Nova Ltd. (NASDAQ:NVMI) Stock Has Average Target Price of $470.00 According to Brokerages

Key Points

• Analyst sentiment is “Moderate Buy”: Six of ten analysts rate Nova a Buy and four rate it Hold, with an average 12-month price target of $470. Recent target cuts included Barclays to $500 and Needham to $420.
• Quarterly results beat expectations: Revenue rose 28.2% year over year to $287.84 million, and EPS of $2.86 topped the $2.77 consensus. Nova forecast Q4 EPS of $3.03–$3.18.
• Nova authorized a $200 million share repurchase program, allowing it to buy back up to 1.9% of its outstanding shares.

Nova Ltd. (NASDAQ:NVMI - Get Free Report) has earned an average rating of "Moderate Buy" from the ten research firms that are covering the company, MarketBeat Ratings reports. Four equities research analysts have rated the stock with a hold recommendation and six have given a buy recommendation to the company. The average 12 month price target among analysts that have covered the stock in the last year is $470.00.

Several equities research analysts have commented on the company. Wall Street Zen upgraded Nova from a "sell" rating to a "hold" rating in a research report on Saturday. Barclays cut their target price on shares of Nova from $600.00 to $500.00 and set an "overweight" rating for the company in a report on Friday. Needham & Company LLC decreased their target price on shares of Nova from $570.00 to $420.00 and set a "buy" rating for the company in a research note on Thursday. Citigroup downgraded shares of Nova from a "buy" rating to a "neutral" rating and lowered their price target for the stock from $550.00 to $415.00 in a report on Thursday, October 8th. Finally, Jefferies Financial Group lowered their price target on shares of Nova from $600.00 to $460.00 and set a "buy" rating on the stock in a report on Friday.

Nova Trading Up 11.7%

NVMI traded up $32.88 during midday trading on Friday, hitting $313.18. 463,560 shares of the company were exchanged, compared to its average volume of 281,614. The company's 50 day simple moving average is $346.38 and its 200 day simple moving average is $437.27. The firm has a market capitalization of $9.95 billion, a price-to-earnings ratio of 35.51, a price-to-earnings-growth ratio of 1.51 and a beta of 1.85. Nova has a 1-year low of $266.43 and a 1-year high of $615.99.

Nova (NASDAQ:NVMI - Get Free Report) last issued its quarterly earnings data on Thursday, November 5th. The semiconductor company reported $2.86 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.77 by $0.09. Nova had a return on equity of 21.41% and a net margin of 28.84%. The business had revenue of $287.84 million during the quarter, compared to analysts' expectations of $282.23 million. During the same quarter in the previous year, the firm posted $2.16 EPS. The company's revenue for the quarter was up 28.2% on a year-over-year basis. Nova has set its Q4 2026 guidance at 3.030-3.180 EPS. On average, equities analysts anticipate that Nova will post 9.89 EPS for the current year.

Nova declared that its Board of Directors has authorized a share repurchase program on Wednesday, September 2nd that permits the company to repurchase $200 million in outstanding shares. This repurchase authorization permits the semiconductor company to reacquire up to 1.9% of its shares through open market purchases. Stock repurchase programs are generally an indication that the company's management believes its stock is undervalued.

Key Nova News

Here are the key news stories impacting Nova this week:

• Positive Sentiment: Q3 revenue reached a record $287.8 million, up 28.2% year over year, while adjusted EPS of $2.86 topped the roughly $2.77 consensus. Nova reports record third-quarter results
• Positive Sentiment: Nova forecast Q4 revenue of $305 million–$315 million and EPS of $3.03–$3.18, with the EPS range just above analyst expectations. Management also pointed to strong memory and packaging demand and visibility into 2027 growth. Nova Q4 outlook
• Neutral Sentiment: Despite the earnings beat, one post-results report said the stock dropped, suggesting strong expectations may have limited the market’s initial response. Nova Q3 results and stock reaction
• Negative Sentiment: Barclays reduced its price target to $500 from $600, and Needham cut its target to $420 from $570. Both firms kept positive ratings—Overweight and Buy, respectively—but the lower targets could weigh on sentiment. Barclays rating

Insider Activity

In other news, CEO Gabriel Waisman sold 1,500 shares of the firm's stock in a transaction dated Tuesday, September 1st. The stock was sold at an average price of $342.27, for a total transaction of $513,405.00. Following the sale, the chief executive officer directly owned 27,214 shares in the company, valued at $9,314,535.78. This trade represents a 5.22% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Shay Wolfing sold 3,864 shares of Nova stock in a transaction dated Monday, September 21st. The shares were sold at an average price of $363.28, for a total value of $1,403,713.92. Following the completion of the transaction, the insider owned 21,409 shares of the company's stock, valued at approximately $7,777,461.52. This represents a 15.29% 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. Corporate insiders own 1.00% of the company's stock.

Institutional Trading of Nova

Several institutional investors have recently bought and sold shares of the business. Sumitomo Mitsui Trust Group Inc. grew its stake in Nova by 2.7% in the 1st quarter. Sumitomo Mitsui Trust Group Inc. now owns 1,124 shares of the semiconductor company's stock valued at $488,000 after acquiring an additional 30 shares during the period. Parallel Advisors LLC lifted its holdings in Nova by 20.0% during the first quarter. Parallel Advisors LLC now owns 264 shares of the semiconductor company's stock valued at $115,000 after purchasing an additional 44 shares in the last quarter. IFP Advisors Inc lifted its holdings in Nova by 688.9% during the second quarter. IFP Advisors Inc now owns 71 shares of the semiconductor company's stock valued at $39,000 after purchasing an additional 62 shares in the last quarter. NewEdge Advisors LLC lifted its holdings in Nova by 4.9% during the second quarter. NewEdge Advisors LLC now owns 1,383 shares of the semiconductor company's stock valued at $751,000 after purchasing an additional 65 shares in the last quarter. Finally, Allworth Financial LP acquired a new stake in shares of Nova in the second quarter valued at about $38,000. 82.99% of the stock is owned by institutional investors and hedge funds.

Nova Company Profile

Nova Ltd. NASDAQ: NVMI develops and supplies metrology and process-control solutions for the semiconductor manufacturing industry. Its systems help chipmakers measure and control critical dimensions, film thickness, material properties and other characteristics during the production of integrated circuits.

The company's product portfolio includes optical and X-ray metrology systems, chemical metrology solutions, and related software and analytics tools. These technologies are used in multiple stages of semiconductor fabrication, including front-end wafer processing and advanced packaging, to support process development, yield improvement and manufacturing control.

Founded in 1993, Nova is headquartered in Rehovot, Israel, and serves semiconductor manufacturers and other industry customers through operations and support activities across North America, Europe and Asia.

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