The Analyst Verdict: Onto Innovation In The Eyes Of 4 Experts

In the latest quarter, 4 analysts provided ratings for Onto Innovation ONTO, showcasing a mix of bullish and bearish perspectives.

The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.

Analysts have recently evaluated Onto Innovation and provided 12-month price targets. The average target is $258.75, accompanied by a high estimate of $275.00 and a low estimate of $230.00. This current average has increased by 6.34% from the previous average price target of $243.33.

Interpreting Analyst Ratings: A Closer Look

The standing of Onto Innovation among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Onto Innovation. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Onto Innovation compared to the broader market.
• Price Targets: Analysts navigate through adjustments in price targets, providing estimates for Onto Innovation's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.

To gain a panoramic view of Onto Innovation's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.

Stay up to date on Onto Innovation analyst ratings.

Unveiling the Story Behind Onto Innovation

Onto Innovation Inc is engaged in the design, development, manufacture, and support of high-performance control metrology, defect inspection, lithography, and data analysis systems used by microelectronics device manufacturers. The Company and its subsidiaries currently operate in a single operating segment. The company mainly operates in the United States, Southeast Asia, China, Japan, and Europe, with Taiwan and South Korea the largest sources of total revenue.

Financial Insights: Onto Innovation

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Growth: Onto Innovation's revenue growth over a period of 3 months has been noteworthy. As of 30 June, 2024, the company achieved a revenue growth rate of approximately 27.1%. This indicates a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Information Technology sector.

Net Margin: Onto Innovation's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 21.85%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): Onto Innovation's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of 2.93%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): Onto Innovation's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 2.67% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.01.

The Basics of Analyst Ratings

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.