Onto Innovation (NYSE:ONTO) Stock Price Target Cut by B. Riley Financial

Key Points

• B. Riley cut its price target on Onto Innovation from $340 to $285 but maintained a Buy rating; the new target implies about 50% upside from the previous close.
• Analyst sentiment remains broadly positive: the stock has a consensus Buy rating and an average price target of $377.73.
• Onto Innovation’s latest quarterly results beat estimates, with EPS of $1.93 versus $1.69 expected and revenue up 35.3% year over year; shares rose 9.6% on Monday to $189.91.

Onto Innovation (NYSE:ONTO - Get Free Report) had its target price cut by equities research analysts at B. Riley Financial from $340.00 to $285.00 in a note issued to investors on Monday, Benzinga reports. The firm currently has a "buy" rating on the semiconductor company's stock. B. Riley Financial's price target indicates a potential upside of 50.07% from the company's previous close.

A number of other equities analysts have also recently weighed in on ONTO. Royal Bank Of Canada assumed coverage on Onto Innovation in a report on Friday, October 2nd. They issued an "outperform" rating and a $400.00 price target for the company. Evercore reiterated an "outperform" rating and set a $390.00 price objective on shares of Onto Innovation in a research note on Friday, August 7th. The Goldman Sachs Group started coverage on shares of Onto Innovation in a research report on Monday, August 17th. They set a "buy" rating and a $400.00 target price on the stock. Zacks Research raised shares of Onto Innovation from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, July 14th. Finally, Needham & Company LLC upped their target price on shares of Onto Innovation from $330.00 to $360.00 and gave the company a "buy" rating in a research note on Friday, August 7th. Two equities research analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating and one has given a Hold rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of "Buy" and an average target price of $377.73.

Onto Innovation Stock Up 9.6%

Shares of NYSE ONTO traded up $16.63 on Monday, hitting $189.91. The company had a trading volume of 179,936 shares, compared to its average volume of 1,054,998. The company has a quick ratio of 8.33, a current ratio of 9.73 and a debt-to-equity ratio of 0.77. Onto Innovation has a 12-month low of $121.57 and a 12-month high of $386.46. The firm has a market capitalization of $9.32 billion, a P/E ratio of 71.44, a PEG ratio of 0.57 and a beta of 1.66. The business has a 50 day moving average of $253.65 and a two-hundred day moving average of $259.30.

Onto Innovation (NYSE:ONTO - Get Free Report) last announced its earnings results on Thursday, August 6th. The semiconductor company reported $1.93 EPS for the quarter, beating the consensus estimate of $1.69 by $0.24. The business had revenue of $343.13 million for the quarter, compared to the consensus estimate of $325.29 million. Onto Innovation had a return on equity of 13.44% and a net margin of 11.84%. The company's revenue was up 35.3% on a year-over-year basis. During the same period last year, the business posted $1.25 EPS. As a group, equities research analysts forecast that Onto Innovation will post 8.04 earnings per share for the current fiscal year.

Insider Activity

In other Onto Innovation news, Director David Miller sold 2,000 shares of the firm's stock in a transaction that occurred on Tuesday, September 29th. The stock was sold at an average price of $300.00, for a total transaction of $600,000.00. Following the completion of the sale, the director owned 10,692 shares in the company, valued at $3,207,600. This trade represents a 15.76% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Susan D. Lynch sold 1,000 shares of the firm's stock in a transaction that occurred on Friday, August 21st. The shares were sold at an average price of $302.30, for a total value of $302,300.00. Following the sale, the director owned 2,684 shares of the company's stock, valued at approximately $811,373.20. This trade represents a 27.14% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 0.51% of the company's stock.

Hedge Funds Weigh In On Onto Innovation

A number of institutional investors have recently made changes to their positions in ONTO. Phoenix Financial Ltd. raised its holdings in shares of Onto Innovation by 12.0% during the third quarter. Phoenix Financial Ltd. now owns 450,163 shares of the semiconductor company's stock valued at $138,569,000 after buying an additional 48,350 shares during the last quarter. Aberdeen Group plc boosted its position in shares of Onto Innovation by 1,716.0% during the third quarter. Aberdeen Group plc now owns 97,502 shares of the semiconductor company's stock worth $30,013,000 after buying an additional 92,133 shares during the period. Russell Investments Group Ltd. boosted its position in shares of Onto Innovation by 7.9% during the third quarter. Russell Investments Group Ltd. now owns 97,385 shares of the semiconductor company's stock worth $29,978,000 after buying an additional 7,092 shares during the period. Eurizon Capital SGR S.p.A. grew its holdings in Onto Innovation by 60.5% in the 3rd quarter. Eurizon Capital SGR S.p.A. now owns 711 shares of the semiconductor company's stock worth $217,000 after buying an additional 268 shares in the last quarter. Finally, Fifth Third Bancorp grew its holdings in Onto Innovation by 21.2% in the 3rd quarter. Fifth Third Bancorp now owns 16,132 shares of the semiconductor company's stock worth $4,966,000 after buying an additional 2,819 shares in the last quarter. 98.35% of the stock is owned by institutional investors and hedge funds.

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.

Onto Innovation was formed in 2019 through the merger of Nanometrics and Rudolph Technologies.

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