Onto Innovation slides 5% as investors parse Q1 profitability and the planned $710M Rigaku stake purchase

Onto Innovation (ONTO) is down 5.0% today. Here is some analysis on what might have caused this price movement.

Analysis: The decline appears tied to a post-earnings reaction where investors focused on lower GAAP profitability versus last year, despite record revenue and upbeat second-quarter targets. The recently announced plan to spend about $710 million for a minority stake in Rigaku (including financing arrangements) may also be weighing on sentiment as shareholders assess capital allocation and execution risk.

Details:

Onto reported record Q1 2026 revenue of about $292 million, but GAAP gross margin (50.1%) and GAAP operating margin (11.5%) were lower than the prior-year quarter.

Q1 GAAP diluted EPS was $0.67 (non-GAAP diluted EPS was $1.42), which may have contributed to concerns about reported earnings power and mix.

For Q2 2026, Onto guided revenue to $320–$330 million and non-GAAP diluted EPS to $1.65–$1.73, setting a high bar for continued execution.

Onto signed a definitive agreement to buy a 27% stake in Rigaku for roughly $710 million, with closing expected in the second half of 2026, and arranged a senior secured bridge facility of up to $500 million in connection with the transaction.

Sources:

Onto Innovation Investor Relations, SEC, StreetInsider

Disclaimer: This price movement analysis was generated with the help of AI. Please double-check the information provided for mistakes.

$ONTO Hedge Fund Activity

We have seen 248 institutional investors add shares of $ONTO stock to their portfolio, and 259 decrease their positions in their most recent quarter.

Here are some of the largest recent moves:

JENNISON ASSOCIATES LLC added 631,965 shares (+1293.5%) to their portfolio in Q4 2025, for an estimated $99,761,994
D. E. SHAW & CO., INC. removed 485,621 shares (-48.4%) from their portfolio in Q4 2025, for an estimated $76,660,131
AQR CAPITAL MANAGEMENT LLC added 467,587 shares (+315.8%) to their portfolio in Q4 2025, for an estimated $73,813,283
UBS AM, A DISTINCT BUSINESS UNIT OF UBS ASSET MANAGEMENT AMERICAS LLC removed 433,217 shares (-74.8%) from their portfolio in Q4 2025, for an estimated $68,387,635
CHANNING CAPITAL MANAGEMENT, LLC added 388,883 shares (+299.1%) to their portfolio in Q4 2025, for an estimated $61,389,070
ALTA PARK CAPITAL, LP removed 381,831 shares (-75.7%) from their portfolio in Q4 2025, for an estimated $60,275,841
FMR LLC removed 378,864 shares (-45.6%) from their portfolio in Q4 2025, for an estimated $59,807,471

To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard. You can access data on hedge funds moves and 13F filings through the Quiver Quantitative API.

$ONTO Government Contracts

We have seen $4,628,905 of award payments to $ONTO over the last year.

Here are some of the awards which we have have seen pay out the most over the last year:

SEISMIC EQUIPMENT: $743,858
SEISMIC EQUIPMENT: $641,302
SEISMIC EQUIPMENT: $310,216
SEISMIC EQUIPMENT: $241,990

To track government contracts to publicy traded companies, check out Quiver Quantitative's government contracts dashboard.

$ONTO Analyst Ratings

Wall Street analysts have issued reports on $ONTO in the last several months. We have seen 2 firms issue buy ratings on the stock, and 0 firms issue sell ratings.

Here are some recent analyst ratings:

Needham issued a "Buy" rating on 01/20/2026
B. Riley Securities issued a "Buy" rating on 01/15/2026

To track analyst ratings and price targets for $ONTO, check out Quiver Quantitative's $ONTO forecast page.

$ONTO Price Targets

Multiple analysts have issued price targets for $ONTO recently. We have seen 7 analysts offer price targets for $ONTO in the last 6 months, with a median target of $330.0.

Here are some recent targets:

Charles Shi from Needham set a target price of $330.0 on 05/06/2026
Brian Chin from Stifel set a target price of $350.0 on 04/17/2026
Mark Lipacis from Evercore ISI Group set a target price of $315.0 on 04/17/2026
Edward Yang from Oppenheimer set a target price of $350.0 on 04/17/2026
Craig Ellis from B. Riley Securities set a target price of $330.0 on 04/17/2026
Matthew Prisco from Cantor Fitzgerald set a target price of $300.0 on 04/06/2026
Blayne Curtis from Jefferies set a target price of $200.0 on 12/15/2025

This article is not financial advice. See Quiver Quantitative's disclaimers for more information. Note that there may be inaccuracies due to mistakes in ticker-mapping, and other anomalies.