onsemi (NASDAQ:ON) Stock Rating Raised to Buy at Craig Hallum

Key Points

• Craig Hallum upgraded onsemi to “Buy” from “Hold” and set an $85 price target, implying approximately 21% upside from the prior close. MarketBeat analysts maintain a consensus “Moderate Buy” rating with a $91.81 target.
• onsemi reported stronger-than-expected quarterly results, with revenue up 11.1% year over year to $1.72 billion and earnings of $0.90 per share versus the $0.88 consensus estimate.
• The company’s AI opportunity is expanding: onsemi agreed to acquire Ferric for up to $775 million and raised its 2030 AI data-center revenue target by $500 million to more than $3 billion, though integration and broader semiconductor-demand risks remain.

onsemi (NASDAQ:ON - Get Free Report) was upgraded by equities researchers at Craig Hallum from a "hold" rating to a "buy" rating in a note issued to investors on Tuesday, MarketBeat.com reports. The firm currently has a $85.00 price objective on the semiconductor company's stock. Craig Hallum's target price would indicate a potential upside of 21.24% from the company's previous close.

Several other equities research analysts also recently commented on ON. Robert W. Baird upped their price objective on shares of onsemi from $100.00 to $108.00 and gave the company a "neutral" rating in a report on Tuesday, August 4th. TD Cowen reduced their target price on shares of onsemi from $95.00 to $75.00 and set a "hold" rating for the company in a research note on Monday, October 19th. B. Riley Financial lowered their price target on shares of onsemi from $127.00 to $105.00 and set a "buy" rating on the stock in a research report on Thursday, October 22nd. Rosenblatt Securities restated a "neutral" rating and set a $85.00 price target on shares of onsemi in a research note on Thursday, September 17th. Finally, UBS Group reaffirmed a "neutral" rating on shares of onsemi in a report on Thursday, September 17th. One research analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and fifteen have given a Hold rating to the stock. Based on data from MarketBeat.com, onsemi has a consensus rating of "Moderate Buy" and a consensus price target of $91.81.

onsemi Stock Performance

NASDAQ:ON opened at $70.11 on Tuesday. The company has a market capitalization of $27.29 billion, a P/E ratio of 44.94, a P/E/G ratio of 0.62 and a beta of 2.05. The business has a fifty day simple moving average of $74.67 and a two-hundred day simple moving average of $82.02. 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 has a 1 year low of $44.56 and a 1 year high of $134.92.

onsemi (NASDAQ:ON - Get Free Report) last posted its quarterly earnings results on Monday, November 2nd. The semiconductor company reported $0.90 earnings per share for the quarter, topping the consensus estimate of $0.88 by $0.02. onsemi had a return on equity of 14.06% and a net margin of 10.17%. The company had revenue of $1.72 billion during the quarter, compared to the consensus estimate of $1.71 billion. During the same quarter in the prior year, the company earned $0.63 EPS. The firm's quarterly revenue was up 11.1% compared to the same quarter last year. On average, analysts expect that onsemi will post 3.21 earnings per share for the current year.

Insiders Place Their Bets

In other news, insider Sudhir Gopalswamy sold 15,578 shares of the company's stock in a transaction dated Thursday, October 1st. The stock was sold at an average price of $80.00, for a total transaction of $1,246,240.00. Following the sale, the insider directly owned 158,177 shares in the company, valued at $12,654,160. This represents a 8.97% decrease in their ownership of the stock. The sale 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.

Hedge Funds Weigh In On onsemi

A number of large investors have recently modified their holdings of ON. Greenleaf Trust lifted its stake in onsemi by 2.5% in the 3rd quarter. Greenleaf Trust now owns 5,890 shares of the semiconductor company's stock worth $453,000 after purchasing an additional 144 shares in the last quarter. V Square Quantitative Management LLC boosted its holdings in onsemi by 2.7% in the 1st quarter. V Square Quantitative Management LLC now owns 5,946 shares of the semiconductor company's stock valued at $368,000 after purchasing an additional 157 shares during the period. Compound Planning Inc. grew its position in shares of onsemi by 3.9% during the 1st quarter. Compound Planning Inc. now owns 4,733 shares of the semiconductor company's stock valued at $293,000 after purchasing an additional 179 shares in the last quarter. Root Financial Partners LLC grew its position in shares of onsemi by 39.4% during the 1st quarter. Root Financial Partners LLC now owns 701 shares of the semiconductor company's stock valued at $43,000 after purchasing an additional 198 shares in the last quarter. Finally, Brookstone Capital Management increased its holdings in shares of onsemi by 5.6% in the third quarter. Brookstone Capital Management now owns 5,318 shares of the semiconductor company's stock worth $409,000 after purchasing an additional 284 shares during the period. 97.70% of the stock is currently owned by institutional investors.

Key onsemi News

Here are the key news stories impacting onsemi this week:

• Positive Sentiment: AI growth outlook raised: onsemi agreed to acquire Ferric, a developer of integrated voltage-regulator technology, for $600 million in cash plus up to $175 million in contingent consideration. The deal is expected to strengthen onsemi’s power-delivery position for next-generation AI processors and lift its 2030 AI data-center revenue target by $500 million to more than $3 billion. onsemi to Acquire Ferric
• Positive Sentiment: Quarterly results topped consensus: Third-quarter revenue rose 11.1% year over year to approximately $1.72 billion, while adjusted earnings were $0.90 per share versus estimates of $0.88. Cash flow also strengthened, with operating cash flow up 23% to $516 million and free cash flow up 31% to $489 million. onsemi Reports Third Quarter 2026 Results
• Positive Sentiment: AI demand is accelerating: Management said AI data-center revenue surged 175% year over year, helped by customer demand and supply constraints that redirected capacity toward the company’s differentiated products. Fourth-quarter revenue guidance of roughly $1.77 billion was reportedly above the analyst consensus. onsemi Q3 Earnings Call Highlights
• Neutral Sentiment: The Ferric acquisition could improve long-term revenue growth, gross margins and earnings per share, but it requires a substantial cash outlay and execution will be needed to integrate the technology and convert AI demand into sustained sales.
• Negative Sentiment: The positive results were not enough to satisfy elevated investor expectations. Reports indicate the stock weakened after the earnings release, suggesting the market may be focused on the pace of broader semiconductor recovery, valuation, and whether AI growth can offset softness in other end markets. Why onsemi Shares Fell Despite Earnings

About onsemi

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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