Nova Measuring Instruments Ltd (NASDAQ:NVMI) announced its fourth-quarter earnings on Thursday, reporting earnings per share (EPS) of $2.14. This figure surpassed analysts’ expectations of $2.13 by a narrow margin of $0.01, according to FiscalAI. The semiconductor company achieved a strong return on equity of 24.09% and a net margin of 28.73%.
The company generated revenue of $222.62 million during the quarter, exceeding the forecast of $220.43 million. This marks a 14.3% increase in revenue compared to the same quarter last year, when Nova reported an EPS of $1.94. Following the earnings release, Nova updated its guidance for the first quarter of 2026 to an estimated EPS range of $2.130 to $2.250.
Stock Performance and Market Activity
On the day of the earnings announcement, shares of Nova traded down by $37.68, reaching $438.16 during trading hours. The stock had a trading volume of 402,459 shares, which is below its average volume of 436,822. Currently, Nova holds a market capitalization of $12.88 billion and demonstrates a price-to-earnings (P/E) ratio of 57.30. The company’s debt-to-equity ratio stands at 0.62, while it maintains a quick ratio of 4.00 and a current ratio of 4.58. Over the past year, the stock has fluctuated significantly, with a 52-week low of $153.99 and a high of $507.27.
Institutional Investor Activity
Recent trading activity indicates a notable interest from institutional investors in Nova. Wasatch Advisors LP increased its holdings by 4.9% during the second quarter, acquiring an additional 102,250 shares, bringing its total ownership to 2,200,948 shares valued at $605.7 million. Additionally, Invesco Ltd. raised its stake by 185.4% in the third quarter, purchasing an additional 394,544 shares, resulting in ownership of 607,344 shares worth $194.1 million.
Other significant moves include Lazard Asset Management LLC, which boosted its holdings by 69.2% during the second quarter, now owning 359,221 shares valued at $98.9 million, and Nuveen LLC, which increased its position by 1.7% in the fourth quarter, now holding 148,549 shares worth $49.7 million. Currently, approximately 82.99% of Nova’s stock is owned by hedge funds and institutional investors.
Nova Measuring Instruments, founded in 1993 and headquartered in Rehovot, Israel, specializes in developing advanced metrology and process control systems for the semiconductor manufacturing sector. Its product offerings include spectroscopic ellipsometry and scatterometry tools that measure critical parameters essential for the yield and performance of integrated circuits. Nova has solidified its position as a key partner for leading semiconductor foundries and device manufacturers, highlighting its importance in the industry.
As Nova continues to navigate the competitive semiconductor landscape, the recent earnings results and institutional interest suggest a robust outlook for the company moving forward.
