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

Key Points

• Citigroup lowered onsemi’s price target from $120 to $98 while maintaining a neutral rating, implying approximately 26% upside from the stock’s current price.
• Analyst sentiment remains mixed: the consensus rating is “Hold,” with an average price target of $100.62, despite several firms retaining Buy or Overweight ratings.
• onsemi reported quarterly revenue of $1.60 billion and EPS of $0.74, both slightly ahead of expectations, and issued third-quarter EPS guidance of $0.81–$0.93. Shares nevertheless fell 3.7% to $77.77 amid near-term supply and automotive-demand concerns.

onsemi (NASDAQ:ON - Get Free Report) had its price target lowered by research analysts at Citigroup from $120.00 to $98.00 in a report released on Wednesday,Benzinga reports. The firm presently has a "neutral" rating on the semiconductor company's stock. Citigroup's price target would indicate a potential upside of 26.01% from the stock's current price.

ON has been the subject of several other reports. Cantor Fitzgerald reiterated a "neutral" rating and set a $110.00 price objective on shares of onsemi in a research report on Friday. Jefferies Financial Group upped their price target on shares of onsemi from $73.00 to $115.00 and gave the company a "buy" rating in a research report on Tuesday, May 5th. B. Riley Financial decreased their price target on onsemi from $135.00 to $127.00 and set a "buy" rating for the company in a report on Tuesday. Wells Fargo & Company lowered their price objective on onsemi from $130.00 to $110.00 and set an "overweight" rating for the company in a research report on Tuesday. Finally, UBS Group reissued a "neutral" rating and issued a $95.00 price objective on shares of onsemi in a research note on Monday, June 29th. Fourteen research analysts have rated the stock with a Buy rating, fourteen have assigned a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Hold" and an average price target of $100.62.

onsemi Trading Down 3.7%

ON stock traded down $3.01 during trading on Wednesday, hitting $77.77. The company had a trading volume of 9,312,740 shares, compared to its average volume of 10,731,745. The stock has a market cap of $30.48 billion, a PE ratio of 55.11, a PEG ratio of 0.89 and a beta of 2.03. The business has a 50-day moving average of $103.36 and a 200-day moving average of $85.21. The company has a current ratio of 4.87, a quick ratio of 3.14 and a debt-to-equity ratio of 0.41. onsemi has a one year low of $44.56 and a one year high of $134.92.

onsemi (NASDAQ:ON - Get Free Report) last released its quarterly earnings results on Monday, August 3rd. The semiconductor company reported $0.74 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.72 by $0.02. The firm had revenue of $1.60 billion during the quarter, compared to analyst estimates of $1.59 billion. onsemi had a net margin of 10.17% and a return on equity of 13.87%. The company's revenue was up 9.2% compared to the same quarter last year. During the same quarter last year, the business earned $0.53 EPS. onsemi has set its Q3 2026 guidance at 0.810-0.930 EPS. Research analysts predict that onsemi will post 3.09 earnings per share for the current fiscal year.

Hedge Funds Weigh In On onsemi

Several institutional investors have recently made changes to their positions in the stock. Contravisory Investment Management Inc. acquired a new position in onsemi during the 2nd quarter worth approximately $1,553,000. Arista Wealth Management LLC bought a new position in onsemi in the second quarter worth approximately $284,000. Everhart Financial Group Inc. grew its stake in onsemi by 6.6% in the second quarter. Everhart Financial Group Inc. now owns 5,627 shares of the semiconductor company's stock valued at $532,000 after acquiring an additional 348 shares during the period. Quantum Financial Advisors LLC bought a new stake in shares of onsemi during the second quarter valued at approximately $242,000. Finally, Strategic Investment Solutions Inc. IL increased its holdings in shares of onsemi by 12.4% during the second quarter. Strategic Investment Solutions Inc. IL now owns 2,943 shares of the semiconductor company's stock valued at $278,000 after acquiring an additional 325 shares in the last quarter. Institutional investors and hedge funds own 97.70% of the company's stock.

onsemi News Roundup

Here are the key news stories impacting onsemi this week:

• Positive Sentiment: Quarterly beat and stronger outlook: onsemi reported second-quarter revenue of approximately $1.60 billion, up 9% year over year, while adjusted EPS of $0.74 exceeded consensus estimates. Third-quarter guidance calls for revenue of roughly $1.65 billion to $1.75 billion and adjusted EPS of $0.81 to $0.93, broadly ahead of expectations. onsemi Reports Second Quarter 2026 Results
• Positive Sentiment: AI momentum is accelerating: Management expects data-center revenue tied to AI to more than double in 2026. Demand for high-voltage power solutions and greater factory utilization are supporting revenue and margin expansion, while the company highlighted its NVIDIA MGX ecosystem role and planned Synaptics acquisition. ON Q2 Earnings Call Signals AI-Led Demand and Margin Lift
• Positive Sentiment: Cash generation and capital returns improved: Operating cash flow increased sharply, free cash flow reached approximately $425 million, and onsemi repurchased about $332 million of stock during the quarter. The company also completed a broader $678 million repurchase program. How ON’s Strong Q2 Results, AI Momentum and Buybacks Will Impact Investors
• Neutral Sentiment: Analyst sentiment remains mixed: Zacks upgraded onsemi (ON) to a Buy-equivalent Rank #2 on improving earnings prospects. However, Goldman Sachs maintained Hold, while several firms lowered price targets—including Mizuho to $110, Needham to $116 and Wells Fargo to $110—although most retained positive or neutral ratings. ON Semiconductor Moves to Buy
• Negative Sentiment: Near-term risks are tempering enthusiasm: onsemi said it prioritized AI data-center shipments over some automotive demand, while supply constraints could limit near-term upside. Investors may also be taking profits after the earnings-driven rally, particularly with the stock trading at a relatively elevated earnings multiple and some analysts viewing risk-reward as balanced. ON Semiconductor Rises After Solid Q2

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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