Onto Innovation (NYSE:ONTO) Trading Down 8.2% - Should You Sell?

Key Points

• Onto Innovation shares fell 8.2% to about $322.36 in mid-day trading, with volume significantly below the stock’s average session volume.
• Despite the decline, analysts remain broadly bullish: the stock has an average “Buy” rating and a consensus price target of $380.30, with recent targets ranging from $390 to $410.
• The company recently beat quarterly expectations, reporting $1.93 in EPS and $343.13 million in revenue, while revenue increased 35.3% year over year. However, its valuation remains elevated, including a P/E ratio of 119.53.

Onto Innovation Inc. (NYSE:ONTO - Get Free Report)'s share price dropped 8.2% during mid-day trading on Tuesday . The stock traded as low as $323.05 and last traded at $322.3630. 117,234 shares changed hands during trading, a decline of 89% from the average session volume of 1,085,206 shares. The stock had previously closed at $351.16.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently commented on the stock. Cantor Fitzgerald upped their target price on shares of Onto Innovation from $350.00 to $410.00 and gave the company an "overweight" rating in a report on Monday, June 29th. Jefferies Financial Group raised their price target on Onto Innovation from $350.00 to $400.00 and gave the stock a "buy" rating in a report on Friday, August 7th. Evercore restated an "outperform" rating and issued a $390.00 price target on shares of Onto Innovation in a research report on Friday, August 7th. Deutsche Bank Aktiengesellschaft began coverage on Onto Innovation in a research note on Friday, June 5th. They set a "buy" rating and a $350.00 price objective for the company. Finally, B. Riley Financial reaffirmed a "buy" rating on shares of Onto Innovation in a research report on Friday, August 7th. Three investment analysts have rated the stock with a Strong Buy rating, nine have assigned a Buy rating and one has assigned a Hold rating to the company's stock. Based on data from MarketBeat, Onto Innovation has an average rating of "Buy" and a consensus price target of $380.30.

Onto Innovation Stock Down 9.6%

The stock has a market capitalization of $15.57 billion, a PE ratio of 119.53, a PEG ratio of 1.11 and a beta of 1.59. The firm's fifty day moving average is $304.23 and its 200-day moving average is $261.22. The company has a quick ratio of 8.33, a current ratio of 9.73 and a debt-to-equity ratio of 0.77.

Onto Innovation (NYSE:ONTO - Get Free Report) last announced its quarterly earnings data on Thursday, August 6th. The semiconductor company reported $1.93 EPS for the quarter, beating analysts' consensus estimates of $1.69 by $0.24. Onto Innovation had a net margin of 11.84% and a return on equity of 13.44%. The firm had revenue of $343.13 million during the quarter, compared to the consensus estimate of $325.29 million. During the same quarter last year, the firm earned $1.25 earnings per share. The firm's revenue was up 35.3% compared to the same quarter last year. Onto Innovation has set its Q3 2026 guidance at 2.180-2.380 EPS. On average, equities research analysts predict that Onto Innovation Inc. will post 7.88 earnings per share for the current year.

Institutional Trading of Onto Innovation

A number of institutional investors have recently modified their holdings of ONTO. Fiduciary Financial Advisors purchased a new position in Onto Innovation in the second quarter worth $25,000. Root Financial Partners LLC boosted its position 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 boosted its position in shares of Onto Innovation by 188.5% during the 4th quarter. Transamerica Financial Advisors LLC now owns 176 shares of the semiconductor company's stock worth $28,000 after purchasing an additional 115 shares in the last quarter. Millstone Evans Group LLC grew its stake in shares of Onto Innovation by 147.8% during the 1st quarter. Millstone Evans Group LLC now owns 166 shares of the semiconductor company's stock worth $34,000 after purchasing an additional 99 shares during the period. Finally, CoreCap Advisors LLC acquired a new position in shares of Onto Innovation during the 2nd quarter worth $38,000. 98.35% of the stock is currently owned by hedge funds and other institutional investors.

Onto Innovation Company Profile

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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