Onto Innovation (NYSE:ONTO) Rating Increased to Buy at Wall Street Zen

Key Points

• Wall Street Zen upgraded Onto Innovation to “buy” from “hold,” adding to a broadly positive analyst view. The stock has an average “Buy” rating and a consensus price target of $378.11.
• Onto Innovation reported strong quarterly results, with EPS of $1.93 exceeding the $1.69 estimate and revenue rising 35.3% year over year to $343.13 million. The company also issued above-consensus third-quarter EPS guidance of $2.18–$2.38.
• AI-related advanced-packaging demand is supporting growth: Onto’s backlog exceeds $1.1 billion and extends into 2027, while institutional investors own 98.35% of the company’s stock.

Onto Innovation (NYSE:ONTO - Get Free Report) was upgraded by research analysts at Wall Street Zen from a "hold" rating to a "buy" rating in a report released on Sunday.

Other equities research analysts also recently issued reports about the stock. Deutsche Bank Aktiengesellschaft initiated coverage on shares of Onto Innovation in a research report on Friday, June 5th. They set a "buy" rating and a $350.00 price target for the company. Zacks Research upgraded Onto Innovation from a "hold" rating to a "strong-buy" rating in a report on Tuesday, July 14th. Morgan Stanley reaffirmed an "overweight" rating and issued a $383.00 price objective on shares of Onto Innovation in a research note on Friday. Cantor Fitzgerald lifted their price objective on Onto Innovation from $350.00 to $410.00 and gave the stock an "overweight" rating in a report on Monday, June 29th. Finally, Weiss Ratings reiterated a "hold (c)" rating on shares of Onto Innovation in a research report on Friday, July 24th. Two investment analysts have rated the stock with a Strong Buy rating, nine have given a Buy rating and one has given a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Buy" and a consensus price target of $378.11.

Onto Innovation Stock Up 14.5%

Shares of ONTO opened at $307.78 on Friday. Onto Innovation has a 52-week low of $93.50 and a 52-week high of $386.46. The company has a 50-day simple moving average of $297.04 and a 200-day simple moving average of $256.05. The company has a market capitalization of $15.31 billion, a PE ratio of 115.71, a P/E/G ratio of 1.26 and a beta of 1.59.

Onto Innovation (NYSE:ONTO - Get Free Report) last released its quarterly earnings data on Thursday, August 6th. The semiconductor company reported $1.93 EPS for the quarter, topping analysts' consensus estimates of $1.69 by $0.24. Onto Innovation had a net margin of 11.84% and a return on equity of 13.19%. The firm had revenue of $343.13 million for the quarter, compared to the consensus estimate of $325.29 million. During the same quarter in the previous year, the firm earned $1.25 earnings per share. The firm's revenue was up 35.3% on a year-over-year basis. Onto Innovation has set its Q3 2026 guidance at 2.180-2.380 EPS. On average, research analysts anticipate that Onto Innovation will post 7.13 EPS for the current year.

Institutional Trading of Onto Innovation

Institutional investors and hedge funds have recently modified their holdings of the business. Root Financial Partners LLC increased its stake in shares of Onto Innovation by 71.2% during the 4th quarter. Root Financial Partners LLC now owns 178 shares of the semiconductor company's stock worth $28,000 after purchasing an additional 74 shares in the last quarter. Transamerica Financial Advisors LLC lifted its stake in Onto Innovation by 188.5% in the 4th quarter. Transamerica Financial Advisors LLC now owns 176 shares of the semiconductor company's stock valued at $28,000 after buying an additional 115 shares in the last quarter. Millstone Evans Group LLC lifted its stake in Onto Innovation by 147.8% in the 1st quarter. Millstone Evans Group LLC now owns 166 shares of the semiconductor company's stock valued at $34,000 after buying an additional 99 shares in the last quarter. CoreCap Advisors LLC acquired a new stake in Onto Innovation during the 2nd quarter valued at $38,000. Finally, CIBC Private Wealth Group LLC grew its holdings in Onto Innovation by 109.4% during the 4th quarter. CIBC Private Wealth Group LLC now owns 245 shares of the semiconductor company's stock valued at $39,000 after buying an additional 128 shares during the last quarter. Hedge funds and other institutional investors own 98.35% of the company's stock.

Key Onto Innovation News

Here are the key news stories impacting Onto Innovation this week:

• Positive Sentiment: Q2 results beat expectations: Onto reported adjusted earnings of $1.93 per share versus the $1.69 consensus estimate, while revenue reached a record $343.1 million, up 35.3% year over year and above the $325.3 million expected. Profitability also improved, with gross profit up 50.1% and operating profit nearly doubling. Onto Innovation earnings report
• Positive Sentiment: Raised outlook significantly: Third-quarter EPS guidance of $2.18-$2.38 and revenue guidance of $380 million-$400 million are well above Wall Street estimates of $1.93 and $351.8 million, respectively. The stronger forecast supports expectations for accelerating near-term growth. Onto Innovation second-quarter results
• Positive Sentiment: AI and advanced packaging demand remain strong: Management said backlog exceeded $1.1 billion, with orders extending into 2027. Demand for advanced packaging equipment tied to AI chip production is strengthening the company’s visibility and second-half outlook. ONTO Q2 earnings call highlights
• Positive Sentiment: Analyst confidence increased: Needham raised its price target from $330 to $360 and maintained a Buy rating, reinforcing the positive reaction to the earnings and guidance. Analyst price target update
• Positive Sentiment: Industrywide catalyst: A proposed Tesla-SpaceX “Terafab” chip-manufacturing buildout could increase long-term demand for semiconductor inspection and metrology equipment from Onto and other suppliers. Tesla-SpaceX Terafab chip equipment outlook

About Onto Innovation

Onto Innovation NYSE: ONTO is a global supplier of advanced process control and inspection systems for semiconductor and electronics manufacturers. The company's solutions span metrology, inspection, defect review and lithography mask repair, helping customers optimize yield, reduce costs and improve device performance. By integrating high-resolution optical and e-beam tools with sophisticated software analytics, Onto Innovation enables wafer, mask and advanced packaging producers to maintain tight process control across leading-edge nodes and specialty applications.

Key products include high-throughput wafer metrology systems, optical and e-beam defect inspection platforms, mask inspection and repair tools, and data-driven software for yield management and process optimization.

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.

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