Onto Innovation (NYSE:ONTO) Stock Price Down 7% - Should You Sell?

Key Points

• Shares of Onto Innovation (NYSE: ONTO) fell by 7% to a trading price of $135.20, with trading volume significantly below average.
• Several analysts have downgraded their price targets for the stock, with B. Riley now at $145.00 and Cantor Fitzgerald at $90.00, while Jefferies raised its target to $170.00.
• Despite a revenue of $253.60 million for the last quarter, Onto Innovation reported earnings per share of $1.25, missing the analyst consensus estimate by $0.02.

Shares of Onto Innovation Inc. (NYSE:ONTO - Get Free Report) were down 7% during mid-day trading on Tuesday . The company traded as low as $135.00 and last traded at $135.20. Approximately 363,514 shares changed hands during mid-day trading, a decline of 72% from the average daily volume of 1,295,337 shares. The stock had previously closed at $145.30.

Analyst Upgrades and Downgrades

A number of equities research analysts have weighed in on the company. B. Riley cut their target price 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. Cantor Fitzgerald cut their target price on shares of Onto Innovation from $110.00 to $90.00 and set a "neutral" rating on the stock in a research note on Tuesday, June 24th. Benchmark cut their price objective on Onto Innovation from $190.00 to $160.00 and set a "buy" rating for the company in a report on Friday, August 8th. Jefferies Financial Group upgraded Onto Innovation from a "hold" rating to a "buy" rating and raised their target price for the company from $100.00 to $170.00 in a report on Tuesday, September 23rd. Finally, Weiss Ratings restated a "hold (c)" rating on shares of Onto Innovation in a report on Saturday, September 27th. Six analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. Based on data from MarketBeat, Onto Innovation presently has a consensus rating of "Moderate Buy" and an average target price of $146.43.

Onto Innovation Stock Down 6.9%

The firm has a market capitalization of $6.63 billion, a price-to-earnings ratio of 33.45, a P/E/G ratio of 0.97 and a beta of 1.61. The business has a 50-day moving average of $112.40 and a two-hundred day moving average of $108.85.

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

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in ONTO. William Blair Investment Management LLC boosted its holdings in shares of Onto Innovation by 650.4% in the 2nd quarter. William Blair Investment Management LLC now owns 1,098,860 shares of the semiconductor company's stock worth $110,908,000 after acquiring an additional 952,419 shares in the last quarter. Qube Research & Technologies Ltd boosted its holdings in shares of Onto Innovation by 1,510.2% in the 2nd quarter. Qube Research & Technologies Ltd now owns 901,180 shares of the semiconductor company's stock worth $90,956,000 after acquiring an additional 845,213 shares in the last quarter. Norges Bank acquired a new position in Onto Innovation during the 2nd quarter worth $71,961,000. Situational Awareness LP acquired a new position in Onto Innovation during the 1st quarter worth $71,192,000. Finally, BNP Paribas Financial Markets lifted its holdings in Onto Innovation by 342.6% during the 2nd quarter. BNP Paribas Financial Markets now owns 566,116 shares of the semiconductor company's stock worth $57,138,000 after buying an additional 438,217 shares in the last quarter. Institutional investors own 98.35% of the company's stock.

Onto Innovation Company Profile

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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