Onto Innovation Inc. (NYSE:ONTO) CEO Michael P. Plisinski has sold a significant amount of company stock, according to a recent filing with the Securities and Exchange Commission. The transactions, which took place on March 20, 2024, involved the sale of shares at varying prices, resulting in a total sale value of over $7 million.
The sales were executed in multiple transactions, with prices per share ranging from $172.83 to $178.16. These transactions were part of a pre-arranged trading plan under Rule 10b5-1, which allows company insiders to establish predetermined trading plans for selling stocks at a time when they are not in possession of material non-public information.
The series of sales began with a batch of 4,344 shares sold at an average price of $172.83 per share. This was followed by 6,270 shares sold at an average price of $173.96, and 2,060 shares at an average price of $174.79. The largest single transaction involved 22,596 shares sold at an average price of $176.00. Subsequent sales included 1,816 shares at an average price of $177.04 and a final batch of 2,914 shares at an average price of $178.16.
Following these sales, CEO Michael Plisinski still retains a significant amount of Onto Innovation stock, owning 235,492 shares directly. The sales represent a routine part of an executive's financial management strategy and are a common practice among company leaders.
Investors often monitor insider transactions for insights into the confidence levels of a company's management regarding the firm's future prospects. However, such sales do not necessarily indicate a change in company outlook, as they may also reflect personal financial planning decisions by the executives.
Onto Innovation Inc. specializes in measuring and controlling devices and is known for its contributions to the industrial applications and services sector. The company's stock is publicly traded on the New York Stock Exchange under the ticker symbol ONTO.
InvestingPro Insights
Onto Innovation Inc. (NYSE:ONTO) CEO's recent stock sale has drawn attention to the company's financial metrics. According to InvestingPro data, Onto Innovation has a market capitalization of approximately $9.01 billion, showcasing its significant presence in the industry. The company's P/E ratio, as of the last twelve months ending Q4 2023, stands at a high 74.35, indicating a premium market valuation compared to earnings. This high earnings multiple may suggest investor confidence in future growth or reflect a market premium for the company's technology and market position.
Despite a challenging revenue decline of 18.83% over the last twelve months as of Q4 2023, Onto Innovation maintains a robust gross profit margin of 51.51%, demonstrating its ability to retain a significant portion of sales as gross profit. This financial health is further underscored by an impressive one-year price total return of 113.85%, signaling strong market performance and investor optimism.
InvestingPro Tips highlight that Onto Innovation holds more cash than debt, which is a positive sign of financial stability. Additionally, analysts predict the company will be profitable this year, a forecast that aligns with the CEO's confidence in retaining a substantial number of shares post-transaction. For investors seeking further insights, there are 15 additional InvestingPro Tips available for Onto Innovation, which can be accessed through the InvestingPro platform at https://www.investing.com/pro/ONTO. Remember to use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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