Mark Slicer, the Chief Financial Officer of Onto Innovation Inc. (NYSE:ONTO), has sold 1,100 shares of the company's common stock. The transaction, which took place on November 15, 2024, was executed at an average price of $160.41 per share, amounting to a total sale value of $176,451.
Following this sale, Slicer retains ownership of 10,933 shares in the company. The transaction was carried out under a pre-arranged trading plan, known as a Rule 10b5-1 plan, which Slicer had adopted on August 16, 2024. These plans allow company insiders to set up a predetermined schedule for selling stocks to avoid any accusations of insider trading.
In other recent news, Onto Innovation, a prominent player in advanced lithography and inspection equipment, reported a record Q3 revenue of $252 million, a 22% increase from the previous year. This impressive financial performance was accompanied by a gross margin of 54.5% and a record cash generation of $67 million from operations. Despite a $10 million delay in JetStep lithography revenue, the company expects its inspection revenue to nearly double this year.
Onto Innovation has also been making strategic acquisitions to expand its market and revenue potential, projecting substantial growth in the upcoming quarters. The company's Q4 revenue is forecasted between $253 million and $267 million, with gross margins of 54% to 55%. Operating expenses are projected to be between $66 million and $68 million.
These recent developments indicate a positive outlook for 2025, with strong demand in advanced packaging and process control. However, Onto Innovation's CEO, Michael Plisinski, did express some uncertainties in the High Bandwidth (NASDAQ:BAND) Memory (HBM) segment. Despite this, the company's strategic acquisitions and capacity to increase output position it well to capitalize on market opportunities and navigate the challenges ahead.
InvestingPro Insights
The recent stock sale by Onto Innovation's CFO Mark Slicer comes at a time when the company's shares have experienced significant volatility. According to InvestingPro data, Onto Innovation's stock has seen a 24.36% decline over the past month and a 29.06% drop in the last six months. This downward trend is reflected in an InvestingPro Tip indicating that the stock's Relative Strength Index (RSI) suggests it may be in oversold territory.
Despite the recent price decline, Onto Innovation maintains a strong financial position. The company boasts a market capitalization of $7.93 billion and has demonstrated solid revenue growth, with a 21.73% increase in quarterly revenue as of Q3 2024. Additionally, an InvestingPro Tip highlights that Onto Innovation holds more cash than debt on its balance sheet, indicating financial stability.
Investors should note that while the stock is trading at a high P/E ratio of 43.32, the company remains profitable, with a gross profit margin of 52.13% and an operating income margin of 18.38% over the last twelve months. These metrics suggest that despite recent stock performance, Onto Innovation's underlying business fundamentals remain strong.
For readers interested in a more comprehensive analysis, InvestingPro offers 17 additional tips for Onto Innovation, providing a deeper understanding of the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.