Investors Buy High Volume of KLA Put Options (NASDAQ:KLAC)

KLA Corporation (NASDAQ:KLAC) was the target of some unusual options trading activity on Friday. Investors purchased 10,731 put options on the company. This is an increase of 514% compared to the average volume of 1,748 put options.

KLA Stock Down 15.2%

Shares of KLAC opened at $1,427.94 on Friday. The stock’s 50-day moving average price is $1,325.70 and its two-hundred day moving average price is $1,125.21. KLA has a 12 month low of $551.33 and a 12 month high of $1,693.35. The company has a market capitalization of $187.62 billion, a PE ratio of 41.55, a PEG ratio of 4.03 and a beta of 1.45. The company has a current ratio of 2.69, a quick ratio of 1.88 and a debt-to-equity ratio of 1.18.

KLA (NASDAQ:KLAC) last posted its quarterly earnings data on Thursday, January 29th. The semiconductor company reported $8.85 EPS for the quarter, topping analysts’ consensus estimates of $8.75 by $0.10. The company had revenue of $3.30 billion for the quarter, compared to analyst estimates of $3.25 billion. KLA had a return on equity of 103.06% and a net margin of 35.76%.The firm’s quarterly revenue was up 7.1% on a year-over-year basis. During the same period in the previous year, the firm earned $8.20 earnings per share. On average, analysts anticipate that KLA will post 31.59 EPS for the current year.

KLA Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, December 2nd. Investors of record on Monday, November 17th were paid a dividend of $1.90 per share. This represents a $7.60 dividend on an annualized basis and a yield of 0.5%. The ex-dividend date of this dividend was Monday, November 17th. KLA’s dividend payout ratio (DPR) is currently 23.86%.

Analyst Ratings Changes

Several equities research analysts recently issued reports on KLAC shares. Citigroup reaffirmed a “buy” rating on shares of KLA in a report on Friday. TD Cowen raised shares of KLA from a “hold” rating to a “buy” rating and boosted their target price for the stock from $1,300.00 to $1,800.00 in a research note on Tuesday, January 13th. Wells Fargo & Company upped their price target on shares of KLA from $1,600.00 to $1,900.00 and gave the stock an “overweight” rating in a report on Friday. Deutsche Bank Aktiengesellschaft set a $1,630.00 price objective on KLA in a report on Friday. Finally, Needham & Company LLC reaffirmed a “buy” rating and issued a $1,800.00 target price on shares of KLA in a report on Friday. One equities research analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating and nine have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of $1,565.21.

Key Stories Impacting KLA

Here are the key news stories impacting KLA this week:

• Positive Sentiment: KLA beat expectations for Q2: revenue of $3.30B and non‑GAAP EPS $8.85, topping consensus and showing year‑over‑year growth. Reuters: KLA Corp beats quarterly results
• Positive Sentiment: Strong cash flow and capital returns: management reported robust operating cash flow and meaningful share repurchases/dividends that support shareholder returns. PR Newswire: KLA fiscal Q2 results
• Positive Sentiment: Analyst support remains, with recent price‑target lifts and buy/overweight calls (Needham, Berenberg, RBC), leaving upside per some models. The Fly: RBC raises KLA PT MarketScreener: Berenberg raises PT Benzinga: Needham reaffirmation
• Neutral Sentiment: Management sees advanced‑packaging revenue rising mid‑to‑high teens in 2026, driven by AI demand for process‑control tools — a structural tailwind but timing is variable. Seeking Alpha: Advanced packaging outlook
• Neutral Sentiment: Quarter materials, slide deck and call transcript are available for deeper read; they show strength but also careful wording on near‑term demand. Seeking Alpha: Earnings call transcript
• Negative Sentiment: Forward guide disappointed some: Q3 EPS range (8.30–9.86) and revenue range ($3.2B–$3.5B) leave the midpoint roughly in line to slightly below Street EPS expectations and include a wide revenue band — investors sold the stock on guidance uncertainty. Yahoo Finance: Q2 highlights & guidance
• Negative Sentiment: Market worries about the WFE (wafer‑fab equipment) outlook and timing of customer ramps—analysts flagged caution, which pressured the stock despite the beat. Seeking Alpha: WFE outlook concerns
• Negative Sentiment: Valuation concerns: at its elevated multiple, some analysts and investors see limited near‑term upside, tempering reaction to the beat. Benzinga: Valuation offsets strengths
• Negative Sentiment: Unusually large put buying and elevated insider/institutional selling flagged on trading screens — options flow and visible sell pressure likely amplified the intraday decline. Quiver Quant: puts, insider sales and data

Insider Activity at KLA

In related news, CFO Bren D. Higgins sold 2,254 shares of the company’s stock in a transaction on Tuesday, December 16th. The stock was sold at an average price of $1,237.01, for a total transaction of $2,788,220.54. Following the completion of the sale, the chief financial officer directly owned 32,154 shares in the company, valued at $39,774,819.54. This represents a 6.55% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, CEO Richard P. Wallace sold 10,803 shares of the firm’s stock in a transaction dated Tuesday, November 11th. The shares were sold at an average price of $1,203.10, for a total value of $12,997,089.30. Following the completion of the sale, the chief executive officer directly owned 81,211 shares in the company, valued at $97,704,954.10. This trade represents a 11.74% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 91.48% of the stock is owned by insiders.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the business. Ulland Investment Advisors LLC bought a new stake in shares of KLA during the 2nd quarter valued at about $32,000. Sentry Investment Management LLC acquired a new position in KLA in the second quarter valued at approximately $36,000. Arlington Trust Co LLC boosted its holdings in shares of KLA by 125.0% during the 3rd quarter. Arlington Trust Co LLC now owns 36 shares of the semiconductor company’s stock worth $39,000 after buying an additional 20 shares in the last quarter. Triumph Capital Management acquired a new stake in shares of KLA during the 3rd quarter worth approximately $40,000. Finally, Steigerwald Gordon & Koch Inc. bought a new stake in shares of KLA in the 3rd quarter valued at $43,000. 86.65% of the stock is owned by institutional investors.

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.