Kulicke and Soffa Industries, Inc. (NASDAQ:KLIC) Plans Dividend Increase – $0.21 Per Share

Kulicke and Soffa Industries, Inc. (NASDAQ:KLIC) declared a quarterly dividend on Wednesday, November 13th,Wall Street Journal reports. Stockholders of record on Thursday, December 19th will be paid a dividend of 0.205 per share by the semiconductor company on Tuesday, January 7th. This represents a $0.82 dividend on an annualized basis and a dividend yield of 1.64%. The ex-dividend date of this dividend is Thursday, December 19th. This is a boost from Kulicke and Soffa Industries’s previous quarterly dividend of $0.20.

Kulicke and Soffa Industries has raised its dividend by an average of 15.5% per year over the last three years. Kulicke and Soffa Industries has a payout ratio of 48.2% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect Kulicke and Soffa Industries to earn $2.34 per share next year, which means the company should continue to be able to cover its $0.82 annual dividend with an expected future payout ratio of 35.0%.

Kulicke and Soffa Industries Stock Performance

KLIC stock opened at $50.11 on Tuesday. The stock has a market capitalization of $2.70 billion, a P/E ratio of -40.74 and a beta of 1.38. The company has a 50 day moving average price of $46.96 and a two-hundred day moving average price of $45.57. Kulicke and Soffa Industries has a one year low of $38.20 and a one year high of $56.71.

Kulicke and Soffa Industries (NASDAQ:KLIC) last posted its earnings results on Wednesday, November 13th. The semiconductor company reported $0.34 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.35 by ($0.01). Kulicke and Soffa Industries had a negative return on equity of 0.92% and a negative net margin of 9.77%. The business had revenue of $181.30 million for the quarter, compared to analyst estimates of $180.03 million. During the same period last year, the company posted $0.51 EPS. The firm’s revenue for the quarter was down 10.4% compared to the same quarter last year. Research analysts forecast that Kulicke and Soffa Industries will post 1.29 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

A number of equities analysts recently commented on KLIC shares. DA Davidson decreased their price target on Kulicke and Soffa Industries from $65.00 to $60.00 and set a “buy” rating for the company in a research note on Friday, November 15th. Needham & Company LLC upgraded shares of Kulicke and Soffa Industries from a “hold” rating to a “buy” rating and set a $55.00 target price on the stock in a report on Friday, November 15th. StockNews.com downgraded Kulicke and Soffa Industries from a “hold” rating to a “sell” rating in a research note on Wednesday, November 20th. Finally, TD Cowen lifted their price target on Kulicke and Soffa Industries from $45.00 to $50.00 and gave the company a “hold” rating in a report on Friday, November 15th. One equities research analyst has rated the stock with a sell rating, two have assigned a hold rating and three have issued a buy rating to the company. According to MarketBeat.com, Kulicke and Soffa Industries currently has a consensus rating of “Hold” and a consensus price target of $52.40.

Kulicke and Soffa Industries announced that its board has initiated a stock buyback program on Wednesday, November 13th that permits the company to buyback $300.00 million in outstanding shares. This buyback authorization permits the semiconductor company to buy up to 11.7% of its shares through open market purchases. Shares buyback programs are often a sign that the company’s board of directors believes its stock is undervalued.

Insiders Place Their Bets

In related news, SVP Robert Nestor Chylak sold 11,391 shares of Kulicke and Soffa Industries stock in a transaction on Monday, December 9th. The shares were sold at an average price of $49.52, for a total value of $564,082.32. Following the transaction, the senior vice president now owns 20,838 shares in the company, valued at $1,031,897.76. This trade represents a 35.34 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, EVP Chan Pin Chong sold 9,730 shares of the company’s stock in a transaction dated Tuesday, November 19th. The shares were sold at an average price of $46.07, for a total transaction of $448,261.10. Following the sale, the executive vice president now owns 81,916 shares of the company’s stock, valued at $3,773,870.12. This trade represents a 10.62 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 221,121 shares of company stock valued at $10,527,843 over the last 90 days. 0.03% of the stock is currently owned by company insiders.

Kulicke and Soffa Industries Company Profile

Kulicke and Soffa Industries, Inc designs, manufactures, and sells capital equipment and tools used to assemble semiconductor devices. It operates through four segments: Ball Bonding Equipment, Wedge Bonding Equipment, Advanced Solutions, and Aftermarket Products and Services (APS). The company offers ball bonding equipment, wafer level bonding equipment, wedge bonding equipment; and advanced display, die-attach, and thermocompression systems and solutions, as well as tools, spares and services for equipment.