Rosenblatt Securities Has Lowered Expectations for onsemi (NASDAQ:ON) Stock Price

Key Points

• Rosenblatt Securities cut its onsemi price target from $85 to $80 while maintaining a neutral rating, implying roughly 14% upside from the reported $70.11 share price.
• Analyst sentiment remains broadly positive, with onsemi carrying a “Moderate Buy” consensus rating and an average target price of $91.81; ratings range from Hold to Buy.
• Recent results exceeded expectations, with revenue up 11.1% year over year to $1.72 billion and EPS of $0.90 versus $0.88 expected. The company also reported accelerating AI data-center demand and plans to acquire Ferric to strengthen its AI power-delivery business.

onsemi (NASDAQ:ON - Get Free Report) had its price objective decreased by research analysts at Rosenblatt Securities from $85.00 to $80.00 in a report issued on Tuesday, Benzinga reports. The brokerage currently has a "neutral" rating on the semiconductor company's stock. Rosenblatt Securities's target price suggests a potential upside of 14.11% from the company's current price.

A number of other research analysts have also commented on ON. Seaport Research Partners started coverage on shares of onsemi in a research note on Tuesday, September 22nd. They issued a "buy" rating and a $100.00 price objective on the stock. Needham & Company LLC reissued a "buy" rating and set a $116.00 price target on shares of onsemi in a report on Tuesday. Stifel Nicolaus boosted their price objective on shares of onsemi from $75.00 to $80.00 and gave the company a "hold" rating in a research note on Monday, October 5th. UBS Group reaffirmed a "neutral" rating on shares of onsemi in a report on Thursday, September 17th. Finally, Craig Hallum raised onsemi from a "hold" rating to a "buy" rating and set a $85.00 target price for the company in a research note on Tuesday. One research analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and fifteen have given a Hold rating to the company's stock. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $91.81.

onsemi Price Performance

ON stock opened at $70.11 on Tuesday. The company has a current ratio of 3.46, a quick ratio of 2.49 and a debt-to-equity ratio of 0.51. The company has a market capitalization of $27.29 billion, a P/E ratio of 44.94, a PEG ratio of 0.62 and a beta of 2.05. The business has a 50 day simple moving average of $74.67 and a 200-day simple moving average of $82.02. onsemi has a twelve month low of $44.56 and a twelve month high of $134.92.

onsemi (NASDAQ:ON - Get Free Report) last announced its earnings results on Monday, November 2nd. The semiconductor company reported $0.90 EPS for the quarter, beating analysts' consensus estimates of $0.88 by $0.02. onsemi had a net margin of 10.17% and a return on equity of 14.06%. The business had revenue of $1.72 billion for the quarter, compared to analysts' expectations of $1.71 billion. During the same period in the previous year, the company posted $0.63 EPS. The company's quarterly revenue was up 11.1% on a year-over-year basis. As a group, equities analysts anticipate that onsemi will post 3.21 EPS for the current year.

Insider Buying and Selling

In related news, insider Sudhir Gopalswamy sold 15,578 shares of the 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 transaction, the insider directly owned 158,177 shares in the company, valued at approximately $12,654,160. This represents a 8.97% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 0.35% of the company's stock.

Hedge Funds Weigh In On onsemi

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

Key Stories Impacting onsemi

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

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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