Onto Innovation (NYSE:ONTO) Now Covered by Evercore

Key Points

• Evercore initiated coverage of Onto Innovation with a “strong buy” rating. Overall, analysts’ average rating is “Buy,” with an average price target of $354.55.
• Several firms lowered their price targets while maintaining bullish ratings; targets cited include $285 from Needham and B. Riley and $350 from Jefferies.
• Onto reported quarterly EPS of $2.44 and revenue of about $410 million, beating consensus estimates; revenue rose 87.8% year over year. The company’s next-quarter revenue and EPS guidance also exceeded analyst expectations.

Analysts at Evercore started coverage on shares of Onto Innovation (NYSE:ONTO - Get Free Report) in a research note issued on Tuesday, Zacks reports. The firm set a "strong-buy" rating on the semiconductor company's stock.

Other equities research analysts have also recently issued reports about the company. Needham & Company LLC decreased their price objective on Onto Innovation from $360.00 to $285.00 and set a "buy" rating for the company in a research note on Tuesday. Jefferies Financial Group cut their target price on Onto Innovation from $400.00 to $350.00 and set a "buy" rating on the stock in a research note on Tuesday. The Goldman Sachs Group began coverage on shares of Onto Innovation in a report on Monday, August 17th. They issued a "buy" rating and a $400.00 target price for the company. Cantor Fitzgerald reissued an "overweight" rating on shares of Onto Innovation in a research report on Tuesday, October 20th. Finally, B. Riley Financial lowered their price target on shares of Onto Innovation from $340.00 to $285.00 and set a "buy" rating on the stock in a report on Monday. Two analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat, Onto Innovation currently has an average rating of "Buy" and an average price target of $354.55.

Onto Innovation Stock Performance

Shares of NYSE:ONTO opened at $197.41 on Tuesday. The firm has a 50 day moving average of $250.73 and a 200 day moving average of $259.12. The company has a quick ratio of 8.33, a current ratio of 9.73 and a debt-to-equity ratio of 0.77. The company has a market capitalization of $9.69 billion, a price-to-earnings ratio of 64.94, a price-to-earnings-growth ratio of 0.63 and a beta of 1.66. Onto Innovation has a 52 week low of $121.57 and a 52 week high of $386.46.

Onto Innovation (NYSE:ONTO - Get Free Report) last announced its earnings results on Monday, November 9th. The semiconductor company reported $2.44 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.30 by $0.14. Onto Innovation had a return on equity of 17.03% and a net margin of 11.53%. The business had revenue of $409.75 million for the quarter, compared to analysts' expectations of $392.08 million. During the same quarter last year, the firm earned $0.92 EPS. The business's revenue for the quarter was up 87.8% on a year-over-year basis. On average, sell-side analysts predict that Onto Innovation will post 8.04 earnings per share for the current fiscal year.

Insider Buying and Selling at Onto Innovation

In other Onto Innovation news, Director Susan D. Lynch sold 1,000 shares of the stock in a transaction dated Friday, August 21st. The stock was sold at an average price of $302.30, for a total value of $302,300.00. Following the completion of the sale, the director directly owned 2,684 shares in the company, valued at approximately $811,373.20. This trade represents a 27.14% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director David Miller sold 2,000 shares of the business's stock in a transaction dated Tuesday, September 29th. The stock was sold at an average price of $300.00, for a total value of $600,000.00. Following the sale, the director owned 10,692 shares in the company, valued at $3,207,600. The trade was a 15.76% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.51% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in ONTO. Fiduciary Financial Advisors acquired a new stake in Onto Innovation during the second quarter worth about $25,000. Highland Investment Advisors LLC acquired a new stake in shares of Onto Innovation during the 2nd quarter worth approximately $25,000. Provenance Wealth Advisors LLC acquired a new stake in shares of Onto Innovation during the 3rd quarter worth approximately $26,000. CoreCap Advisors LLC purchased a new position in shares of Onto Innovation during the 2nd quarter valued at approximately $38,000. Finally, Rakuten Securities Inc. purchased a new position in shares of Onto Innovation during the 2nd quarter valued at approximately $40,000. 98.35% of the stock is currently owned by institutional investors and hedge funds.

Onto Innovation News Summary

Here are the key news stories impacting Onto Innovation this week:

• Positive Sentiment: Onto reported record Q3 revenue of about $410 million, up 88% year over year, and earnings of $2.44 per share. Both exceeded analyst expectations, and revenue, operating margin and EPS topped the high end of the company’s prior guidance. Onto Innovation Reports 2026 Third Quarter Results
• Positive Sentiment: Q4 guidance also came in above consensus: Onto forecast revenue of $430 million–$450 million and EPS of $2.59–$2.79, versus estimates of about $409.5 million and $2.47, respectively. Reports cited AI-related demand and a backlog exceeding $1.3 billion as growth supports. Q4 outlook and backlog
• Negative Sentiment: Several firms cut price targets: Jefferies and RBC lowered theirs to $350, Morgan Stanley to $325, and B. Riley to $285. Each retained a bullish rating, but the reductions signal more cautious valuation assumptions and could weigh on sentiment. Jefferies rating information

About Onto Innovation

Onto Innovation develops process-control and inspection solutions used in semiconductor manufacturing. Its products include metrology and inspection systems, lithography equipment, and software that help manufacturers monitor production processes and identify defects. The company serves producers of semiconductor devices, advanced packaging, and specialty components. Its technologies support applications ranging from traditional wafer fabrication to newer packaging methods used in complex chips.

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