Nova (NASDAQ:NVMI) Shares Climb 10.9% Following Better-Than-Expected Earnings

Key Points

• Nova shares rose 10.9% after the company reported quarterly EPS of $2.86 and revenue of $287.84 million, beating analyst estimates; revenue increased 28.2% year over year.
• Nova forecast fourth-quarter EPS of $3.03–$3.18, slightly above the $3.02 consensus, while revenue guidance of $305–$315 million broadly bracketed expectations.
• The board authorized a $200 million share repurchase program, allowing Nova to buy back up to 1.9% of its shares.

Nova Ltd. (NASDAQ:NVMI - Get Free Report) shares rose 10.9% during trading on Friday following a stronger than expected earnings report. The stock traded as high as $314.07 and last traded at $310.9580. Approximately 161,966 shares were traded during mid-day trading, a decline of 63% from the average session volume of 438,223 shares. The stock had previously closed at $280.30.

The semiconductor company reported $2.86 earnings per share for the quarter, beating the consensus estimate of $2.77 by $0.09. The company had revenue of $287.84 million for the quarter, compared to the consensus estimate of $282.23 million. Nova had a return on equity of 21.41% and a net margin of 28.84%. The company's revenue was up 28.2% on a year-over-year basis. During the same period last year, the business posted $2.16 EPS. Nova has set its Q4 2026 guidance at 3.030-3.180 EPS.

Nova declared that its board has initiated a stock repurchase program on Wednesday, September 2nd that permits the company to repurchase $200 million in shares. This buyback authorization permits the semiconductor company to purchase up to 1.9% of its shares through open market purchases. Share buyback programs are typically an indication that the company's leadership believes its stock is undervalued.

Nova News Roundup

Here are the key news stories impacting Nova this week:

• Positive Sentiment: Nova reported record Q3 revenue of $287.8 million, up 28.2% year over year, and adjusted earnings of $2.86 per share. Both beat analysts’ estimates, and earnings rose from $2.16 a year earlier. Nova Reports Record Third Quarter 2026 Financial Results
• Positive Sentiment: Management expects Q4 EPS of $3.03–$3.18, slightly above the $3.02 consensus, and highlighted more than 33% growth in the second half of 2026. The earnings call coverage also pointed to strong growth and visibility into 2027. Nova Q4 Guidance and Second-Half Growth Earnings Call Highlights
• Neutral Sentiment: Q4 revenue guidance of $305–$315 million brackets the $306.1 million consensus, offering limited evidence of a substantial forecast beat. Q4 Revenue Guidance
• Negative Sentiment: Coverage noted that the stock fell after the results, indicating investors may have been looking for stronger forward guidance despite the quarterly beat. Needham also cut its price target to $420 from $570, although it maintained a Buy rating. Nova Q3 Beats but Stock Drops Needham Ratings

Wall Street Analyst Weigh In

A number of equities analysts have recently issued reports on NVMI shares. Wall Street Zen downgraded shares of Nova from a "hold" rating to a "sell" rating in a report on Sunday, October 25th. Citigroup downgraded shares of Nova from a "buy" rating to a "neutral" rating and decreased their price objective for the stock from $550.00 to $415.00 in a report on Thursday, October 8th. Evercore set a $475.00 target price on shares of Nova in a research report on Friday, August 7th. Jefferies Financial Group reaffirmed a "buy" rating and issued a $600.00 target price on shares of Nova in a report on Thursday, August 6th. Finally, Cantor Fitzgerald reduced their price target on shares of Nova from $600.00 to $500.00 and set an "overweight" rating for the company in a research report on Friday, August 7th. Seven equities research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $482.78.

Insider Activity at Nova

In other news, CEO Gabriel Waisman sold 1,500 shares of Nova stock in a transaction on Tuesday, September 1st. The stock was sold at an average price of $342.27, for a total value of $513,405.00. Following the completion of the sale, the chief executive officer owned 27,214 shares of the company's stock, valued at $9,314,535.78. The trade was a 5.22% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Shay Wolfing sold 3,864 shares of Nova stock in a transaction dated Monday, September 21st. The shares were sold at an average price of $363.28, for a total value of $1,403,713.92. Following the completion of the sale, the insider owned 21,409 shares of the company's stock, valued at $7,777,461.52. This trade represents a 15.29% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 1.00% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the stock. Ethic Inc. increased its stake in shares of Nova by 4.5% in the 3rd quarter. Ethic Inc. now owns 1,713 shares of the semiconductor company's stock valued at $660,000 after buying an additional 73 shares during the period. StoneX Group Inc. acquired a new position in shares of Nova during the third quarter valued at $259,000. Tower View Wealth Management LLC lifted its stake in shares of Nova by 5.0% during the third quarter. Tower View Wealth Management LLC now owns 11,885 shares of the semiconductor company's stock valued at $4,578,000 after acquiring an additional 569 shares during the period. Walser Wealth Management Company A Ltd Liability Co bought a new position in Nova in the third quarter valued at about $367,000. Finally, Mather Group LLC. boosted its holdings in Nova by 214.3% in the third quarter. Mather Group LLC. now owns 154 shares of the semiconductor company's stock valued at $59,000 after acquiring an additional 105 shares during the last quarter. 82.99% of the stock is owned by hedge funds and other institutional investors.

Nova Price Performance

The stock has a market capitalization of $9.83 billion, a price-to-earnings ratio of 38.26, a price-to-earnings-growth ratio of 1.47 and a beta of 1.85. The stock has a 50-day moving average of $347.53 and a 200 day moving average of $437.96.

About Nova

Nova Ltd. NASDAQ: NVMI develops and supplies metrology and process-control solutions for the semiconductor manufacturing industry. Its systems help chipmakers measure and control critical dimensions, film thickness, material properties and other characteristics during the production of integrated circuits.

The company's product portfolio includes optical and X-ray metrology systems, chemical metrology solutions, and related software and analytics tools. These technologies are used in multiple stages of semiconductor fabrication, including front-end wafer processing and advanced packaging, to support process development, yield improvement and manufacturing control.

Founded in 1993, Nova is headquartered in Rehovot, Israel, and serves semiconductor manufacturers and other industry customers through operations and support activities across North America, Europe and Asia.

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