Onto Innovation (NYSE:ONTO) Shares Gap Up - Should You Buy?

Key Points

• Onto Innovation shares gapped up 11.6% after opening well above the prior close, with the stock last trading around $326.95. The move came on solid volume as investors reacted to the company’s recent momentum.
• Wall Street sentiment is broadly positive, with several analysts raising price targets and issuing bullish ratings. The consensus rating is now Moderate Buy, and the average target price is $339.60.
• The company’s latest earnings showed better-than-expected EPS of $1.42 versus $1.38 expected, while revenue rose 9.5% year over year. Institutional ownership remains very high at 98.35%, indicating strong investor interest.

Onto Innovation Inc. (NYSE:ONTO - Get Free Report) gapped up prior to trading on Thursday . The stock had previously closed at $291.45, but opened at $313.63. Onto Innovation shares last traded at $326.9450, with a volume of 292,058 shares changing hands.

Wall Street Analysts Forecast Growth

Several equities research analysts recently weighed in on ONTO shares. Needham & Company LLC increased their target price on Onto Innovation from $320.00 to $330.00 and gave the company a "buy" rating in a report on Wednesday, May 6th. Oppenheimer boosted their price objective on Onto Innovation from $370.00 to $450.00 and gave the company an "outperform" rating in a research report on Monday, June 22nd. Evercore reissued an "outperform" rating and set a $315.00 price objective on shares of Onto Innovation in a research note on Friday, April 17th. Cantor Fitzgerald raised their target price on shares of Onto Innovation from $350.00 to $410.00 and gave the stock an "overweight" rating in a report on Monday, June 29th. Finally, Freedom Capital raised shares of Onto Innovation to a "strong-buy" rating in a research note on Wednesday, June 17th. One investment analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating and two have issued a Hold rating to the company's stock. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $339.60.

Onto Innovation Stock Up 11.6%

The company has a market capitalization of $16.18 billion, a PE ratio of 150.95, a price-to-earnings-growth ratio of 1.14 and a beta of 1.55. The stock's fifty day moving average price is $293.30 and its two-hundred day moving average price is $240.28.

Onto Innovation (NYSE:ONTO - Get Free Report) last announced its quarterly earnings results on Tuesday, May 5th. The semiconductor company reported $1.42 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.38 by $0.04. Onto Innovation had a return on equity of 11.68% and a net margin of 10.32%.The company had revenue of $291.95 million for the quarter, compared to the consensus estimate of $292.00 million. During the same quarter in the previous year, the business earned $1.51 EPS. Onto Innovation's revenue was up 9.5% compared to the same quarter last year. On average, equities research analysts forecast that Onto Innovation Inc. will post 7.14 EPS for the current year.

Hedge Funds Weigh In On Onto Innovation

Hedge funds and other institutional investors have recently made changes to their positions in the business. Parallel Advisors LLC raised its holdings in Onto Innovation by 16.5% in the 1st quarter. Parallel Advisors LLC now owns 395 shares of the semiconductor company's stock worth $81,000 after purchasing an additional 56 shares in the last quarter. Kestra Advisory Services LLC boosted its stake in shares of Onto Innovation by 4.9% during the 1st quarter. Kestra Advisory Services LLC now owns 1,368 shares of the semiconductor company's stock valued at $281,000 after purchasing an additional 64 shares in the last quarter. Root Financial Partners LLC increased its position in shares of Onto Innovation by 71.2% during the fourth quarter. Root Financial Partners LLC now owns 178 shares of the semiconductor company's stock valued at $28,000 after buying an additional 74 shares during the period. Smartleaf Asset Management LLC raised its stake in Onto Innovation by 8.6% in the fourth quarter. Smartleaf Asset Management LLC now owns 1,165 shares of the semiconductor company's stock worth $186,000 after buying an additional 92 shares in the last quarter. Finally, Millstone Evans Group LLC raised its stake in Onto Innovation by 147.8% in the first quarter. Millstone Evans Group LLC now owns 166 shares of the semiconductor company's stock worth $34,000 after buying an additional 99 shares in the last quarter. Institutional investors own 98.35% of the company's stock.

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.

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