Veeco Instruments (NASDAQ:VECO) Stock Jumps 8.2% - Should You Buy?

Key Points

• Veeco Instruments shares jumped 8.2% to $57.57, although trading volume was 84% below the average session level.
• Recent operating results beat expectations: quarterly EPS was $0.33 versus a $0.26 estimate, revenue reached $193.48 million, and sales increased 16.5% year over year.
• Analyst sentiment remains mixed, with an average rating of “Hold” and a consensus price target of $61.33. Meanwhile, the CFO and CEO sold shares under pre-arranged Rule 10b5-1 plans, while institutional investors own 98.46% of the stock.

Veeco Instruments Inc. (NASDAQ:VECO - Get Free Report)'s share price rose 8.2% during trading on Friday. The company traded as high as $59.99 and last traded at $57.57. Approximately 180,695 shares were traded during trading, a decline of 84% from the average session volume of 1,119,017 shares. The stock had previously closed at $53.19.

Wall Street Analysts Forecast Growth

VECO has been the topic of several research reports. Wall Street Zen raised Veeco Instruments from a "buy" rating to a "strong-buy" rating in a research report on Saturday, September 12th. Citigroup upped their price target on shares of Veeco Instruments from $60.00 to $63.00 and gave the company a "buy" rating in a research report on Monday, August 10th. Weiss Ratings cut shares of Veeco Instruments from a "hold (c)" rating to a "hold (c-)" rating in a research note on Friday, August 21st. Zacks Research downgraded shares of Veeco Instruments from a "strong-buy" rating to a "hold" rating in a report on Monday, July 6th. Finally, Northland Securities upgraded shares of Veeco Instruments from a "market perform" rating to an "outperform" rating and set a $66.00 target price for the company in a research report on Monday, September 21st. Two investment analysts have rated the stock with a Buy rating and four have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the company presently has an average rating of "Hold" and a consensus target price of $61.33.

Veeco Instruments Price Performance

The firm has a market cap of $3.63 billion, a PE ratio of 164.87 and a beta of 1.36. The firm's fifty day simple moving average is $47.40 and its two-hundred day simple moving average is $51.61. The company has a quick ratio of 2.69, a current ratio of 3.93 and a debt-to-equity ratio of 0.25.

Veeco Instruments (NASDAQ:VECO - Get Free Report) last announced its quarterly earnings data on Wednesday, August 5th. The semiconductor company reported $0.33 EPS for the quarter, beating the consensus estimate of $0.26 by $0.07. The firm had revenue of $193.48 million for the quarter, compared to the consensus estimate of $180.08 million. Veeco Instruments had a net margin of 3.40% and a return on equity of 3.52%. The company's revenue was up 16.5% on a year-over-year basis. During the same period last year, the firm earned $0.20 EPS. Veeco Instruments has set its FY 2026 guidance at 1.360-1.610 EPS and its Q3 2026 guidance at 0.350-0.490 EPS. As a group, research analysts expect that Veeco Instruments Inc. will post 0.95 EPS for the current year.

Insider Transactions at Veeco Instruments

In related news, CFO John Kiernan sold 35,000 shares of the stock in a transaction dated Monday, August 10th. The stock was sold at an average price of $51.05, for a total transaction of $1,786,750.00. Following the completion of the sale, the chief financial officer owned 68,802 shares in the company, valued at approximately $3,512,342.10. This trade represents a 33.72% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO William Miller sold 200,000 shares of Veeco Instruments stock in a transaction that occurred on Monday, August 17th. The shares were sold at an average price of $54.18, for a total value of $10,836,000.00. Following the sale, the chief executive officer directly owned 169,570 shares in the company, valued at $9,187,302.60. This trade represents a 54.12% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 2.70% of the company's stock.

Hedge Funds Weigh In On Veeco Instruments

Hedge funds have recently modified their holdings of the stock. BlackRock Inc. bought a new stake in Veeco Instruments during the second quarter worth approximately $728,127,000. Paradigm Capital Management Inc. NY purchased a new stake in Veeco Instruments during the 2nd quarter valued at $156,557,000. The Manufacturers Life Insurance Company purchased a new stake in Veeco Instruments during the 2nd quarter valued at $134,434,000. Magnetar Financial LLC bought a new stake in Veeco Instruments in the fourth quarter worth $48,342,000. Finally, Barrow Hanley Mewhinney & Strauss LLC bought a new stake in Veeco Instruments in the second quarter worth $65,836,000. Hedge funds and other institutional investors own 98.46% of the company's stock.

About Veeco Instruments

Veeco Instruments Inc NASDAQ: VECO develops and manufactures process equipment used to produce semiconductors, compound semiconductors, data-storage devices and other advanced electronic materials. Its systems are designed to support critical steps in manufacturing, including deposition, etching, annealing and lithography-related processes.

The company's product portfolio includes metal-organic chemical vapor deposition systems, molecular beam epitaxy systems, ion beam etch and deposition equipment, laser annealing systems, and other specialized process tools.

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