Nova (NASDAQ:NVMI) Downgraded by Wall Street Zen to Sell

Key Points

• Wall Street Zen downgraded Nova from "hold" to "sell", even though most analysts still rate the stock a "Moderate Buy" (8 Buys, 2 Holds) with an average target of $442.25, which is below the stock's recent ~$494.49 price.
• Fundamentals: Nova slightly beat the quarter with EPS $2.14 and revenue $222.6M (+14.3% YoY), but it trades at a high P/E of 61.7, reflecting a rich valuation despite growth.
• Institutional ownership: Institutional investors hold about 82.99% of Nova's shares, indicating concentrated institutional interest.

Nova (NASDAQ:NVMI - Get Free Report) was downgraded by equities researchers at Wall Street Zen from a "hold" rating to a "sell" rating in a research report issued on Saturday.

A number of other research analysts also recently issued reports on NVMI. Zacks Research downgraded Nova from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, April 14th. Bank of America raised their target price on shares of Nova from $380.00 to $450.00 and gave the stock a "buy" rating in a research note on Tuesday, January 13th. Evercore reaffirmed an "outperform" rating and set a $485.00 price target on shares of Nova in a report on Friday, February 13th. Barclays initiated coverage on shares of Nova in a research report on Wednesday, March 11th. They issued an "overweight" rating and a $465.00 price target for the company. Finally, Morgan Stanley reissued an "outperform" rating and issued a $453.00 price objective on shares of Nova in a research note on Friday, February 13th. Eight equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $442.25.

Nova Trading Down 1.2%

NASDAQ:NVMI opened at $494.49 on Friday. Nova has a one year low of $176.52 and a one year high of $550.00. The business has a fifty day moving average price of $467.89 and a 200-day moving average price of $400.51. The firm has a market capitalization of $15.71 billion, a price-to-earnings ratio of 61.73, a price-to-earnings-growth ratio of 3.66 and a beta of 1.78. 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 (NASDAQ:NVMI - Get Free Report) last released its quarterly earnings results on Friday, February 13th. The semiconductor company reported $2.14 earnings per share (EPS) for the quarter, beating 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 previous year, the company posted $1.94 earnings per share. Sell-side analysts forecast that Nova will post 9.37 EPS for the current year.

Institutional Trading of Nova

Several institutional investors and hedge funds have recently added to or reduced their stakes in NVMI. EverSource Wealth Advisors LLC boosted its stake in Nova by 9.4% in the 4th quarter. EverSource Wealth Advisors LLC now owns 280 shares of the semiconductor company's stock worth $92,000 after purchasing an additional 24 shares during the period. Sumitomo Mitsui Trust Group Inc. raised its position in shares of Nova by 2.7% during the first quarter. Sumitomo Mitsui Trust Group Inc. now owns 1,124 shares of the semiconductor company's stock valued at $488,000 after buying an additional 30 shares during the last quarter. Wealth Enhancement Advisory Services LLC raised its position in shares of Nova by 3.2% during the third quarter. Wealth Enhancement Advisory Services LLC now owns 1,200 shares of the semiconductor company's stock valued at $375,000 after buying an additional 37 shares during the last quarter. Signaturefd LLC lifted its holdings in shares of Nova by 4.5% in the fourth quarter. Signaturefd LLC now owns 992 shares of the semiconductor company's stock worth $326,000 after buying an additional 43 shares in the last quarter. Finally, Bank Hapoalim BM lifted its holdings in shares of Nova by 5.1% in the third quarter. Bank Hapoalim BM now owns 910 shares of the semiconductor company's stock worth $291,000 after buying an additional 44 shares in the last quarter. 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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