According to Zacks, “KLA offers a complete yield management solutions which includes hardware, software and services. The company delivered strong second-quarter results driven by strong demand environment, customer acceptance of key products, growth in China and operational efficiencies. The addittion of new capacity by Wafer manufacturers and adoption of more complex architectures by IC customers are driving demand for the company’s new bare wafer products. KLA’s cost reduction initiatives and strong balance sheet are positives amid cyclical pressures. Though the stiff competition and concentrated customer base increases execution risk, the rising process control spending across foundry, memory and logic players through 2018 and beyond will enable KLA to deliver stronger results. However, the stock has underperformed the industry it belongs to on a year-to-date basis.”

Other analysts have also recently issued research reports about the company. Needham & Company LLC cut KLA-Tencor from a “strong-buy” rating to a “buy” rating and set a $130.00 price target on the stock. in a report on Monday, January 8th. Argus initiated coverage on KLA-Tencor in a report on Wednesday, November 29th. They issued a “buy” rating and a $125.00 price target on the stock. B. Riley reaffirmed a “buy” rating and issued a $129.00 price target (up previously from $120.00) on shares of KLA-Tencor in a report on Friday, October 27th. JPMorgan Chase & Co. reaffirmed a “buy” rating and issued a $136.00 price target on shares of KLA-Tencor in a report on Friday, October 27th. Finally, Stifel Nicolaus increased their price objective on KLA-Tencor from $106.00 to $114.00 and gave the company a “buy” rating in a research report on Wednesday, October 25th. One research analyst has rated the stock with a sell rating, six have assigned a hold rating and ten have issued a buy rating to the company. The company presently has a consensus rating of “Buy” and an average target price of $118.54.

Shares of KLA-Tencor (NASDAQ KLAC) opened at $103.91 on Monday. The stock has a market capitalization of $15,802.97, a PE ratio of 25.04 and a beta of 1.53. The company has a debt-to-equity ratio of 2.03, a quick ratio of 3.06 and a current ratio of 3.73. KLA-Tencor has a 1-year low of $86.36 and a 1-year high of $121.65.

KLA-Tencor (NASDAQ:KLAC) last issued its quarterly earnings data on Thursday, January 25th. The semiconductor company reported $1.97 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.73 by $0.24. The business had revenue of $975.82 million for the quarter, compared to analysts’ expectations of $968.00 million. KLA-Tencor had a return on equity of 85.81% and a net margin of 17.28%. The firm’s quarterly revenue was up 11.3% on a year-over-year basis. During the same quarter in the prior year, the firm posted $1.52 EPS. analysts expect that KLA-Tencor will post 7.71 earnings per share for the current fiscal year.

In other news, Chairman Edward W. Barnholt sold 10,914 shares of KLA-Tencor stock in a transaction that occurred on Thursday, November 16th. The stock was sold at an average price of $104.90, for a total value of $1,144,878.60. The sale was disclosed in a document filed with the SEC, which is available through this link. Also, insider Brian M. Trafas sold 1,120 shares of KLA-Tencor stock in a transaction that occurred on Friday, February 2nd. The stock was sold at an average price of $110.04, for a total value of $123,244.80. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 33,432 shares of company stock worth $3,631,602. 0.20% of the stock is owned by corporate insiders.

Several hedge funds have recently modified their holdings of the company. Navellier & Associates Inc grew its position in shares of KLA-Tencor by 1.2% in the 2nd quarter. Navellier & Associates Inc now owns 2,495 shares of the semiconductor company’s stock worth $228,000 after buying an additional 30 shares during the last quarter. Nordea Investment Management AB grew its position in shares of KLA-Tencor by 1.3% in the 2nd quarter. Nordea Investment Management AB now owns 6,586 shares of the semiconductor company’s stock worth $603,000 after buying an additional 85 shares during the last quarter. Intellectus Partners LLC grew its position in shares of KLA-Tencor by 2.1% in the 2nd quarter. Intellectus Partners LLC now owns 5,103 shares of the semiconductor company’s stock worth $467,000 after buying an additional 103 shares during the last quarter. Thrivent Financial For Lutherans grew its position in shares of KLA-Tencor by 3.3% in the 2nd quarter. Thrivent Financial For Lutherans now owns 5,920 shares of the semiconductor company’s stock worth $542,000 after buying an additional 190 shares during the last quarter. Finally, National Asset Management Inc. lifted its stake in shares of KLA-Tencor by 6.6% in the 2nd quarter. National Asset Management Inc. now owns 3,681 shares of the semiconductor company’s stock valued at $338,000 after purchasing an additional 227 shares during the period. Hedge funds and other institutional investors own 91.08% of the company’s stock.

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KLA-Tencor Company Profile

KLA-Tencor Corporation (KLA-Tencor) 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 a number of other high technology industries, including the light emitting diode (LED) and data storage industries, as well as general materials research.

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