Onto Innovation (NYSE:ONTO) Shares Gap Down – Here’s Why

Shares of Onto Innovation Inc. (NYSE:ONTO) gapped down before the market opened on Thursday. The stock had previously closed at $222.14, but opened at $205.38. Onto Innovation shares last traded at $203.6110, with a volume of 95,114 shares changing hands.

Analyst Upgrades and Downgrades

Several equities analysts recently issued reports on the company. B. Riley Financial restated a “buy” rating on shares of Onto Innovation in a research note on Friday, August 7th. Royal Bank Of Canada began coverage on shares of Onto Innovation in a research note on Friday, October 2nd. They set an “outperform” rating and a $400.00 target price for the company. Cantor Fitzgerald reissued an “overweight” rating on shares of Onto Innovation in a report on Tuesday. The Goldman Sachs Group assumed coverage on shares of Onto Innovation in a research report on Monday, August 17th. They issued a “buy” rating and a $400.00 price target on the stock. Finally, Wall Street Zen upgraded shares of Onto Innovation from a “hold” rating to a “buy” rating in a research report on Sunday, August 9th. Two investment analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and one has issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the company has a consensus rating of “Buy” and an average price target of $380.00.

Onto Innovation Price Performance

The company has a market capitalization of $9.80 billion, a P/E ratio of 74.94, a price-to-earnings-growth ratio of 0.72 and a beta of 1.58. The company has a fifty day moving average price of $279.42 and a 200 day moving average price of $283.81. The company has a debt-to-equity ratio of 0.77, a current ratio of 9.73 and a quick ratio of 8.33.

Onto Innovation (NYSE:ONTO) last announced its quarterly earnings results on Thursday, August 6th. The semiconductor company reported $1.93 earnings per share for the quarter, topping analysts’ consensus estimates of $1.69 by $0.24. The business had revenue of $343.13 million for the quarter, compared to analysts’ expectations of $325.29 million. Onto Innovation had a return on equity of 13.44% and a net margin of 11.84%. The business’s quarterly revenue was up 35.3% on a year-over-year basis. During the same period in the prior year, the firm earned $1.25 EPS. Onto Innovation has set its Q3 2026 guidance at 2.180-2.380 EPS. On average, sell-side analysts forecast that Onto Innovation Inc. will post 8.04 EPS for the current fiscal year.

Insider Buying and Selling at Onto Innovation

In other Onto Innovation news, Director David Miller sold 2,000 shares of the 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 sale, the director directly 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 sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Susan Lynch sold 1,000 shares of the firm’s stock in a transaction 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 sale, the director owned 2,684 shares in the company, valued at $811,373.20. The trade was a 27.14% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.51% of the stock is owned by company insiders.

Institutional Trading of Onto Innovation

Large investors have recently modified their holdings of the company. Andar Capital Management HK Ltd bought a new stake in Onto Innovation in the 2nd quarter valued at about $69,000,000. BlackRock Inc. acquired a new position in Onto Innovation during the 2nd quarter valued at about $2,083,436,000. Paradigm Capital Management Inc. NY bought a new position in Onto Innovation in the 2nd quarter worth about $416,839,000. Dimensional Fund Advisors LP grew its position in Onto Innovation by 4.3% in the 1st quarter. Dimensional Fund Advisors LP now owns 677,502 shares of the semiconductor company’s stock worth $138,898,000 after purchasing an additional 28,137 shares during the last quarter. Finally, William Blair Investment Management LLC bought a new position in Onto Innovation in the 2nd quarter worth about $251,812,000. Institutional investors and hedge funds own 98.35% of the company’s stock.

About Onto Innovation

Onto Innovation Inc (NYSE: ONTO) develops process control and inspection equipment used by semiconductor manufacturers and advanced packaging companies. Its products help customers monitor, measure and improve manufacturing processes throughout the production of integrated circuits, wafers and packaged semiconductor devices.

The company offers optical metrology systems, wafer and macro-defect inspection tools, advanced packaging inspection and metrology solutions, lithography systems, and process control software.