Nova (NASDAQ:NVMI) Shares Gap Up - Here's Why

Key Points

• Nova shares jumped at the open, rising from a prior close of $337.64 to $354.21 before trading around $346.24.
• Analysts maintain a generally positive outlook, with a “Moderate Buy” consensus and an average price target of $514.44; individual targets range as high as $600.
• Nova exceeded quarterly expectations, reporting $2.51 EPS versus the $2.41 consensus and $254.96 million in revenue, up 15.9% year over year.

Nova Ltd. (NASDAQ:NVMI - Get Free Report)'s stock price gapped up before the market opened on Wednesday . The stock had previously closed at $337.64, but opened at $354.21. Nova shares last traded at $346.24, with a volume of 104,556 shares trading hands.

Wall Street Analysts Forecast Growth

Several equities analysts have recently issued reports on NVMI shares. Evercore set a $475.00 price objective on shares of Nova in a report on Friday, August 7th. Weiss Ratings downgraded shares of Nova from a "hold (c+)" rating to a "hold (c)" rating in a research report on Tuesday, July 7th. Citigroup cut their price target on shares of Nova from $595.00 to $550.00 and set a "buy" rating on the stock in a research note on Monday, August 10th. Needham & Company LLC lowered their price objective on shares of Nova from $640.00 to $570.00 and set a "buy" rating for the company in a research note on Friday, August 7th. Finally, Barclays boosted their price objective on shares of Nova from $465.00 to $600.00 and gave the company an "overweight" rating in a report on Friday, May 15th. One research analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating and two have issued a Hold rating to the company's stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $514.44.

Nova Price Performance

The stock has a market cap of $11.09 billion, a PE ratio of 43.07, a PEG ratio of 2.01 and a beta of 1.76. The company's fifty day moving average is $426.58 and its 200-day moving average is $466.45.

Nova (NASDAQ:NVMI - Get Free Report) last issued its quarterly earnings data on Friday, August 7th. The semiconductor company reported $2.51 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.41 by $0.10. The business had revenue of $254.96 million during the quarter, compared to analysts' expectations of $250.33 million. Nova had a return on equity of 21.41% and a net margin of 28.84%.The company's revenue for the quarter was up 15.9% on a year-over-year basis. During the same quarter in the previous year, the firm posted $2.20 EPS. Analysts expect that Nova Ltd. will post 9.89 EPS for the current year.

Insider Activity

In other news, Director Eitan Oppenhaim sold 1,290 shares of Nova stock in a transaction that occurred on Monday, June 22nd. The shares were sold at an average price of $581.20, for a total transaction of $749,748.00. Following the completion of the transaction, the director directly owned 6,421 shares of the company's stock, valued at $3,731,885.20. The trade was a 16.73% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Yaniv Garty sold 366 shares of the business's stock in a transaction on Monday, June 22nd. The shares were sold at an average price of $581.20, for a total transaction of $212,719.20. Following the completion of the transaction, the director owned 2,006 shares of the company's stock, valued at approximately $1,165,887.20. This represents a 15.43% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 5,442 shares of company stock valued at $2,905,622 in the last quarter. Company insiders own 1.00% of the company's stock.

Institutional Investors Weigh In On Nova

A number of institutional investors have recently modified their holdings of the business. Smartleaf Asset Management LLC purchased a new stake in Nova during the 4th quarter worth approximately $29,000. Allworth Financial LP acquired a new position in Nova in the 2nd quarter valued at $38,000. Measured Wealth Private Client Group LLC purchased a new position in Nova in the 3rd quarter valued at $40,000. CIBC Private Wealth Group LLC boosted its stake in Nova by 75.7% during the 3rd quarter. CIBC Private Wealth Group LLC now owns 130 shares of the semiconductor company's stock worth $42,000 after purchasing an additional 56 shares during the last quarter. Finally, Caitong International Asset Management Co. Ltd grew its holdings in shares of Nova by 2,042.9% during the third quarter. Caitong International Asset Management Co. Ltd now owns 150 shares of the semiconductor company's stock worth $48,000 after buying an additional 143 shares in the last quarter. 82.99% of the stock is currently owned by institutional investors and hedge funds.

Nova Company Profile

Nova Measuring Instruments Ltd NASDAQ: NVMI develops and supplies advanced metrology and process control systems for the semiconductor manufacturing industry. The company's core product line includes spectroscopic ellipsometry and scatterometry tools designed to measure film thickness, critical dimensions, overlay alignment and other key parameters that drive yield and performance in integrated circuit fabrication.

Founded in 1993 and headquartered in Rehovot, Israel, Nova Measuring Instruments has established itself as a critical partner to leading semiconductor foundries and device manufacturers.

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