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    How Insider Share Sales Amid Prolonged Margin Pressure At Kulicke and Soffa (KLIC) Have Changed Its Investment Story

    Simply Wall St·02/27/2026 11:32:15
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    • In recent months, Kulicke and Soffa Industries has faced ongoing revenue and margin pressure as customers postponed equipment purchases, while Director Mui Sung Yeo sold 19,143 shares in an open-market transaction worth about US$1.38 million, reducing her direct stake but retaining more than 78,000 shares.
    • This combination of insider selling and several years of weaker earnings and profitability, despite broader enthusiasm for AI-related demand, has raised questions about how firmly the company is positioned within its end markets.
    • With management share sales occurring alongside multi-year revenue and margin pressure, we’ll now examine how this shapes Kulicke and Soffa’s investment narrative.

    Find 54 companies with promising cash flow potential yet trading below their fair value.

    Kulicke and Soffa Industries Investment Narrative Recap

    To own Kulicke and Soffa today, you really have to believe its advanced packaging and thermocompression tools will translate AI and HBM interest into more consistent revenue and healthier margins. The recent insider sale and ongoing earnings pressure highlight that the near term catalyst remains execution on these new platforms, while the biggest risk is that weaker profitability persists even as AI enthusiasm stays high. So far, this insider activity does not appear to materially change that balance.

    Against this backdrop, the Q1 FY2026 results are particularly relevant. Sales grew to US$199.63 million, but net income dropped sharply to US$16.8 million from US$81.64 million a year earlier, underlining how each sale has become less profitable. This contrast between higher recent revenue and much lower earnings brings the margin story into sharper focus, especially when set alongside the director’s share sale and questions about how durable recent AI driven demand really is.

    Yet even with all the AI optimism, investors should still be aware that...

    Read the full narrative on Kulicke and Soffa Industries (it's free!)

    Kulicke and Soffa Industries' narrative projects $1.0 billion revenue and $192.3 million earnings by 2029. This requires 15.7% yearly revenue growth and an earnings increase of about $192.1 million from $213.0 thousand today.

    Uncover how Kulicke and Soffa Industries' forecasts yield a $46.67 fair value, a 34% downside to its current price.

    Exploring Other Perspectives

    KLIC 1-Year Stock Price Chart
    KLIC 1-Year Stock Price Chart

    The more pessimistic analysts were already assuming only about 13.4% annual revenue growth and US$173.0 million of earnings by 2029, so this fresh margin pressure could nudge their already cautious view on HBM4E opportunities even further.

    Explore 5 other fair value estimates on Kulicke and Soffa Industries - why the stock might be worth as much as $66.67!

    The Verdict Is Yours

    Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.