Needham & Company LLC Forecasts Strong Price Appreciation for Onto Innovation (NYSE:ONTO) Stock

Onto Innovation (NYSE:ONTO) had its price target increased by Needham & Company LLC from $260.00 to $275.00 in a note issued to investors on Friday,Benzinga reports. The brokerage currently has a “buy” rating on the semiconductor company’s stock. Needham & Company LLC’s price target points to a potential upside of 27.65% from the company’s previous close.

Several other research firms have also issued reports on ONTO. Zacks Research upgraded Onto Innovation from a “hold” rating to a “strong-buy” rating in a research report on Wednesday, December 31st. Evercore reissued an “outperform” rating and set a $250.00 price objective on shares of Onto Innovation in a research note on Thursday. Jefferies Financial Group boosted their price objective on shares of Onto Innovation from $170.00 to $200.00 and gave the company a “buy” rating in a report on Monday, December 15th. B. Riley Financial increased their target price on shares of Onto Innovation from $180.00 to $240.00 and gave the stock a “buy” rating in a report on Thursday, January 15th. Finally, Cantor Fitzgerald raised shares of Onto Innovation from a “neutral” rating to an “overweight” rating and lifted their price target for the stock from $170.00 to $275.00 in a research report on Monday, February 16th. One equities research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and two have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $252.50.

Onto Innovation Price Performance

Shares of NYSE:ONTO opened at $215.44 on Friday. The stock has a market cap of $10.56 billion, a price-to-earnings ratio of 77.78, a P/E/G ratio of 1.19 and a beta of 1.50. The company has a 50 day moving average of $192.29 and a 200-day moving average of $149.84. Onto Innovation has a one year low of $85.88 and a one year high of $232.49.

Onto Innovation (NYSE:ONTO) last announced its quarterly earnings data on Thursday, February 19th. The semiconductor company reported $1.26 earnings per share for the quarter, missing the consensus estimate of $1.28 by ($0.02). Onto Innovation had a net margin of 13.60% and a return on equity of 12.41%. The business had revenue of $266.87 million during the quarter, compared to analyst estimates of $265.78 million. During the same quarter in the prior year, the company earned $1.51 earnings per share. The company’s quarterly revenue was up 1.1% on a year-over-year basis. Onto Innovation has set its Q1 2026 guidance at 1.260-1.360 EPS. Equities research analysts anticipate that Onto Innovation will post 6.26 earnings per share for the current year.

Institutional Investors Weigh In On Onto Innovation

Institutional investors have recently added to or reduced their stakes in the stock. Parallel Advisors LLC raised its stake in shares of Onto Innovation by 20.6% in the 4th quarter. Parallel Advisors LLC now owns 339 shares of the semiconductor company’s stock valued at $54,000 after purchasing an additional 58 shares during the period. Root Financial Partners LLC grew its holdings in shares of Onto Innovation by 71.2% during the fourth quarter. Root Financial Partners LLC now owns 178 shares of the semiconductor company’s stock worth $28,000 after buying an additional 74 shares in the last quarter. Vanguard Personalized Indexing Management LLC grew its holdings in shares of Onto Innovation by 1.5% during the third quarter. Vanguard Personalized Indexing Management LLC now owns 4,974 shares of the semiconductor company’s stock worth $643,000 after buying an additional 75 shares in the last quarter. Amalgamated Bank raised its position in Onto Innovation by 0.3% in the 3rd quarter. Amalgamated Bank now owns 22,663 shares of the semiconductor company’s stock valued at $2,929,000 after buying an additional 79 shares during the last quarter. Finally, Campbell Newman Asset Management Inc. lifted its stake in Onto Innovation by 0.4% in the 3rd quarter. Campbell Newman Asset Management Inc. now owns 18,880 shares of the semiconductor company’s stock valued at $2,440,000 after acquiring an additional 80 shares in the last quarter. 98.35% of the stock is owned by institutional investors.

Onto Innovation News Summary

Here are the key news stories impacting Onto Innovation this week:

• Positive Sentiment: Company posted record 2025 revenue, completed the Semilab product‑line acquisition, shipped next‑gen Dragonfly systems and disclosed a major HBM agreement that management says is driving AI/inspection demand. Onto Innovation Reports 2025 Fourth Quarter and Full Year Results
• Positive Sentiment: Analyst support: Needham raised its price target to $275 and kept a Buy rating, signaling continued bullish institutional views that could underpin shares over the medium term. Benzinga article
• Neutral Sentiment: Management guided Q1 FY2026 EPS to $1.260–1.360 and revenue to $275–285M, which sits slightly above consensus — that guidance implies margin recovery but leaves room for execution risk. Company press release / guidance
• Neutral Sentiment: Management projects >30% growth in advanced‑packaging sales in 2026 and cites a record backlog tied to AI demand — a positive long‑term growth signal but dependent on sustained end‑market strength. Advanced packaging growth article
• Negative Sentiment: Q4 EPS of $1.26 missed the consensus by $0.02 and fell from $1.51 a year ago — the modest miss and y/y earnings decline are the immediate catalyst for the share pullback. Zacks: ONTO misses Q4 estimates
• Negative Sentiment: Shares are trading with elevated volume into the print and remain at a premium valuation (high P/E), so even small earnings misses or execution risk can trigger outsized moves. Investing.com note

About Onto Innovation

Onto Innovation (NYSE:ONTO) is a global supplier of advanced process control and inspection systems for semiconductor and electronics manufacturers. The company’s solutions span metrology, inspection, defect review and lithography mask repair, helping customers optimize yield, reduce costs and improve device performance. By integrating high-resolution optical and e-beam tools with sophisticated software analytics, Onto Innovation enables wafer, mask and advanced packaging producers to maintain tight process control across leading-edge nodes and specialty applications.

Key products include high-throughput wafer metrology systems, optical and e-beam defect inspection platforms, mask inspection and repair tools, and data-driven software for yield management and process optimization.