Does Kulicke and Soffa Industries Inc. (KLIC) offer a good opportunity for investors?

Kulicke and Soffa Industries Inc. (NASDAQ: KLIC) stock jumped 1.20% on Friday to $48.18 against a previous-day closing price of $47.61. With 1.18 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.75 million shares. During the session, the Semiconductor Equipment & Materials company that operates in wider Technology sector, reached to the highest price of $48.68 whereas the lowest price it dropped to was $47.31. The 52-week range on KLIC shows that it touched its highest point at $75.29 and its lowest point at $37.35 during that stretch. It currently has a 1-year price target of $76.50. With its current market cap of 2.83 billion, KLIC has annualized dividend of $0.68 while the current yield stands at 1.41%. Beta for the stock currently stands at 1.35.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of KLIC was up-trending over the past week, with a rise of 0.79%, but this was up by 22.53% over a month. Three-month performance dropped to -1.21% while six-month performance fell -11.40%. The stock lost -10.41% in the past year, while it has lost -20.42% so far this year. A look at the trailing 12-month EPS for KLIC yields 7.85 with Next year EPS estimates of 6.16. For the next quarter, that number is 1.59. This implies an EPS growth rate of 600.30% for this year and -15.58% for next year. EPS is expected to grow by 20.00% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 53.20%.

Float and Shares Shorts:

At present, 61.48 million KLIC shares are outstanding with a float of 57.55 million shares on hand for trading. On Jul 14, 2022, short shares totaled 8.13 million, which was 13.76% higher than short shares on Jun 14, 2022. In addition to Dr. Fusen Ernie Chen as the firm’s Pres, CEO & Director, Mr. Lester A. Wong serves as its Exec. VP of Fin. & IT and CFO.

Institutional Ownership:

Through their ownership of 105.05% of KLIC’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 67.99% of KLIC, in contrast to 33.19% held by mutual funds. Shares owned by individuals account for 10.83%. As the largest shareholder in KLIC with 15.01% of the stake, BlackRock Fund Advisors holds 8,875,568 shares worth 8,875,568. A second-largest stockholder of KLIC, Capital Research & Management Co, holds 7,160,448 shares, controlling over 12.11% of the firm’s shares. The Vanguard Group, Inc. is the third largest shareholder in KLIC, holding 2,816,748 shares or 4.76% stake. With a 8.43% stake in KLIC, the American Funds Small Cap World Fu is the largest stakeholder. A total of 4,982,121 shares are owned by the mutual fund manager. The iShares Core S&P Small Cap ETF, which owns about 7.05% of KLIC stock, is the second-largest Mutual Fund holder. It holds 4,169,992 shares valued at 178.52 million. American Century Small Cap Value holds 3.17% of the stake in KLIC, owning 1,875,000 shares worth 80.27 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for KLIC since 5 analysts follow the stock currently. There are 2 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 3 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With KLIC analysts setting a high price target of $88.00 and a low target of $50.00, the average target price over the next 12 months is $71.50. Based on these targets, KLIC could surge 82.65% to reach the target high and rise by 3.78% to reach the target low. Reaching the average price target will result in a growth of 48.4% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. KLIC will report FY 2022 earnings on 11/15/2022. Analysts have provided yearly estimates in a range of $7.74 being high and $6.97 being low. For KLIC, this leads to a yearly average estimate of $7.24. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Kulicke and Soffa Industries Inc. surprised analysts by $0.48 when it reported $1.95 EPS against a consensus estimate of $1.47. The surprise factor in the prior quarter was $0.29. Based on analyst estimates, the high estimate for the next quarter is $1.79 and the low estimate is $1.51. The average estimate for the next quarter is thus $1.59.

Dividends & Yield:

In terms of dividends, KLIC has a current ratio of $0.68, which is $0.68 over the trailing 12-months, while a dividend of $0.47 is likely to be paid on average over the next five years. Dividend yield is another indicator that appeals to many investors, and KLIC currently yields $1.35. In the past year, KLIC’s dividend yield has been $1.35, but when looking at the stock over the past five years, its yield has been $1.5. Accordingly, KLIC has a current buyback yield of $6.99. This was $6.99 for the TTM, and it was $3.72 for the past five years.

Summary of Insider Activity:

Insiders traded KLIC stock several times over the past three months with 6 Buys and 1 Sells. In these transactions, 6,024 shares were bought while 5,000 shares were sold. The number of buy transactions has increased to 44 while that of sell transactions has risen to 18 over the past year. The total number of shares bought during that period was 312,229 while 126,483 shares were sold.

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