Onto Innovation (NYSE:ONTO) Shares Gap Down - Should You Sell?

Key Points

• Onto Innovation shares fell sharply: The stock opened at $256.41 versus a previous close of $281.26, down about 9.1%, and last traded near $258.60.
• Analysts remain bullish: The company has a consensus “Buy” rating and an average price target of $378, with recent target increases from Needham and Oppenheimer.
• Fundamentals and institutional support are strong: Onto exceeded quarterly EPS and revenue estimates, with revenue up 35.3% year over year, while institutional investors own approximately 98.35% of the shares.

Onto Innovation Inc. (NYSE:ONTO - Get Free Report)'s stock price gapped down before the market opened on Monday . The stock had previously closed at $281.26, but opened at $256.41. Onto Innovation shares last traded at $258.6030, with a volume of 79,721 shares changing hands.

Analysts Set New Price Targets

A number of equities analysts have weighed in on the company. Wall Street Zen raised Onto Innovation from a "hold" rating to a "buy" rating in a research report on Sunday, August 9th. Needham & Company LLC boosted their price objective on shares of Onto Innovation from $330.00 to $360.00 and gave the company a "buy" rating in a report on Friday, August 7th. B. Riley Financial restated a "buy" rating on shares of Onto Innovation in a report on Friday, August 7th. Weiss Ratings raised shares of Onto Innovation from a "hold (c-)" rating to a "hold (c)" rating in a research report on Friday, August 21st. Finally, Oppenheimer increased their price target on Onto Innovation from $370.00 to $450.00 and gave the company an "outperform" rating in a report on Monday, June 22nd. Two equities research analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating and one has issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Buy" and an average target price of $378.00.

Onto Innovation Stock Down 9.1%

The stock has a market cap of $12.55 billion, a PE ratio of 96.22, a price-to-earnings-growth ratio of 0.92 and a beta of 1.59. 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's 50-day moving average price is $287.29 and its 200 day moving average price is $270.37.

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

Insider Transactions at Onto Innovation

In other Onto Innovation news, Director Susan Lynch sold 1,000 shares of the company's stock in a transaction that occurred on Friday, August 21st. The shares were sold at an average price of $302.30, for a total value of $302,300.00. Following the completion of the transaction, the director directly owned 2,684 shares in the company, valued at $811,373.20. This represents a 27.14% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 0.51% of the company's stock.

Institutional Investors Weigh In On Onto Innovation

A number of institutional investors have recently bought and sold shares of the business. Andar Capital Management HK Ltd purchased a new position in shares of Onto Innovation in the second quarter valued at about $69,000,000. California State Teachers Retirement System grew its position in shares of Onto Innovation by 38,382.2% during the second quarter. California State Teachers Retirement System now owns 21,848,297 shares of the semiconductor company's stock worth $8,268,488,000 after purchasing an additional 21,791,522 shares in the last quarter. BlackRock Inc. bought a new stake in Onto Innovation during the 2nd quarter valued at approximately $2,083,436,000. Wellington Management Group LLP raised its stake in Onto Innovation by 1,217.0% during the 3rd quarter. Wellington Management Group LLP now owns 1,398,995 shares of the semiconductor company's stock valued at $180,778,000 after purchasing an additional 1,292,772 shares during the period. Finally, Franklin Resources Inc. lifted its holdings in Onto Innovation by 21.4% in the 4th quarter. Franklin Resources Inc. now owns 1,353,001 shares of the semiconductor company's stock worth $213,585,000 after purchasing an additional 238,500 shares in the last quarter. Hedge funds and other institutional investors own 98.35% of the company's stock.

Onto Innovation Company Profile

Onto Innovation Inc NYSE: ONTO develops process control, inspection, metrology and lithography systems used in the semiconductor and advanced packaging industries. Its technologies help chip manufacturers monitor and improve processes throughout wafer fabrication, packaging and other stages of production.

The company's products include optical metrology systems, wafer and macro-defect inspection tools, three-dimensional metrology solutions, lithography systems and process-control software.

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