Citigroup Issues Pessimistic Forecast for Nova (NASDAQ:NVMI) Stock Price

Key Points

• Citigroup lowered Nova’s price target from $595 to $550 but maintained a “buy” rating, implying 41.2% upside from the previous close.
• Analyst sentiment remains broadly positive, with eight buy ratings and three holds; the consensus rating is “Moderate Buy” with an average price target of $514.44.
• Nova exceeded quarterly expectations, reporting $2.51 in EPS and $254.96 million in revenue, while revenue grew 15.9% year over year. Shares recently traded at $389.51, well below their 52-week high of $615.99.

Nova (NASDAQ:NVMI - Get Free Report) had its price target reduced by equities researchers at Citigroup from $595.00 to $550.00 in a research report issued on Monday,Benzinga reports. The brokerage currently has a "buy" rating on the semiconductor company's stock. Citigroup's price objective would indicate a potential upside of 41.20% from the company's previous close.

Other equities research analysts also recently issued reports about the company. Zacks Research downgraded Nova from a "strong-buy" rating to a "hold" rating in a report on Tuesday, April 14th. Cantor Fitzgerald cut their target price on shares of Nova from $600.00 to $500.00 and set an "overweight" rating on the stock in a report on Friday. Weiss Ratings downgraded Nova from a "hold (c+)" rating to a "hold (c)" rating in a research note on Tuesday, July 7th. Wall Street Zen upgraded Nova from a "sell" rating to a "hold" rating in a research report on Saturday, May 16th. Finally, Morgan Stanley upped their price objective on Nova from $494.00 to $540.00 and gave the stock an "equal weight" rating in a research note on Monday, July 6th. Eight investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $514.44.

Nova Stock Performance

Shares of Nova stock traded down $3.51 during trading on Monday, reaching $389.51. The company had a trading volume of 67,869 shares, compared to its average volume of 442,808. Nova has a fifty-two week low of $232.73 and a fifty-two week high of $615.99. The firm's fifty day moving average is $480.56 and its 200-day moving average is $475.91. The company has a market cap of $12.38 billion, a price-to-earnings ratio of 48.37, a price-to-earnings-growth ratio of 2.31 and a beta of 1.78.

Nova (NASDAQ:NVMI - Get Free Report) last posted its quarterly earnings results on Thursday, August 6th. The semiconductor company reported $2.51 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%.During the same period last year, the firm earned $2.20 earnings per share. The company's revenue for the quarter was up 15.9% compared to the same quarter last year. Nova has set its Q3 2026 guidance at 2.700-2.850 EPS. On average, research analysts anticipate that Nova will post 9.71 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, Director Yaniv Garty sold 366 shares of the business's stock in a transaction that occurred on Monday, June 22nd. The stock was sold at an average price of $581.20, for a total transaction of $212,719.20. Following the completion of the transaction, the director directly owned 2,006 shares in the company, valued at approximately $1,165,887.20. The trade was a 15.43% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Eitan Oppenhaim sold 1,290 shares of the stock in a transaction that occurred 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 directly owned 6,421 shares of the company's stock, valued at $3,731,885.20. This trade represents a 16.73% 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. In the last three months, insiders sold 7,798 shares of company stock worth $4,125,266. 1.00% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the business. Smartleaf Asset Management LLC acquired a new stake in Nova in the fourth quarter worth about $29,000. Measured Wealth Private Client Group LLC acquired a new position in Nova during the 3rd quarter valued at about $40,000. CIBC Private Wealth Group LLC raised its position in shares of Nova by 75.7% during the 3rd quarter. CIBC Private Wealth Group LLC now owns 130 shares of the semiconductor company's stock worth $42,000 after buying an additional 56 shares in the last quarter. Caitong International Asset Management Co. Ltd raised its position in shares of Nova by 2,042.9% during the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 150 shares of the semiconductor company's stock worth $48,000 after buying an additional 143 shares in the last quarter. Finally, Advisors Asset Management Inc. lifted its stake in shares of Nova by 51.6% in the 1st quarter. Advisors Asset Management Inc. now owns 376 shares of the semiconductor company's stock worth $69,000 after acquiring an additional 128 shares during the period. Institutional investors own 82.99% of the company's stock.

Nova Company Profile

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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