Kulicke and Soffa Industries Inc. (NASDAQ: KLIC): Street Finally Waking Up


    Whale Rock Capital Management LLC recently announced the acquisition of new stake in Kulicke and Soffa Industries Inc. (NASDAQ:KLIC). The institutional investor has increased its shareholding in the Technology company by 15.33% to 3.96 million shares with purchase of 0.53 million shares. This fresh investment now brings its stake to 6.34% valued currently at $82.45 million. In addition, ARGA Investment Management LP raised its holdings by 0.66 million to 1.99 million shares. And American Century Investment Manag. has lifted its position by 26.06% or 0.31 million shares – to 1.51 million shares.

    With over 0.37 million Kulicke and Soffa Industries Inc. (KLIC) shares trading Friday and a closing price of $22.50 on the day, the dollar volume was approximately $8.37 million. The shares have shown a negative weekly performance of -1.14% and its price on 07/17/20 gained nearly 2.23%. Currently, there are 63.68M common shares owned by the public and among those 60.91M shares have been available to trade.

    An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 4 analysts who have offered their price forecasts for KLIC have a consensus price objective of $30.75. The analysts have set the share’s price value over the next 12 months at a high of $40.00 and a low of $24.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Kulicke and Soffa Industries Inc. stock is 2.20 for the next 12 months. The average price target is 26.83% above its last price level and an upside to the estimated low will see the stock gain 6.25% over that period. But an upside of 43.75% will see the stock hit the forecast high price target while mean target price for the stock is $29.50.

    Insiders at the company have transacted a total of 44 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 42 of these insider trades were purchases, accounting for 447,373 shares. Insider sales of the common stock occurred on 2 occasions, with total insider shares sold totaling 3,000 shares.

    The top 3 mutual fund holders in Kulicke and Soffa Industries Inc. are iShares Core S&P Small Cap ETF, Principal Investors – Small Mid C, and DFA US Small Cap Value Portfolio. iShares Core S&P Small Cap ETF owns 3.85 million shares of the company’s stock, all valued at over $80.16 million. Principal Investors – Small Mid C sold 13617.0 shares to see its total holdings shrink to 1.68 million shares valued at over $34.9 million and representing 2.68% of the shares outstanding. DFA US Small Cap Value Portfolio sold -0.22 million shares to bring its total holdings to over 1.59 million shares at a value of $33.03 million. DFA US Small Cap Value Portfolio now owns shares totaling to 2.54% of the shares outstanding.

    Shares of Kulicke and Soffa Industries Inc. (NASDAQ: KLIC) opened at $22.11, up $0.1 from a prior closing price of $22.01. However, the script later closed the day at $22.50, up 2.23%. The company’s stock has a 5-day price change of -1.14% and -6.83% over the past three months. KLIC shares are trading -17.28% year to date (YTD), with the 12-month market performance up to 0.94% higher. It has a 12-month low price of $16.91 and touched a high of $28.66 over the same period. Currently, 0.37 million shares have been traded, compared to an average intraday trading volume of 583.74K shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 2.64%, 0.56%, and -5.59% respectively.

    Institutional ownership of Kulicke and Soffa Industries Inc. (NASDAQ: KLIC) shares accounts for 91.20% of the company’s 63.68M shares outstanding. Mutual fund holders own 46.80%, while other institutional holders and individual stakeholders account for 9.83% and 42.45% respectively.

    It has a market capitalization of $1.37B and a beta (3y monthly) value of 1.24. The stock’s trailing 12-month PE ratio is 38.27, while the earnings-per-share (ttm) stands at $0.59. The company has a PEG of 1.91 and a Quick Ratio of 3.30 with the debt-to-equity ratio at 0.15. Price movements for the stock have been influenced by the stock’s volatility, which stands at 3.27% over the week and 3.83% over the month.

    Analysts forecast that Kulicke and Soffa Industries Inc. (KLIC) will achieve an EPS of $0.14 for the current quarter, $0.19 for the next quarter and $1.66 for 2021. The lowest estimate earnings-per-share for the quarter is $0.12 while analysts give the company a high EPS estimate of $0.16. Comparatively, EPS for the current quarter was $0.06 a year ago. Earnings per share for the fiscal year are expected to decrease by -82.50%, and 116.23% over the next financial year. EPS should grow at an annualized rate of 20.00% over the next five years, compared to -13.20% over the past 5-year period.

    If you are looking to buy this stock, then you may note that the average analyst recommendation by 4 brokerage firm advisors rate Kulicke and Soffa Industries Inc. (KLIC) as a “Moderate Buy” at a consensus score of 2.20. Specifically, 3 Wall Street analysts polled rate the stock as a buy, while 1 of the 4 advise that investors “hold,” and 0 rated it as a “Sell.”

    Looking at the support for the KLIC, a number of firms have released research notes about the stock. Cowen stated their Market Perform rating for the stock in a research note on January 31, 2020, with the firm’s price target at $25-$27. DA Davidson coverage for the Kulicke and Soffa Industries Inc. (KLIC) stock in a research note released on November 21, 2019 offered a Buy rating with a price target of. Cowen was of a view on November 15, 2019 that the stock is Market Perform, while DA Davidson gave the stock Neutral rating on July 08, 2019, issuing a price target of. B. Riley FBR on their part issued Buy rating on November 20, 2018.


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