onsemi (NASDAQ:ON) Given New $80.00 Price Target at Citigroup

Key Points

• Citigroup cut its onsemi price target from $98 to $80 while maintaining a neutral rating; the new target implies 12.3% upside from the prior close.
• onsemi beat quarterly estimates with adjusted EPS of $0.90 and revenue of $1.72 billion, up 11% year over year. AI data-center revenue surged 175%, and the company is acquiring Ferric to expand power-delivery technology for AI processors.
• AI growth contrasts with automotive weakness: onsemi has delayed some automakers’ inventory orders as it prioritizes AI and industrial customers. Across analysts, the stock has a “Moderate Buy” consensus and an average target of $95.03.

onsemi (NASDAQ:ON - Get Free Report) had its price target reduced by analysts at Citigroup from $98.00 to $80.00 in a research report issued to clients and investors on Wednesday, Benzinga reports. The firm currently has a "neutral" rating on the semiconductor company's stock. Citigroup's target price points to a potential upside of 12.30% from the stock's previous close.

ON has been the topic of several other reports. Robert W. Baird increased their target price on onsemi from $100.00 to $108.00 and gave the company a "neutral" rating in a research note on Tuesday, August 4th. Stonex Financia raised onsemi to a "strong-buy" rating in a report on Wednesday, October 14th. The Goldman Sachs Group dropped their price objective on onsemi from $95.00 to $85.00 in a research report on Tuesday. Weiss Ratings upgraded onsemi from a "sell (d+)" rating to a "hold (c)" rating in a report on Friday, August 7th. Finally, Sanford C. Bernstein reissued an "outperform" rating and issued a $62.00 target price on shares of onsemi in a research report on Wednesday, August 12th. One analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and sixteen have issued a Hold rating to the company's stock. According to data from MarketBeat.com, onsemi has an average rating of "Moderate Buy" and an average target price of $95.03.

onsemi Stock Down 1.9%

ON stock traded down $1.36 during trading on Wednesday, hitting $71.24. 10,701,896 shares of the stock traded hands, compared to its average volume of 10,534,641. onsemi has a 1 year low of $44.56 and a 1 year high of $134.92. The firm's 50 day moving average is $74.68 and its two-hundred day moving average is $82.08. The stock has a market cap of $27.73 billion, a price-to-earnings ratio of 41.42, a price-to-earnings-growth ratio of 0.58 and a beta of 2.11. The company has a debt-to-equity ratio of 0.51, a current ratio of 3.46 and a quick ratio of 2.49.

onsemi (NASDAQ:ON - Get Free Report) last issued its earnings results on Monday, November 2nd. The semiconductor company reported $0.90 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.88 by $0.02. onsemi had a net margin of 10.82% and a return on equity of 15.61%. The business had revenue of $1.72 billion during the quarter, compared to analysts' expectations of $1.71 billion. During the same period in the previous year, the company earned $0.63 earnings per share. The business's revenue for the quarter was up 11.1% compared to the same quarter last year. On average, sell-side analysts anticipate that onsemi will post 3.21 EPS for the current year.

Insider Buying and Selling at onsemi

In other news, insider Sudhir Gopalswamy sold 15,578 shares of the firm's stock in a transaction on Thursday, October 1st. The stock was sold at an average price of $80.00, for a total value of $1,246,240.00. Following the transaction, the insider directly owned 158,177 shares in the company, valued at $12,654,160. This trade represents a 8.97% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.35% of the stock is owned by insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the company. Provenance Wealth Advisors LLC raised its position in shares of onsemi by 3,318.2% during the third quarter. Provenance Wealth Advisors LLC now owns 376 shares of the semiconductor company's stock valued at $29,000 after buying an additional 365 shares during the last quarter. Ninety One UK Ltd purchased a new position in shares of onsemi in the third quarter worth $36,000. Ascentis Independent Advisors bought a new position in shares of onsemi during the first quarter worth $36,000. Root Financial Partners LLC boosted its position in shares of onsemi by 39.4% during the first quarter. Root Financial Partners LLC now owns 701 shares of the semiconductor company's stock worth $43,000 after acquiring an additional 198 shares during the last quarter. Finally, Compass Financial Management LLC purchased a new position in onsemi during the second quarter valued at $67,000. 97.70% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting onsemi

Here are the key news stories impacting onsemi this week:

• Positive Sentiment: AI opportunity is expanding: AI data-center revenue jumped 175% year over year. onsemi agreed to acquire Ferric for $600 million in cash, plus up to $175 million tied to milestones, to add integrated voltage-regulator technology for AI processors. The deal lifts its 2030 AI data-center revenue target by $500 million to more than $3 billion. onsemi Ferric acquisition announcement
• Positive Sentiment: Q3 results and Q4 guidance were encouraging: onsemi reported adjusted EPS of $0.90 and revenue of $1.72 billion, with revenue up 11% year over year. Its Q4 adjusted EPS guidance of $0.95–$1.07 came in above the $0.88 consensus midpoint comparison cited in coverage, while the company also pointed to improving industrial demand and manufacturing efficiencies. onsemi earnings and guidance report
• Negative Sentiment: Automotive remains a near-term headwind: onsemi is prioritizing AI and industrial customers and has temporarily delayed some automakers’ inventory orders, signaling that auto restocking is not yet a reliable growth driver. TheStreet report on auto restocking and AI sales
• Negative Sentiment: Analyst target cuts may temper enthusiasm: Evercore, Goldman Sachs and Mizuho lowered their price targets after the results, reflecting caution about the balance between AI growth and automotive risks. The reductions may add pressure even as the targets remain above the recent trading level. Evercore analyst recommendation information

onsemi Company Profile

onsemi is engaged in disruptive innovations and also a supplier of power and analog semiconductors. The firm offers vehicle electrification and safety, sustainable energy grids, industrial automation, and 5G and cloud infrastructure, with a focus on automotive and industrial end-markets. It operates through the following segments: Power Solutions Group, Advanced Solutions Group, and Intelligent Sensing Group. The Power Solutions Group segment offers discrete, module, and semiconductor products that perform multiple application functions, including power switching, power conversion, signal conditioning, circuit protection, signal amplification, and voltage reference functions.

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