Onto Innovation (NYSE:ONTO) Stock Price Down 6.7% - Time to Sell?

Key Points

• Onto Innovation shares fell 6.7% to about $225, trading well below their 50-day and 200-day moving averages of roughly $288 and $283, respectively.
• Despite the decline, analysts remain bullish: the stock has a consensus “Buy” rating and a $380 price target, supported by multiple recent target increases.
• The company reported strong quarterly results, beating EPS and revenue estimates, with revenue up 35.3% year over year. However, two directors recently sold shares under pre-arranged trading plans, while institutional investors own 98.35% of the stock.

Onto Innovation Inc. (NYSE:ONTO - Get Free Report)'s share price was down 6.7% on Thursday. The company traded as low as $220.22 and last traded at $225.1440. Approximately 577,304 shares changed hands during trading, a decline of 45% from the average session volume of 1,046,059 shares. The stock had previously closed at $241.41.

Analyst Ratings Changes

ONTO has been the subject of a number of recent research reports. Cantor Fitzgerald upped their price objective on shares of Onto Innovation from $350.00 to $410.00 and gave the stock an "overweight" rating in a report on Monday, June 29th. B. Riley Financial reissued a "buy" rating on shares of Onto Innovation in a research report on Friday, August 7th. The Goldman Sachs Group began coverage on Onto Innovation in a report on Monday, August 17th. They set a "buy" rating and a $400.00 target price on the stock. Wall Street Zen upgraded Onto Innovation from a "hold" rating to a "buy" rating in a report on Sunday, August 9th. Finally, Jefferies Financial Group boosted their price target on Onto Innovation from $350.00 to $400.00 and gave the stock a "buy" rating in a research report on Friday, August 7th. Two research analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and one has issued a Hold rating to the company's stock. According to MarketBeat, the company has a consensus rating of "Buy" and a consensus target price of $380.00.

Onto Innovation Stock Performance

The company has a debt-to-equity ratio of 0.77, a current ratio of 9.73 and a quick ratio of 8.33. The firm has a fifty day simple moving average of $287.53 and a 200 day simple moving average of $283.15. The company has a market cap of $11.11 billion, a price-to-earnings ratio of 85.21, a P/E/G ratio of 0.86 and a beta of 1.58.

Onto Innovation (NYSE:ONTO - Get Free Report) last released 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. Onto Innovation had a net margin of 11.84% and a return on equity of 13.44%. The company had revenue of $343.13 million for the quarter, compared to analyst estimates of $325.29 million. During the same quarter last year, the firm posted $1.25 earnings per share. The company's quarterly 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, sell-side analysts expect that Onto Innovation Inc. will post 8.04 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Onto Innovation news, Director Susan Lynch sold 1,000 shares of the company's stock in a transaction dated Friday, August 21st. The shares were sold at an average price of $302.30, for a total transaction of $302,300.00. Following the completion of the sale, 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 legal filing 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, Director David Miller sold 2,000 shares of the company's stock in a transaction dated Tuesday, September 29th. The shares were sold at an average price of $300.00, for a total transaction of $600,000.00. Following the sale, the director owned 10,692 shares of the company's stock, valued at $3,207,600. This trade represents a 15.76% 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. 0.51% of the stock is owned by insiders.

Hedge Funds Weigh In On Onto Innovation

Several large investors have recently made changes to their positions in the business. Curated Wealth Partners LLC bought a new stake in Onto Innovation in the 3rd quarter valued at $224,000. HBW Advisory Services LLC raised its stake in shares of Onto Innovation by 18.2% in the 3rd quarter. HBW Advisory Services LLC now owns 807 shares of the semiconductor company's stock valued at $248,000 after buying an additional 124 shares in the last quarter. Fort Washington Investment Advisors Inc. OH raised its stake in shares of Onto Innovation by 6.5% in the 3rd quarter. Fort Washington Investment Advisors Inc. OH now owns 135,605 shares of the semiconductor company's stock valued at $41,742,000 after buying an additional 8,315 shares in the last quarter. Mather Group LLC. lifted its holdings in shares of Onto Innovation by 115.8% during the 3rd quarter. Mather Group LLC. now owns 259 shares of the semiconductor company's stock worth $80,000 after acquiring an additional 139 shares during the period. Finally, First Citizens Bank & Trust Co. bought a new position in shares of Onto Innovation during the 3rd quarter worth about $334,000. Institutional investors and hedge funds 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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