Royal Bank Of Canada Upgrades Onto Innovation (NYSE:ONTO) to "Moderate Buy"

Key Points

• Royal Bank of Canada upgraded Onto Innovation to “moderate buy,” joining a broadly positive analyst outlook. The stock has a consensus “Buy” rating and an average price target of $380.
• Onto Innovation reported strong quarterly results, with earnings of $1.93 per share and revenue of $343.13 million, beating estimates; revenue increased 35.3% year over year.
• Shares opened at $327.49 after rising 4%, while institutional investors own 98.35% of the stock. Two directors recently sold shares under pre-arranged Rule 10b5-1 trading plans.

Onto Innovation (NYSE:ONTO - Get Free Report) was upgraded by stock analysts at Royal Bank Of Canada to a "moderate buy" rating in a report issued on Friday, Zacks reports.

A number of other brokerages also recently commented on ONTO. Wall Street Zen upgraded shares of Onto Innovation from a "hold" rating to a "buy" rating in a report on Sunday, August 9th. The Goldman Sachs Group assumed coverage on Onto Innovation in a report on Monday, August 17th. They issued a "buy" rating and a $400.00 price target for the company. Weiss Ratings upgraded Onto Innovation from a "hold (c-)" rating to a "hold (c)" rating in a report on Friday, August 21st. Oppenheimer lifted their price objective on Onto Innovation from $370.00 to $450.00 and gave the company an "outperform" rating in a research report on Monday, June 22nd. Finally, Evercore reiterated an "outperform" rating and issued a $390.00 target price on shares of Onto Innovation in a research note on Friday, August 7th. Two 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 stock. Based on data from MarketBeat.com, the company has a consensus rating of "Buy" and an average price target of $380.00.

Onto Innovation Stock Up 4.0%

Shares of NYSE:ONTO opened at $327.49 on Friday. 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 52-week low of $118.97 and a 52-week high of $386.46. The stock's fifty day simple moving average is $282.63 and its 200-day simple moving average is $278.00. The company has a market capitalization of $16.07 billion, a P/E ratio of 123.12, a P/E/G ratio of 1.03 and a beta of 1.58.

Onto Innovation (NYSE:ONTO - Get Free Report) last posted its quarterly earnings data on Thursday, August 6th. The semiconductor company reported $1.93 EPS for the quarter, beating analysts' consensus estimates of $1.69 by $0.24. Onto Innovation had a return on equity of 13.44% and a net margin of 11.84%.The business had revenue of $343.13 million for the quarter, compared to analyst estimates of $325.29 million. During the same quarter last year, the company earned $1.25 earnings per share. The business's revenue for the quarter was up 35.3% compared to the same quarter last year. Onto Innovation has set its Q3 2026 guidance at 2.180-2.380 EPS. As a group, equities research analysts forecast that Onto Innovation will post 8.04 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, Director Susan Lynch sold 1,000 shares of the stock in a transaction on Friday, August 21st. The stock was sold at an average price of $302.30, for a total value of $302,300.00. Following the transaction, the director directly 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 sale 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 Onto Innovation stock in a transaction on Tuesday, September 29th. The shares were sold at an average price of $300.00, for a total value of $600,000.00. Following the completion of the transaction, the director owned 10,692 shares in the company, valued at $3,207,600. The trade was a 15.76% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 0.51% of the company's stock.

Hedge Funds Weigh In On Onto Innovation

A number of large investors have recently modified their holdings of the company. BlackRock Inc. purchased a new stake in shares of Onto Innovation during the 2nd quarter worth about $2,083,436,000. Paradigm Capital Management Inc. NY acquired a new position in Onto Innovation during the second quarter valued at approximately $416,839,000. William Blair Investment Management LLC acquired a new position in Onto Innovation during the second quarter valued at approximately $251,812,000. Franklin Resources Inc. grew its stake in Onto Innovation by 21.4% during the fourth quarter. Franklin Resources Inc. now owns 1,353,001 shares of the semiconductor company's stock worth $213,585,000 after buying an additional 238,500 shares during the period. Finally, Bank of New York Mellon Corp acquired a new position in shares of Onto Innovation during the 2nd quarter valued at $162,052,000. 98.35% of the stock is currently owned by hedge funds and other institutional investors.

Onto Innovation Company Profile

Onto Innovation Inc NYSE: ONTO develops process control, inspection, metrology and lithography solutions for the semiconductor and advanced packaging industries. Its technologies help chip manufacturers monitor and control production processes, identify defects and improve yields during the fabrication of integrated circuits and other electronic components.

The company's product portfolio includes optical and materials metrology systems, wafer and macro-defect inspection equipment, lithography systems, software and data-analysis tools, and solutions for semiconductor packaging and related applications.

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