Nova (NASDAQ:NVMI) Shares Gap Down - Time to Sell?

Key Points

• Nova Ltd. shares experienced a significant drop, gapping down from a previous closing price of $263.34 to open at $244.02, currently trading at $241.90.
• Analysts have varied opinions on the stock with target price adjustments, including a reduction by Benchmark and Citigroup to $280, while Cantor Fitzgerald increased their target to $300.
• The company reported a strong Q2 with earnings per share of $2.20, exceeding expectations, and annual revenue growth of 40.2% compared to the same quarter last year.

Nova Ltd. (NASDAQ:NVMI - Get Free Report) shares gapped down prior to trading on Tuesday . The stock had previously closed at $263.34, but opened at $244.02. Nova shares last traded at $241.90, with a volume of 55,433 shares trading hands.

Wall Street Analysts Forecast Growth

NVMI has been the subject of a number of recent analyst reports. Benchmark cut their price objective on Nova from $295.00 to $280.00 and set a "buy" rating for the company in a research report on Friday, May 9th. Citigroup dropped their price target on Nova from $290.00 to $280.00 and set a "buy" rating for the company in a report on Friday, May 9th. Wall Street Zen cut Nova from a "buy" rating to a "hold" rating in a report on Friday, May 30th. Cantor Fitzgerald reaffirmed an "overweight" rating and issued a $300.00 price objective (up from $250.00) on shares of Nova in a report on Tuesday, June 24th. Finally, Bank of America lifted their price target on Nova from $250.00 to $270.00 and gave the company a "buy" rating in a research note on Tuesday, June 24th. Four analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of $282.50.

Nova Stock Up 1.9%

The company has a market capitalization of $7.52 billion, a PE ratio of 34.79, a P/E/G ratio of 2.08 and a beta of 1.72. The stock has a 50-day moving average of $267.71 and a 200 day moving average of $228.26.

Nova (NASDAQ:NVMI - Get Free Report) last announced its quarterly earnings data on Thursday, August 7th. The semiconductor company reported $2.20 earnings per share for the quarter, beating the consensus estimate of $2.05 by $0.15. The business had revenue of $219.99 million during the quarter, compared to analyst estimates of $214.95 million. Nova had a return on equity of 24.36% and a net margin of 29.10%.Nova's revenue was up 40.2% compared to the same quarter last year. During the same period in the prior year, the company earned $1.61 earnings per share. Nova has set its Q3 2025 guidance at 2.020-2.220 EPS. Equities analysts forecast that Nova Ltd. will post 7.52 EPS for the current fiscal year.

Institutional Trading of Nova

Several large investors have recently bought and sold shares of NVMI. ASR Vermogensbeheer N.V. purchased a new position in Nova in the 1st quarter worth approximately $26,000. SBI Securities Co. Ltd. raised its holdings in Nova by 51.9% in the 2nd quarter. SBI Securities Co. Ltd. now owns 164 shares of the semiconductor company's stock worth $45,000 after acquiring an additional 56 shares during the last quarter. Parallel Advisors LLC raised its stake in Nova by 182.7% during the 2nd quarter. Parallel Advisors LLC now owns 212 shares of the semiconductor company's stock valued at $58,000 after buying an additional 137 shares during the last quarter. Advisors Asset Management Inc. raised its stake in Nova by 51.6% during the 1st quarter. Advisors Asset Management Inc. now owns 376 shares of the semiconductor company's stock valued at $69,000 after buying an additional 128 shares during the last quarter. Finally, EverSource Wealth Advisors LLC raised its stake in Nova by 62.5% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 260 shares of the semiconductor company's stock valued at $72,000 after buying an additional 100 shares during the last quarter. 82.99% of the stock is owned by institutional investors.

Nova Company Profile

Nova Ltd. designs, develops, produces, and sells process control systems used in the manufacture of semiconductors in Israel, Taiwan, the United States, China, Korea, and internationally. Its product portfolio includes a set of metrology platforms for dimensional, films, and materials and chemical metrology measurements for process control for various semiconductor manufacturing process steps, including lithography, etch, chemical mechanical planarization, deposition, electrochemical plating, and advanced packaging.