Bridge City Capital Loads Up Onto Innovation Stock With Over 31,000 Shares

Bridge City Capital, LLC, increased its stake in Onto Innovation,(NYSE:ONTO) according to an SEC filing for the period ended September 30, 2025.

What happened

Bridge City Capital, LLC disclosed an increase in its Onto Innovation stake in a United States Securities and Exchange Commission (SEC) Form 13F filed on November 12, 2025 (link). The fund acquired 31,096 additional shares during the third quarter, lifting its total holding to 47,342 shares and a market value of $6.12 million as of September 30, 2025.

What else to know

• Bridge City Capital, LLC increased its Onto Innovation position, which now represents 1.63% of its 13F reportable assets under management
• Top five holdings post-filing:
  • NASDAQ:ENSG: $12.25 million (3.27% of AUM)
  • NASDAQ:STRL: $11.50 million (3.07% of AUM)
  • NYSE:GBCI: $8.42 million (2.25% of AUM)
  • NASDAQ:PCRX: $8.03 million (2.14% of AUM)
  • NASDAQ:DORM: $7.64 million (2.04% of AUM)
• As of November 11, 2025, Onto Innovation shares were priced at $133.44, down 23.59% over the past year, underperforming the S&P 500 by 38.39 percentage points

Company Overview

Company Snapshot

• Provides process control tools for macro defect inspection, 2D/3D optical metrology, lithography systems, and process control analytical software, with additional revenue from spare parts and software licensing.
• Generates revenue primarily through the sale of standalone systems and software solutions for process and yield management in semiconductor manufacturing and advanced packaging.
• Serves semiconductor and advanced packaging device manufacturers, as well as customers in silicon wafer, LED, MEMS, CMOS image sensor, power device, RF filter, and data storage segments globally.

Onto Innovation Inc. is a leading provider of process control and metrology solutions for the semiconductor industry, leveraging advanced inspection and analytical technologies to support yield management and manufacturing efficiency. The company operates at scale with over 1,500 employees and a global customer base, emphasizing innovation in both hardware and software offerings. Its competitive edge is rooted in a diversified product portfolio and deep integration with critical manufacturing processes in the technology sector.

Foolish take

Onto Innovation is a long-time holding of Bridge City Capital. However, over the last year, the share count has climbed from just over 8,000 shares one year ago to the current holding of more than 47,000 shares.

It was likely that Bridge City considered the heavy demand for AI chips when it made this addition. Knowing that, the increased interest in a semiconductor process control company should not come as a surprise.

Moreover, it has appeared more lucrative given the fact that the stock lost more than half of its value between January and May. At such levels, the P/E ratio was near the S&P 500 average of 31, and its forward P/E ratio was in the low 20s, meaning the fund may have seen a lucrative buying opportunity in Onto stock.

That low valuation may explain why Onto stock was its largest purchase in Q3, which is notable considering the 108 different stocks in the fund. Additionally, it invests in a variety of sectors, which may further emphasize the opportunity Bridge City found in this company.

Glossary

13F reportable assets: Assets that institutional investment managers must report quarterly to the SEC using Form 13F.
Assets under management (AUM): The total market value of investments managed by a fund or investment firm.
Position: The amount of a particular security or asset held by an investor or fund.
Stake: The ownership interest or share an investor holds in a company.
Process control: Techniques and tools used to monitor and manage manufacturing processes for quality and efficiency.
Metrology: The science of measurement, often used in manufacturing to ensure product quality and precision.
Lithography systems: Equipment used to transfer patterns onto semiconductor wafers during chip manufacturing.
Yield management: Strategies and tools to maximize the number of usable products from a manufacturing process.
Advanced packaging: Technologies that improve the performance and integration of semiconductor devices beyond traditional packaging methods.
TTM: The 12-month period ending with the most recent quarterly report.
MEMS: Micro-Electro-Mechanical Systems; tiny devices combining electrical and mechanical components, often used in sensors.
RF filter: A device that allows certain radio frequencies to pass while blocking others, used in wireless communication systems.

Will Healy has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Sterling Infrastructure. The Motley Fool has a disclosure policy.