Onto Innovation (NYSE:ONTO) Trading Down 5.5% – Should You Sell?

Onto Innovation Inc. (NYSE:ONTO)’s stock price dropped 5.5% during mid-day trading on Thursday . The stock traded as low as $158.83 and last traded at $159.0470. Approximately 348,253 shares changed hands during trading, a decline of 72% from the average daily volume of 1,225,420 shares. The stock had previously closed at $168.37.

Wall Street Analysts Forecast Growth

Several research firms have recently commented on ONTO. B. Riley lifted their target price on Onto Innovation from $173.00 to $180.00 and gave the company a “buy” rating in a research note on Tuesday, November 18th. Needham & Company LLC reiterated a “buy” rating and issued a $150.00 price objective on shares of Onto Innovation in a research report on Tuesday, November 18th. Oppenheimer boosted their price objective on Onto Innovation from $130.00 to $180.00 and gave the stock an “outperform” rating in a report on Tuesday, October 14th. Stifel Nicolaus increased their price objective on shares of Onto Innovation from $110.00 to $120.00 and gave the company a “hold” rating in a report on Monday, October 13th. Finally, Jefferies Financial Group upgraded Onto Innovation from a “hold” rating to a “buy” rating and boosted their target price for the stock from $100.00 to $170.00 in a research report on Tuesday, September 23rd. Six research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $151.25.

Onto Innovation Stock Performance

The stock has a market cap of $7.87 billion, a P/E ratio of 45.33, a PEG ratio of 1.09 and a beta of 1.48. The stock has a fifty day simple moving average of $137.80 and a 200-day simple moving average of $116.04.

Onto Innovation (NYSE:ONTO) last released its earnings results on Thursday, November 6th. The semiconductor company reported $0.92 EPS for the quarter, beating the consensus estimate of $0.89 by $0.03. The firm had revenue of $218.19 million for the quarter, compared to analysts’ expectations of $220.23 million. Onto Innovation had a return on equity of 13.11% and a net margin of 17.46%.The business’s quarterly revenue was down 13.5% compared to the same quarter last year. During the same quarter in the previous year, the business posted $1.34 EPS. Onto Innovation has set its Q4 2025 guidance at 1.180-1.330 EPS. On average, research analysts anticipate that Onto Innovation Inc. will post 6.26 earnings per share for the current year.

Institutional Investors Weigh In On Onto Innovation

Hedge funds have recently bought and sold shares of the stock. Wellington Management Group LLP grew its position in shares of Onto Innovation by 1,217.0% in the third 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 last quarter. William Blair Investment Management LLC boosted its stake in Onto Innovation by 650.4% in the 2nd quarter. William Blair Investment Management LLC now owns 1,098,860 shares of the semiconductor company’s stock valued at $110,908,000 after purchasing an additional 952,419 shares during the period. Voya Investment Management LLC grew its holdings in Onto Innovation by 4,494.6% in the 3rd quarter. Voya Investment Management LLC now owns 868,607 shares of the semiconductor company’s stock valued at $111,974,000 after buying an additional 849,702 shares in the last quarter. Qube Research & Technologies Ltd increased its position in Onto Innovation by 1,510.2% during the 2nd quarter. Qube Research & Technologies Ltd now owns 901,180 shares of the semiconductor company’s stock worth $90,956,000 after buying an additional 845,213 shares during the period. Finally, Norges Bank bought a new position in Onto Innovation during the 2nd quarter worth $71,961,000. 98.35% of the stock is currently owned by institutional investors and hedge funds.

About Onto Innovation

Onto Innovation Inc engages in the design, development, manufacture, and support of process control tools that performs optical metrology. The company offers lithography systems and process control analytical software. It also offers process and yield management solutions, and device packaging and test facilities through standalone systems for optical metrology, macro-defect inspection, packaging lithography, and transparent and opaque thin film measurements.