Shares of semiconductor, LED, and electronic assembly solutions provider, Kulicke & Soffa Industries, Inc. (KLIC) have gained 56.5% over the past 12 months. The company caters to automotive, communications, computing, industrial, and consumer markets.
Notably, this month KLIC launched KNeXt – its web-based industry 4.0 software solution. This platform provides instant access within a customer’s network and dashboards that enable search and control of thousands of connected machines.
It also provides customized and cost-effective software modules, along with a standalone Software as a Service (SaaS) integrated into the customer’s manufacturing system and host software.
KLIC’s upcoming earnings for the first quarter are expected on February 2. Consensus estimates point to earnings per share of $1.9 for this period. With these developments in mind, let us take a look at the changes in KLIC’s key risk factors that investors should know.
According to the TipRanks Risk Factors tool, Kulicke and Soffa’s top risk category is Tech & Innovation, contributing 22% to the total 32 risks identified.
In its recent annual report, the company has added one key risk factor under the Macro & Political risk category. Compared to a sector average of 15%, KLIC’s Macro & Political risk factor is at 19%.
KLIC noted that events such as pandemics and extreme weather events stemming from climate change could have an adverse impact on the company’s operations and financial performance. Last year, Texas had seen historic cold weather, which led to power outages that affected KLIC’s components suppliers.
Hedge Fund Activity
According to TipRanks data, the Wall Street’s top hedge funds have decreased holdings in Kulicke & Soffa by 582.4 thousand shares in the last quarter, indicating a very negative hedge fund confidence signal in the stock based on activities of seven hedge funds in the recent quarter.
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