Stock Buyback Program Initiated by Nova (NASDAQ:NVMI) Board of Directors

Key Points

• Nova authorized a $200 million stock buyback, allowing the semiconductor equipment maker to repurchase up to 1.9% of its shares through open-market purchases.
• Analysts maintain a generally positive outlook, with a consensus rating of “Moderate Buy” and an average price target of $514.44, despite several recent target reductions.
• Nova’s shares rose 3.5% to $349.60, while its latest quarterly results exceeded expectations: EPS was $2.51 versus $2.41 estimated, and revenue increased 15.9% year over year to $254.96 million.

Nova (NASDAQ:NVMI - Get Free Report) announced that its Board of Directors has initiated a stock repurchase plan on Wednesday, September 2nd, RTT News reports. The company plans to buyback $200.00 million in shares. This buyback authorization authorizes the semiconductor company to repurchase up to 1.9% of its stock through open market purchases. Stock buyback plans are typically an indication that the company's board of directors believes its stock is undervalued.

Analyst Ratings Changes

NVMI has been the subject of a number of analyst reports. Jefferies Financial Group reissued a "buy" rating and set a $600.00 price objective on shares of Nova in a research note on Thursday, August 6th. Citigroup lowered their price target on shares of Nova from $595.00 to $550.00 and set a "buy" rating for the company in a report on Monday, August 10th. Evercore set a $475.00 price target on shares of Nova in a report on Friday, August 7th. Cantor Fitzgerald decreased their price objective on shares of Nova from $600.00 to $500.00 and set an "overweight" rating on the stock in a research report on Friday, August 7th. Finally, Morgan Stanley upped their price objective on shares of Nova from $494.00 to $540.00 and gave the company an "equal weight" rating in a research note on Monday, July 6th. One research analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating and two have given a Hold rating to the company. According to MarketBeat, Nova presently has a consensus rating of "Moderate Buy" and a consensus target price of $514.44.

Nova Stock Up 3.5%

Shares of NASDAQ:NVMI traded up $11.96 on Wednesday, hitting $349.60. The company had a trading volume of 498,513 shares, compared to its average volume of 465,860. The firm's 50-day simple moving average is $423.19 and its two-hundred day simple moving average is $465.79. The firm has a market capitalization of $11.11 billion, a price-to-earnings ratio of 43.27, a P/E/G ratio of 1.95 and a beta of 1.76. Nova has a 1 year low of $232.73 and a 1 year high of $615.99.

Nova (NASDAQ:NVMI - Get Free Report) last posted its quarterly earnings data on Friday, August 7th. The semiconductor company reported $2.51 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.41 by $0.10. The business had revenue of $254.96 million during the quarter, compared to the consensus estimate of $250.33 million. Nova had a return on equity of 21.41% and a net margin of 28.84%.The firm's quarterly revenue was up 15.9% compared to the same quarter last year. During the same quarter in the prior year, the company earned $2.20 earnings per share. Equities research analysts anticipate that Nova will post 9.89 EPS for the current year.

Insider Activity

In other news, Director Eitan Oppenhaim sold 1,290 shares of the business's stock in a transaction on Monday, June 22nd. The stock was sold at an average price of $581.20, for a total value of $749,748.00. Following the completion of the transaction, the director owned 6,421 shares in the company, valued at $3,731,885.20. The trade was a 16.73% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Yaniv Garty sold 366 shares of Nova stock in a transaction dated Monday, June 22nd. The stock was sold at an average price of $581.20, for a total value of $212,719.20. Following the completion of the sale, the director owned 2,006 shares of the company's stock, valued at $1,165,887.20. The trade was a 15.43% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 6,942 shares of company stock valued at $3,419,027 over the last ninety days. 1.00% of the stock is currently owned by corporate insiders.

About Nova

Nova Measuring Instruments Ltd NASDAQ: NVMI develops and supplies advanced metrology and process control systems for the semiconductor manufacturing industry. The company's core product line includes spectroscopic ellipsometry and scatterometry tools designed to measure film thickness, critical dimensions, overlay alignment and other key parameters that drive yield and performance in integrated circuit fabrication.

Founded in 1993 and headquartered in Rehovot, Israel, Nova Measuring Instruments has established itself as a critical partner to leading semiconductor foundries and device manufacturers.

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