Nova Ltd. $NVMI Stock Sold by Congress Asset Management Co.

Key Points

• Congress Asset Management Co. cut its Nova stake by 98.3% in the third quarter, selling 125,718 shares and retaining 2,192 shares worth approximately $844,000. Institutional investors collectively own 82.99% of the company.
• Nova reported quarterly results above expectations, with EPS of $2.51 versus the $2.41 consensus and revenue of $254.96 million versus $250.33 million expected. Revenue increased 15.9% year over year.
• The company authorized a $200 million share-repurchase program, while analyst sentiment remains moderately bullish with a consensus price target of $499.44; however, Citigroup downgraded the stock to neutral and lowered its target to $415.

Congress Asset Management Co. lessened its position in Nova Ltd. (NASDAQ:NVMI - Free Report) by 98.3% in the third quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 2,192 shares of the semiconductor company's stock after selling 125,718 shares during the period. Congress Asset Management Co.'s holdings in Nova were worth $844,000 as of its most recent SEC filing.

Several other institutional investors and hedge funds have also modified their holdings of NVMI. Allworth Financial LP purchased a new stake in Nova in the 2nd quarter worth approximately $38,000. IFP Advisors Inc raised its holdings in Nova by 688.9% in the 2nd quarter. IFP Advisors Inc now owns 71 shares of the semiconductor company's stock valued at $39,000 after acquiring an additional 62 shares during the last quarter. Strategic Investment Advisors MI purchased a new position in shares of Nova during the 1st quarter worth $109,000. Parallel Advisors LLC lifted its stake in shares of Nova by 20.0% during the 1st quarter. Parallel Advisors LLC now owns 264 shares of the semiconductor company's stock worth $115,000 after purchasing an additional 44 shares during the period. Finally, Balefire LLC acquired a new stake in shares of Nova during the second quarter worth $201,000. Hedge funds and other institutional investors own 82.99% of the company's stock.

Nova Price Performance

Shares of NASDAQ:NVMI opened at $354.59 on Friday. The firm has a market capitalization of $11.27 billion, a PE ratio of 43.88, a P/E/G ratio of 1.88 and a beta of 1.79. The business has a 50-day moving average of $375.55 and a two-hundred day moving average of $452.29. Nova Ltd. has a 12 month low of $266.43 and a 12 month high of $615.99.

Nova (NASDAQ:NVMI - Get Free Report) last posted its earnings results 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 firm had revenue of $254.96 million during the quarter, compared to the consensus estimate of $250.33 million. Nova had a net margin of 28.84% and a return on equity of 21.41%. The company's revenue was up 15.9% on a year-over-year basis. During the same quarter in the prior year, the company earned $2.20 EPS. As a group, research analysts anticipate that Nova Ltd. will post 9.89 earnings per share for the current year.

Nova announced that its board has initiated a share repurchase plan on Wednesday, September 2nd that authorizes the company to repurchase $200.00 million in shares. This repurchase authorization authorizes the semiconductor company to buy up to 1.9% of its stock through open market purchases. Stock repurchase plans are typically an indication that the company's board believes its shares are undervalued.

Insiders Place Their Bets

In related news, CEO Gabriel Waisman sold 1,500 shares of the stock in a transaction on Tuesday, September 1st. The stock was sold at an average price of $342.27, for a total value of $513,405.00. Following the completion of the sale, the chief executive officer directly owned 27,214 shares in the company, valued at approximately $9,314,535.78. This represents a 5.22% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through 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 the firm's 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 directly owned 21,409 shares in the company, valued at $7,777,461.52. This trade represents a 15.29% 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. Company insiders own 1.00% of the company's stock.

Wall Street Analysts Forecast Growth

NVMI has been the subject of several analyst reports. Evercore set a $475.00 target price on Nova in a research note on Friday, August 7th. Jefferies Financial Group reissued a "buy" rating and issued a $600.00 price target on shares of Nova in a research note on Thursday, August 6th. Needham & Company LLC lowered their price target on Nova from $640.00 to $570.00 and set a "buy" rating for the company in a report on Friday, August 7th. Cantor Fitzgerald dropped their price objective on shares of Nova from $600.00 to $500.00 and set an "overweight" rating for the company in a research note on Friday, August 7th. Finally, Citigroup lowered shares of Nova from a "buy" rating to a "neutral" rating and cut their price objective for the stock from $550.00 to $415.00 in a report on Thursday. Seven equities research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average price target of $499.44.

More Nova News

Here are the key news stories impacting Nova this week:

• Positive Sentiment: Nova’s record quarterly performance keeps its fundamental case intact, with recent results showing revenue growth and earnings above analyst expectations. However, the strong results have intensified debate over whether the current valuation already reflects much of the company’s expected growth. Nova (NVMI) Record Quarter Keeps Fair Value Debate In Focus
• Neutral Sentiment: Market reports showed Nova trading slightly lower in premarket activity and at a lower level after hours, confirming weak near-term sentiment but providing no new company-specific operating information. Nova stock pre-market report
• Neutral Sentiment: A comparison of Nova with Entegris provides industry context for investors but does not represent a change in Nova’s outlook or financial results. Entegris vs. Nova Head-To-Head Review
• Negative Sentiment: Citigroup downgraded Nova, prompting selling pressure. The downgrade appears to reflect concerns about the shares’ valuation and risk-reward balance following their previous gains, rather than a deterioration in the latest reported quarter. Nova Shares Fall After Citigroup Downgrade
• Negative Sentiment: Zacks Research also lowered Nova from “strong buy” to “hold,” adding to the perception that the stock’s upside may be limited at its current valuation. Nova Rating Lowered to Hold at Zacks Research

Nova Profile

Nova Ltd. NASDAQ: NVMI is an Israel-based provider of process control and metrology solutions for the semiconductor manufacturing industry. The company develops systems that help chipmakers measure and control critical wafer characteristics during production, supporting improvements in process performance, yield and device quality.

Its product portfolio includes optical and X-ray metrology systems used to measure dimensions, film thickness, material composition and other parameters across semiconductor manufacturing processes.

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