Nova (NASDAQ:NVMI) Sets New 1-Year High - Still a Buy?

Key Points

• Shares of Nova hit a new 52-week high of $530.14 (last $529.43) on Monday, with about 13,518 shares traded.
• Analysts maintain a consensus Moderate Buy (eight Buys, two Holds) with an average price target of $442.25, even as several firms issued higher buy/outperform targets (Jefferies $520, BofA $450, Morgan Stanley $453, Evercore $485).
• Company fundamentals show strong profitability (net margin 29.44%, ROE 22.90%) and 14.3% YoY quarterly revenue growth, but a rich valuation (P/E 66.2, PEG 3.87) and high institutional ownership (82.99%).

Shares of Nova Ltd. (NASDAQ:NVMI - Get Free Report) hit a new 52-week high on Monday . The company traded as high as $530.14 and last traded at $529.4250, with a volume of 13518 shares trading hands. The stock had previously closed at $528.76.

Wall Street Analysts Forecast Growth

A number of research analysts recently issued reports on NVMI shares. Weiss Ratings reiterated a "hold (c)" rating on shares of Nova in a research note on Friday, April 10th. Bank of America lifted their price target 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. Jefferies Financial Group reiterated a "buy" rating and issued a $520.00 price target on shares of Nova in a research note on Thursday, February 12th. Morgan Stanley reiterated an "outperform" rating and issued a $453.00 price target on shares of Nova in a research note on Friday, February 13th. Finally, Evercore reissued an "outperform" rating and issued a $485.00 price target on shares of Nova in a research report 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's stock. According to MarketBeat, Nova presently has a consensus rating of "Moderate Buy" and an average target price of $442.25.

Nova Stock Performance

The stock has a market capitalization of $16.89 billion, a price-to-earnings ratio of 66.20, a PEG ratio of 3.87 and a beta of 1.80. The stock's 50 day moving average is $455.69 and its 200 day moving average is $389.00. The company has a current ratio of 6.28, a quick ratio of 5.47 and a debt-to-equity ratio of 0.56.

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, topping the consensus estimate of $2.13 by $0.01. Nova had a net margin of 29.44% and a return on equity of 22.90%. The company had revenue of $222.62 million for the quarter, compared to analysts' expectations of $220.43 million. During the same period last year, the company earned $1.94 EPS. The firm's revenue for the quarter was up 14.3% compared to the same quarter last year. On average, analysts predict that Nova Ltd. will post 7.52 earnings per share for the current year.

Institutional Trading of Nova

Institutional investors have recently added to or reduced their stakes in the business. Mirae Asset Global Investments Co. Ltd. bought a new stake in Nova during the third quarter valued at $10,153,000. Congress Asset Management Co. increased its stake in Nova by 2.7% during the third quarter. Congress Asset Management Co. now owns 286,076 shares of the semiconductor company's stock valued at $91,447,000 after purchasing an additional 7,438 shares during the last quarter. Teacher Retirement System of Texas bought a new stake in Nova during the third quarter valued at $1,375,000. Harel Insurance Investments & Financial Services Ltd. increased its stake in Nova by 6.4% during the third quarter. Harel Insurance Investments & Financial Services Ltd. now owns 1,428,607 shares of the semiconductor company's stock valued at $456,669,000 after purchasing an additional 86,438 shares during the last quarter. Finally, Munro Partners increased its stake in Nova by 65.2% during the third quarter. Munro Partners now owns 23,930 shares of the semiconductor company's stock valued at $7,649,000 after purchasing an additional 9,445 shares during 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.