Onto Innovation (NYSE:ONTO) Rating Lowered to “Hold” at Wall Street Zen

Onto Innovation (NYSE:ONTO) was downgraded by stock analysts at Wall Street Zen from a “buy” rating to a “hold” rating in a research report issued to clients and investors on Saturday, Wall Street Zen reports.

Several other equities research analysts have also recently commented on the stock. Needham & Company LLC dropped their price target on shares of Onto Innovation from $360.00 to $285.00 and set a “buy” rating on the stock in a research report on Tuesday. Royal Bank Of Canada reduced their price objective on shares of Onto Innovation from $400.00 to $350.00 and set an “outperform” rating for the company in a research report on Tuesday. Morgan Stanley reduced their price objective on shares of Onto Innovation from $360.00 to $325.00 and set an “overweight” rating for the company in a research report on Tuesday. Freedom Broker lowered their price objective on shares of Onto Innovation from $410.00 to $325.00 and set a “buy” rating on the stock in a research note on Wednesday. Finally, Cantor Fitzgerald reiterated an “overweight” rating on shares of Onto Innovation in a report on Tuesday, October 20th. Two investment analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and two have given a Hold rating to the stock. According to data from MarketBeat, Onto Innovation presently has a consensus rating of “Buy” and an average price target of $352.08.

Onto Innovation Stock Down 2.9%

ONTO opened at $203.54 on Friday. Onto Innovation has a one year low of $121.57 and a one year high of $386.46. The company has a debt-to-equity ratio of 0.74, a quick ratio of 8.33 and a current ratio of 6.78. The stock’s fifty day moving average is $248.06 and its 200-day moving average is $259.13. The company has a market capitalization of $9.99 billion, a PE ratio of 29.74, a P/E/G ratio of 0.61 and a beta of 1.66.

Onto Innovation (NYSE:ONTO) last announced its quarterly earnings data on Monday, November 9th. The semiconductor company reported $2.44 earnings per share for the quarter, beating the consensus estimate of $2.30 by $0.14. Onto Innovation had a return on equity of 17.18% and a net margin of 11.53%. The business had revenue of $409.75 million during the quarter, compared to analyst estimates of $392.06 million. During the same quarter in the prior year, the firm posted $0.92 earnings per share. The company’s revenue was up 87.8% on a year-over-year basis. On average, equities analysts predict that Onto Innovation will post 8.25 EPS for the current fiscal year.

Insider Buying and Selling at Onto Innovation

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

Hedge Funds Weigh In On Onto Innovation

A number of hedge funds and other institutional investors have recently modified their holdings of ONTO. Fiduciary Financial Advisors purchased a new stake in Onto Innovation during the second quarter valued at about $25,000. Highland Investment Advisors LLC acquired a new position in shares of Onto Innovation in the second quarter worth about $25,000. Provenance Wealth Advisors LLC acquired a new position in shares of Onto Innovation in the third quarter worth about $26,000. CoreCap Advisors LLC acquired a new position in shares of Onto Innovation in the second quarter worth about $38,000. Finally, Rakuten Securities Inc. purchased a new position in shares of Onto Innovation in the second quarter worth approximately $40,000. Institutional investors and hedge funds own 98.35% of the company’s stock.

Key Stories Impacting Onto Innovation

These are some of the ONTO stories that stood out recently:

• Positive Sentiment: Q3 operating cash flow reached $79 million, while reported gross-margin expansion and operational efficiencies support the profitability outlook. Article: Onto Innovation’s Q3 Cash Flow Hits $79M
• Neutral Sentiment: RBC lowered its price target to $350 from $400 but maintained an Outperform rating, reflecting a more cautious valuation view without changing its positive rating. Article: RBC Cuts Price Target, Keeps Outperform Rating
• Negative Sentiment: Several reports flag ONTO’s premium valuation, customer-concentration exposure and weaker capital-return profile as risks that could limit upside even as earnings and demand grow. A separate report describes a pessimistic Morgan Stanley outlook, while analyst target cuts—including from Jefferies—add to pressure on sentiment. Article: ONTO Falls as Growth Strength Collides With Valuation

About Onto Innovation

Onto Innovation develops process-control and inspection solutions used in semiconductor manufacturing. Its products include metrology and inspection systems, lithography equipment, and software that help manufacturers monitor production processes and identify defects. The company serves producers of semiconductor devices, advanced packaging, and specialty components. Its technologies support applications ranging from traditional wafer fabrication to newer packaging methods used in complex chips.