Nova (NASDAQ:NVMI) to Buyback $200.00 million in Stock

Nova (NASDAQ:NVMI) declared that its board has initiated a share buyback plan on Wednesday, September 2nd, RTT News reports. The company plans to buyback $200.00 million in outstanding shares. This buyback authorization authorizes the semiconductor company to buy up to 1.9% of its stock through open market purchases. Stock buyback plans are often a sign that the company’s leadership believes its shares are undervalued.

Nova Stock Up 5.5%

Nova stock opened at $372.10 on Friday. The stock has a market cap of $11.83 billion, a P/E ratio of 46.05, a P/E/G ratio of 2.04 and a beta of 1.76. The company’s 50 day moving average price is $417.23 and its two-hundred day moving average price is $464.50. Nova has a 52 week low of $248.87 and a 52 week high of $615.99.

Nova (NASDAQ:NVMI) last issued its quarterly earnings results on Friday, August 7th. The semiconductor company reported $2.51 EPS for the quarter, topping analysts’ consensus estimates of $2.41 by $0.10. The business had revenue of $254.96 million for the quarter, compared to analyst estimates of $250.33 million. Nova had a return on equity of 21.41% and a net margin of 28.84%.Nova’s quarterly revenue was up 15.9% compared to the same quarter last year. During the same period last year, the company posted $2.20 earnings per share. On average, equities analysts anticipate that Nova will post 9.89 EPS for the current year.

Analysts Set New Price Targets

A number of research analysts have recently issued reports on NVMI shares. Wall Street Zen upgraded shares of Nova from a “sell” rating to a “hold” rating in a report on Saturday, May 16th. Weiss Ratings lowered Nova from a “hold (c+)” rating to a “hold (c)” rating in a report on Tuesday, July 7th. Citigroup lowered their price objective on Nova from $595.00 to $550.00 and set a “buy” rating for the company in a research note on Monday, August 10th. Needham & Company LLC dropped their target price on Nova from $640.00 to $570.00 and set a “buy” rating on the stock in a report on Friday, August 7th. Finally, Evercore set a $475.00 target price on Nova in a research report on Friday, August 7th. One research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat, Nova presently has an average rating of “Moderate Buy” and an average price target of $514.44.

Insider Activity at Nova

In other news, Director Yaniv Garty sold 366 shares of the stock in a transaction on Monday, June 22nd. The stock was sold at an average price of $581.20, for a total transaction of $212,719.20. Following the completion of the transaction, the director owned 2,006 shares in the company, valued at approximately $1,165,887.20. This represents a 15.43% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Sarit Sagiv sold 454 shares of the stock in a transaction dated Tuesday, June 23rd. The stock was sold at an average price of $536.52, for a total transaction of $243,580.08. Following the transaction, the director owned 1,951 shares of the company’s stock, valued at $1,046,750.52. This represents a 18.88% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 6,942 shares of company stock worth $3,419,027 in the last ninety days. Corporate insiders own 1.00% of the company’s stock.

About Nova

Nova Measuring Instruments Ltd (NASDAQ: NVMI) develops and supplies advanced metrology and process control systems for the semiconductor manufacturing industry. The company’s core product line includes spectroscopic ellipsometry and scatterometry tools designed to measure film thickness, critical dimensions, overlay alignment and other key parameters that drive yield and performance in integrated circuit fabrication.

Founded in 1993 and headquartered in Rehovot, Israel, Nova Measuring Instruments has established itself as a critical partner to leading semiconductor foundries and device manufacturers.