Kulicke and Soffa Industries (NASDAQ:KLIC) Downgraded to Sell at Zacks Investment Research

Zacks Investment Research downgraded shares of Kulicke and Soffa Industries (NASDAQ:KLIC) from a hold rating to a sell rating in a research report report published on Thursday morning, Zacks.com reports.

According to Zacks, “Kulicke & Soffa is a leading provider of semiconductor packaging and electronic assembly solutions supporting the global automotive, consumer, communications, computing and industrial segments. As a pioneer in the semiconductor space, K&S has provided customers with market leading packaging solutions for decades. In recent years, K&S has expanded its product offerings through strategic acquisitions and organic development, adding advanced packaging, electronics assembly, wedge bonding and a broader range of expendable tools to its core offerings. Combined with its extensive expertise in process technology and focus on development, K&S is well positioned to help customers meet the challenges of packaging and assembling the next-generation of electronic devices. “

KLIC has been the topic of several other reports. BidaskClub raised Kulicke and Soffa Industries from a buy rating to a strong-buy rating in a research note on Tuesday, September 24th. DA Davidson cut Kulicke and Soffa Industries from a buy rating to a neutral rating and reduced their price target for the stock from $30.00 to $26.00 in a research note on Monday, July 8th. Finally, ValuEngine cut Kulicke and Soffa Industries from a strong-buy rating to a buy rating in a research note on Wednesday. One investment analyst has rated the stock with a sell rating, two have assigned a hold rating, three have issued a buy rating and one has assigned a strong buy rating to the stock. Kulicke and Soffa Industries presently has a consensus rating of Buy and an average price target of $26.50.

Shares of KLIC traded up $0.24 during mid-day trading on Thursday, hitting $23.76. 253,512 shares of the company’s stock traded hands, compared to its average volume of 430,372. The company has a quick ratio of 4.33, a current ratio of 4.85 and a debt-to-equity ratio of 0.02. Kulicke and Soffa Industries has a 1 year low of $17.40 and a 1 year high of $24.99. The firm has a market capitalization of $1.51 billion, a P/E ratio of 9.78 and a beta of 1.36. The business’s 50-day moving average price is $22.01 and its 200-day moving average price is $22.02.

Kulicke and Soffa Industries (NASDAQ:KLIC) last posted its earnings results on Thursday, August 1st. The semiconductor company reported $0.06 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $0.05 by $0.01. Kulicke and Soffa Industries had a return on equity of 6.21% and a net margin of 5.96%. The firm had revenue of $127.11 million for the quarter, compared to analysts’ expectations of $128.70 million. During the same period in the previous year, the firm earned $0.89 earnings per share. The business’s revenue was down 52.7% compared to the same quarter last year. Sell-side analysts anticipate that Kulicke and Soffa Industries will post 0.45 earnings per share for the current fiscal year.

The company also recently declared a quarterly dividend, which will be paid on Monday, October 14th. Investors of record on Friday, September 27th will be paid a $0.12 dividend. The ex-dividend date of this dividend is Thursday, September 26th. This represents a $0.48 annualized dividend and a yield of 2.02%. Kulicke and Soffa Industries’s payout ratio is 19.75%.

A number of hedge funds have recently modified their holdings of KLIC. Whale Rock Capital Management LLC purchased a new stake in Kulicke and Soffa Industries in the second quarter worth $36,170,000. State of New Jersey Common Pension Fund D purchased a new stake in Kulicke and Soffa Industries in the second quarter worth $7,667,000. ARGA Investment Management LP grew its stake in Kulicke and Soffa Industries by 32.1% in the second quarter. ARGA Investment Management LP now owns 1,293,378 shares of the semiconductor company’s stock worth $29,166,000 after purchasing an additional 314,209 shares during the period. Morgan Stanley grew its stake in Kulicke and Soffa Industries by 1,079.4% in the second quarter. Morgan Stanley now owns 298,233 shares of the semiconductor company’s stock worth $6,725,000 after purchasing an additional 272,946 shares during the period. Finally, Principal Financial Group Inc. grew its stake in Kulicke and Soffa Industries by 2.4% in the first quarter. Principal Financial Group Inc. now owns 4,282,897 shares of the semiconductor company’s stock worth $94,696,000 after purchasing an additional 99,817 shares during the period. 91.79% of the stock is currently owned by institutional investors.

Kulicke and Soffa Industries Company Profile

Kulicke and Soffa Industries, Inc designs, manufactures, and sells capital equipment and tools to assemble semiconductor devices. It operates in two segments, Capital Equipment, and Aftermarket Products and Services (APS). The Capital Equipment segment manufactures and sells a line of ball bonders, wedge bonders, advanced packaging, and electronic assembly solutions.

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