Nova (NASDAQ:NVMI) Cut to Hold at Zacks Research

Key Points

• Zacks Research downgraded Nova (NASDAQ:NVMI) from "strong-buy" to "hold" in a report released Tuesday.
• Most other analysts remain bullish—eight rate NVMI a Buy, two rate it Hold, with a consensus price target of $442.25 and individual targets as high as $520.
• Shares trade around $517.43 near the 1-year high after Nova posted a slight quarterly beat (EPS $2.14 vs. $2.13) and revenue up 14.3%, with a strong net margin (~29.4%).

Nova (NASDAQ:NVMI - Get Free Report) was downgraded by equities researchers at Zacks Research from a "strong-buy" rating to a "hold" rating in a report released on Tuesday,Zacks.com reports.

Several other brokerages have also issued reports on NVMI. Bank of America upped their target price on Nova from $380.00 to $450.00 and gave the stock a "buy" rating in a research note on Tuesday, January 13th. Citigroup upped their target price on Nova from $370.00 to $520.00 and gave the stock a "buy" rating in a research note on Friday, February 13th. Morgan Stanley reaffirmed an "outperform" rating and issued a $453.00 target price on shares of Nova in a research note on Friday, February 13th. Barclays initiated coverage on Nova in a research note on Wednesday, March 11th. They issued an "overweight" rating and a $465.00 target price for the company. Finally, Jefferies Financial Group reaffirmed a "buy" rating and issued a $520.00 target price on shares of Nova in a research note on Thursday, February 12th. Eight research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company's stock. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $442.25.

Nova Stock Up 0.5%

Shares of NVMI opened at $517.43 on Tuesday. The firm has a market cap of $16.44 billion, a P/E ratio of 64.60, a P/E/G ratio of 3.76 and a beta of 1.80. The stock has a 50 day simple moving average of $452.55 and a two-hundred day simple moving average of $385.72. The company has a debt-to-equity ratio of 0.56, a current ratio of 6.28 and a quick ratio of 5.47. Nova has a 1 year low of $168.18 and a 1 year high of $521.81.

Nova (NASDAQ:NVMI - Get Free Report) last issued its earnings results on Friday, February 13th. The semiconductor company reported $2.14 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.13 by $0.01. The business had revenue of $222.62 million during the quarter, compared to analyst estimates of $220.43 million. Nova had a return on equity of 22.90% and a net margin of 29.44%.Nova's revenue for the quarter was up 14.3% on a year-over-year basis. During the same quarter in the prior year, the firm earned $1.94 earnings per share. On average, analysts forecast that Nova will post 7.52 earnings per share for the current fiscal year.

Institutional Trading of Nova

Institutional investors have recently made changes to their positions in the stock. Smartleaf Asset Management LLC purchased a new stake in shares of Nova during the fourth quarter valued at approximately $29,000. Measured Wealth Private Client Group LLC purchased a new stake in shares of Nova during the third quarter valued at approximately $40,000. CIBC Private Wealth Group LLC boosted its stake in shares of Nova by 75.7% during the third quarter. CIBC Private Wealth Group LLC now owns 130 shares of the semiconductor company's stock valued at $42,000 after purchasing an additional 56 shares during the period. Caitong International Asset Management Co. Ltd boosted its stake in shares of Nova by 2,042.9% during the third quarter. Caitong International Asset Management Co. Ltd now owns 150 shares of the semiconductor company's stock valued at $48,000 after purchasing an additional 143 shares during the period. Finally, Advisors Asset Management Inc. boosted its stake in shares of Nova by 51.6% during the first quarter. Advisors Asset Management Inc. now owns 376 shares of the semiconductor company's stock valued at $69,000 after purchasing an additional 128 shares during the period. Hedge funds and other 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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