Nova (NASDAQ:NVMI) Trading Down 9.4% - Here's Why

Key Points

• Nova shares fell 9.4% on Tuesday, briefly trading as low as $530.22 after closing at $583.10, with volume well below average.
• Despite the stock drop, Nova recently reported better-than-expected quarterly results, with EPS of $2.33 versus $2.20 expected and revenue of $235.31 million topping estimates. The company also issued Q2 2026 guidance of $2.34 to $2.48 EPS.
• Analysts remain largely positive, with nine Buy ratings and two Hold ratings; the consensus target price is $518.22, though several firms recently raised their price targets, including Needham to $640 and Barclays to $600.

Shares of Nova Ltd. (NASDAQ:NVMI - Get Free Report) traded down 9.4% on Tuesday . The company traded as low as $530.22 and last traded at $528.1450. Approximately 110,491 shares traded hands during trading, a decline of 73% from the average daily volume of 401,896 shares. The stock had previously closed at $583.10.

Wall Street Analyst Weigh In

Several equities analysts recently weighed in on NVMI shares. Needham & Company LLC lifted their target price on shares of Nova from $500.00 to $640.00 and gave the company a "buy" rating in a report on Thursday, May 14th. Barclays increased their price target on Nova from $465.00 to $600.00 and gave the company an "overweight" rating in a report on Friday, May 15th. Zacks Research downgraded shares of Nova from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, April 14th. Wall Street Zen raised Nova from a "sell" rating to a "hold" rating in a research report on Saturday, May 16th. Finally, Morgan Stanley set a $494.00 price objective on shares of Nova in a research note on Thursday, May 14th. Nine equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus price target of $518.22.

Nova Trading Down 8.7%

The company has a market cap of $16.91 billion, a price-to-earnings ratio of 66.00, a price-to-earnings-growth ratio of 4.17 and a beta of 1.75. The firm has a 50-day moving average price of $521.48 and a 200 day moving average price of $452.24.

Nova (NASDAQ:NVMI - Get Free Report) last announced its quarterly earnings data on Thursday, May 14th. The semiconductor company reported $2.33 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.20 by $0.13. The firm had revenue of $235.31 million for the quarter, compared to analysts' expectations of $227.02 million. Nova had a return on equity of 21.77% and a net margin of 29.21%.The firm's revenue for the quarter was up 10.3% on a year-over-year basis. During the same period last year, the business posted $2.18 earnings per share. Nova has set its Q2 2026 guidance at 2.340-2.480 EPS. Research analysts anticipate that Nova Ltd. will post 9.44 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, Director Sarit Sagiv sold 426 shares of the company's stock in a transaction that occurred on Monday, May 18th. The stock was sold at an average price of $514.49, for a total transaction of $219,172.74. Following the completion of the transaction, the director directly owned 2,437 shares of the company's stock, valued at approximately $1,253,812.13. This represents a 14.88% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Eitan Oppenhaim sold 1,504 shares of the company's stock in a transaction that occurred on Tuesday, May 26th. The shares were sold at an average price of $519.48, for a total value of $781,297.92. Following the transaction, the director directly owned 6,668 shares of the company's stock, valued at $3,463,892.64. This trade represents a 18.40% 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. Insiders have sold a total of 2,411 shares of company stock worth $1,243,018 over the last quarter. 1.00% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in NVMI. Wasatch Advisors LP lifted its stake in Nova by 4.9% in the second quarter. Wasatch Advisors LP now owns 2,200,948 shares of the semiconductor company's stock valued at $605,701,000 after buying an additional 102,250 shares during the last quarter. Harel Insurance Investments & Financial Services Ltd. grew its position in shares of Nova by 47.5% during the first quarter. Harel Insurance Investments & Financial Services Ltd. now owns 2,166,073 shares of the semiconductor company's stock worth $940,683,000 after acquiring an additional 697,210 shares during the last quarter. Migdal Insurance & Financial Holdings Ltd. grew its position in shares of Nova by 7.0% during the fourth quarter. Migdal Insurance & Financial Holdings Ltd. now owns 1,493,657 shares of the semiconductor company's stock worth $490,502,000 after acquiring an additional 98,000 shares during the last quarter. Vanguard Group Inc. increased its holdings in shares of Nova by 1.4% in the 4th quarter. Vanguard Group Inc. now owns 1,128,957 shares of the semiconductor company's stock worth $377,402,000 after acquiring an additional 15,195 shares during the period. Finally, Invesco Ltd. increased its holdings in shares of Nova by 4.4% in the 4th quarter. Invesco Ltd. now owns 634,284 shares of the semiconductor company's stock worth $208,293,000 after acquiring an additional 26,940 shares during the period. Institutional investors and hedge funds own 82.99% of the company's stock.

About Nova

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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