Onto Innovation (NYSE:ONTO) Shares Down 4.1% - Here's Why

Key Points

• Onto Innovation's shares experienced a 4.1% decline, closing at $115.61 after trading as low as $115.94, with significantly reduced trading volume.
• Despite the recent drop, five analysts maintain a buy rating on the stock, which currently has a consensus price target of $137.86.
• In its latest earnings report, Onto Innovation posted $1.25 earnings per share, slightly missing the expected $1.27, while revenue rose by 4.7% year-over-year to $253.60 million.

Onto Innovation Inc. (NYSE:ONTO - Get Free Report)'s share price traded down 4.1% on Wednesday . The company traded as low as $115.94 and last traded at $115.61. 181,099 shares traded hands during trading, a decline of 85% from the average session volume of 1,241,115 shares. The stock had previously closed at $120.58.

Wall Street Analysts Forecast Growth

A number of research analysts have recently weighed in on the company. B. Riley cut their price objective on Onto Innovation from $160.00 to $145.00 and set a "buy" rating for the company in a research report on Friday, August 8th. Benchmark dropped their price target on Onto Innovation from $190.00 to $160.00 and set a "buy" rating for the company in a research report on Friday, August 8th. Jefferies Financial Group set a $110.00 price target on Onto Innovation and gave the stock a "hold" rating in a research report on Tuesday, May 20th. Finally, Cantor Fitzgerald dropped their price target on Onto Innovation from $110.00 to $90.00 and set a "neutral" rating for the company in a research report on Tuesday, June 24th. Five investment analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $137.86.

Onto Innovation Price Performance

The company has a 50-day simple moving average of $103.42 and a 200-day simple moving average of $109.31. The firm has a market cap of $5.68 billion, a PE ratio of 28.69, a price-to-earnings-growth ratio of 0.79 and a beta of 1.58.

Onto Innovation (NYSE:ONTO - Get Free Report) last posted its quarterly earnings results on Thursday, August 7th. The semiconductor company reported $1.25 earnings per share for the quarter, missing the consensus estimate of $1.27 by ($0.02). Onto Innovation had a net margin of 19.29% and a return on equity of 14.38%. The company had revenue of $253.60 million for the quarter, compared to the consensus estimate of $250.56 million. During the same period in the prior year, the firm posted $1.32 EPS. The business's revenue was up 4.7% on a year-over-year basis. Onto Innovation has set its Q3 2025 guidance at 0.750-0.950 EPS. As a group, equities research analysts predict that Onto Innovation Inc. will post 6.26 earnings per share for the current year.

Institutional Trading of Onto Innovation

Institutional investors and hedge funds have recently modified their holdings of the stock. Orion Porfolio Solutions LLC raised its stake in Onto Innovation by 19.4% in the second quarter. Orion Porfolio Solutions LLC now owns 12,521 shares of the semiconductor company's stock worth $1,264,000 after buying an additional 2,037 shares in the last quarter. Coppell Advisory Solutions LLC bought a new position in Onto Innovation in the second quarter worth approximately $1,928,000. Marex Group plc bought a new position in Onto Innovation in the second quarter worth approximately $217,000. FORA Capital LLC bought a new position in Onto Innovation in the second quarter worth approximately $3,775,000. Finally, Headlands Technologies LLC bought a new position in Onto Innovation in the second quarter worth approximately $989,000. Institutional investors own 98.35% of the company's stock.

About Onto Innovation

Onto Innovation Inc engages in the design, development, manufacture, and support of process control tools that performs optical metrology. The company offers lithography systems and process control analytical software. It also offers process and yield management solutions, and device packaging and test facilities through standalone systems for optical metrology, macro-defect inspection, packaging lithography, and transparent and opaque thin film measurements.

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