What 7 Analyst Ratings Have To Say About Onto Innovation

Providing a diverse range of perspectives from bullish to bearish, 7 analysts have published ratings on Onto Innovation ONTO in the last three months.

Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.

In the assessment of 12-month price targets, analysts unveil insights for Onto Innovation, presenting an average target of $232.14, a high estimate of $250.00, and a low estimate of $175.00. Observing a downward trend, the current average is 7.14% lower than the prior average price target of $250.00.

Breaking Down Analyst Ratings: A Detailed Examination

An in-depth analysis of recent analyst actions unveils how financial experts perceive Onto Innovation. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Onto Innovation. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Onto Innovation compared to the broader market.
• Price Targets: Analysts set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.

Capture valuable insights into Onto Innovation's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with our Ratings Table.

Stay up to date on Onto Innovation analyst ratings.

Discovering Onto Innovation: A Closer Look

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 sources of total revenue.

Onto Innovation: Financial Performance Dissected

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

Positive Revenue Trend: Examining Onto Innovation's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 20.6% as of 31 December, 2024, showcasing a substantial increase in 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 net margin is impressive, surpassing industry averages. With a net margin of 18.5%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Onto Innovation's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 2.55% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): Onto Innovation's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 2.33%, the company showcases efficient use of assets and strong financial health.

Debt Management: Onto Innovation's debt-to-equity ratio is below the industry average. With a ratio of 0.01, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

The Significance of Analyst Ratings Explained

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.

Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

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