Is Kulicke and Soffa Stock a Buy Even as One Fund Dumps a $10 Million Stake?

New York City-based Summit Street Capital Management fully exited its position in Kulicke and Soffa Industries, Inc. (NASDAQ:KLIC), reducing holdings by 281,812 shares during the quarter and resulting in an estimated $9.8 million position change, according to a November 14 SEC filing.

What Happened

According to a Securities and Exchange Commission (SEC) filing dated November 14, Summit Street Capital Management reported a complete sale of its Kulicke and Soffa Industries, Inc. position during the third quarter. The move eliminated a stake that previously accounted for 281,812 shares, with a transaction value based on average quarterly pricing of $9.8 million.

What Else to Know

Summit Street Capital Management's KLIC stake was previously 1.6% of AUM.

Top holdings after the filing:

• NYSE: HPQ: $51.2 million (7% of AUM)
• NASDAQ: IDCC: $34.4 million (4.7% of AUM)
• NYSE: DDS: $33.7 million (4.6% of AUM)
• NYSE: CNR: $28.6 million (3.9% of AUM)
• NASDAQ: UTHR: $28.2 million (3.9% of AUM)

As of Tuesday, shares of Kulicke and Soffa Industries, Inc. were priced at $48.81, down 3% over the past year and underperforming the S&P 500, which is up 13% in the same period.

Company Overview

Company Snapshot

• Kulicke and Soffa Industries designs, manufactures, and sells capital equipment and consumables for semiconductor assembly, including ball bonders, die attach systems, advanced packaging equipment, and related software solutions.
• The company generates revenue primarily through the sale of capital equipment and aftermarket products, with a recurring stream from services, maintenance, and consumables.
• It serves semiconductor device manufacturers, outsourced assembly and test providers, and electronics manufacturers, with a strong presence in the United States and Asia/Pacific regions.

Kulicke and Soffa Industries designs, manufactures, and sells capital equipment and tools used to assemble semiconductor devices, with operations in the United States and the Asia/Pacific region and a broad range of products that serve electronics manufacturing. Kulicke and Soffa Industries, Inc. operates through two segments: capital equipment and aftermarket products and Services, which include advanced packaging products and equipment services. The company serves semiconductor device manufacturers, integrated device manufacturers, outsourced semiconductor assembly and test providers, other electronics manufacturers, industrial manufacturers, and automotive electronics suppliers, primarily in the United States and the Asia/Pacific region. It also generates recurring revenue from services, maintenance, repairs, upgrades, and consumables.

Foolish Take

Even for a fund that trades actively around semiconductor cyclicals, a full exit from a name during a multiquarter rebound is notable — especially when industry order activity is finally showing early signs of improvement. For long-term investors, this kind of move can signal shifting conviction about how quickly capital equipment demand normalizes, even as fundamentals at the company itself begin to stabilize.

Senvest’s disclosure of a complete sale of Kulicke & Soffa came as the company posted solid sequential revenue growth and returned to GAAP profitability in its latest quarter. Revenue rose to $177.6 million with gross margin expanding to 45.7%, and the company generated $6.4 million in net income (or $0.12 per diluted share). Full-year revenue reached $654.1 million, and management highlighted improving end-market dynamics and stronger order activity heading into 2026. K&S also returned capital aggressively, repurchasing 2.4 million shares for $96.5 million over the fiscal year.

Within Senvest’s portfolio, however, KLIC had been a relatively small 1.6% position compared with its largest bets. A full exit suggests the fund sees better risk-adjusted opportunities elsewhere despite management's guidance calling for another sequential revenue increase in the first quarter. Long-term investors should watch whether improving orders translate into sustained margin recovery — something the broader semiconductor equipment cycle will ultimately determine.

Glossary

13F reportable assets: Assets that investment managers must disclose quarterly to the SEC if they exceed a certain threshold.
Assets Under Management (AUM): The total market value of investments managed on behalf of clients by a fund or firm.
Stake: The ownership interest or investment a fund or individual holds in a particular company.
Capital equipment: Large, long-term assets used in manufacturing or production, such as machinery or specialized tools.
Aftermarket products and services: Goods and services sold after the initial equipment purchase, including maintenance, repairs, and consumables.
Ball bonders: Machines used to connect tiny wires to semiconductor devices during assembly.
Die attach systems: Equipment that attaches semiconductor chips (dies) to their packaging or substrates.
Advanced packaging equipment: Specialized machinery for assembling complex semiconductor devices using modern packaging techniques.
Outsourced assembly and test providers: Companies hired by semiconductor firms to assemble and test chips rather than doing it in-house.
Integrated device manufacturers (IDMs): Companies that design, manufacture, and sell semiconductor chips under one organization.
Consumables: Items used up during manufacturing processes, such as bonding wire or adhesives, that require regular replacement.
TTM: The 12-month period ending with the most recent quarterly report.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends HP and United Therapeutics. The Motley Fool has a disclosure policy.