Onto Innovation (NYSE:ONTO) Shares Climb 6.9% - Time to Buy?

Key Points

• Onto Innovation shares rose 6.9% to approximately $336.52, significantly above their 50-day and 200-day moving averages, though trading volume was 88% below average.
• Analysts maintain a bullish outlook, with a consensus “Buy” rating and a $380 price target. Recent quarterly results exceeded expectations, including $1.93 in EPS versus $1.69 expected and 35.3% year-over-year revenue growth.
• The company has strong liquidity, with a 9.73 current ratio and 8.33 quick ratio, but trades at a high P/E ratio of 125.00. Two directors recently sold shares under pre-arranged Rule 10b5-1 plans, while institutional investors own 98.35% of the stock.

Onto Innovation Inc. (NYSE:ONTO - Get Free Report) shares traded up 6.9% on Friday. The stock traded as high as $338.35 and last traded at $336.5220. Approximately 120,401 shares traded hands during mid-day trading, a decline of 88% from the average session volume of 1,044,836 shares. The stock had previously closed at $314.88.

Wall Street Analyst Weigh In

Several equities research analysts have recently commented on the company. B. Riley Financial restated a "buy" rating on shares of Onto Innovation in a research note on Friday, August 7th. Freedom Capital raised Onto Innovation to a "strong-buy" rating in a report on Wednesday, June 17th. Cantor Fitzgerald upped their price target on Onto Innovation from $350.00 to $410.00 and gave the stock an "overweight" rating in a research report on Monday, June 29th. Morgan Stanley reduced their price target on Onto Innovation from $383.00 to $360.00 and set an "overweight" rating for the company in a research report on Tuesday, September 8th. Finally, Deutsche Bank Aktiengesellschaft started coverage on Onto Innovation in a research report on Friday, June 5th. They set a "buy" rating and a $350.00 price objective on the stock. Two research analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and one has issued a Hold rating to the company's stock. According to MarketBeat, Onto Innovation has a consensus rating of "Buy" and a consensus price target of $380.00.

Onto Innovation Price Performance

The company has a debt-to-equity ratio of 0.77, a quick ratio of 8.33 and a current ratio of 9.73. The company has a market cap of $16.37 billion, a P/E ratio of 125.00, a P/E/G ratio of 1.01 and a beta of 1.58. The firm's fifty day moving average is $281.52 and its two-hundred day moving average is $277.65.

Onto Innovation (NYSE:ONTO - Get Free Report) last posted its quarterly earnings results on Thursday, August 6th. The semiconductor company reported $1.93 EPS for the quarter, beating analysts' consensus estimates of $1.69 by $0.24. The business had revenue of $343.13 million for the quarter, compared to analysts' expectations of $325.29 million. Onto Innovation had a return on equity of 13.44% and a net margin of 11.84%.The business's quarterly revenue was up 35.3% on a year-over-year basis. During the same period last year, the firm earned $1.25 earnings per share. Onto Innovation has set its Q3 2026 guidance at 2.180-2.380 EPS. As a group, analysts anticipate that Onto Innovation Inc. will post 8.04 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Onto Innovation news, Director David Miller sold 2,000 shares of the stock in a transaction that occurred on Tuesday, September 29th. The shares were sold at an average price of $300.00, for a total transaction of $600,000.00. Following the completion of the sale, the director directly owned 10,692 shares of the company's stock, valued at $3,207,600. This trade represents a 15.76% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Susan D. Lynch sold 1,000 shares of Onto Innovation stock in a transaction that occurred on Friday, August 21st. The shares were sold at an average price of $302.30, for a total transaction of $302,300.00. Following the sale, the director owned 2,684 shares in the company, valued at approximately $811,373.20. The trade was a 27.14% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.51% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Onto Innovation

A number of hedge funds and other institutional investors have recently modified their holdings of ONTO. Allworth Financial LP boosted its position in Onto Innovation by 3.9% during the second quarter. Allworth Financial LP now owns 987 shares of the semiconductor company's stock valued at $374,000 after purchasing an additional 37 shares in the last quarter. Parallel Advisors LLC raised its holdings in Onto Innovation by 16.5% in the first 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 raised its holdings in Onto Innovation by 4.9% in the first quarter. Kestra Advisory Services LLC now owns 1,368 shares of the semiconductor company's stock worth $281,000 after purchasing an additional 64 shares in the last quarter. Highland Investment Advisors LLC purchased a new stake in shares of Onto Innovation during the second quarter valued at about $25,000. Finally, Fiduciary Financial Advisors bought a new stake in shares of Onto Innovation in the 2nd quarter valued at about $25,000. Institutional investors own 98.35% of the company's stock.

About Onto Innovation

Onto Innovation Inc NYSE: ONTO develops process control, inspection, metrology and lithography solutions for the semiconductor and advanced packaging industries. Its technologies help chip manufacturers monitor and control production processes, identify defects and improve yields during the fabrication of integrated circuits and other electronic components.

The company's product portfolio includes optical and materials metrology systems, wafer and macro-defect inspection equipment, lithography systems, software and data-analysis tools, and solutions for semiconductor packaging and related applications.

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