Baillie Gifford & Co. Makes New Investment in ON Semiconductor Corporation (NASDAQ:ON)

Key Points

• Baillie Gifford & Co. has made a significant investment of approximately $219 million in ON Semiconductor, acquiring over 5 million shares during the first quarter.
• ON Semiconductor recently reported an EPS of $0.55 for the quarter, exceeding estimates, but noted a 22.4% decline in revenue compared to the previous year.
• Analysts have mixed views on ON Semiconductor, with several firms adjusting their target prices, resulting in a current consensus rating of "Hold" and a price target of around $58.73.

Baillie Gifford & Co. purchased a new position in shares of ON Semiconductor Corporation (NASDAQ:ON - Free Report) in the 1st quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor purchased 5,382,186 shares of the semiconductor company's stock, valued at approximately $219,001,000. Baillie Gifford & Co. owned approximately 1.28% of ON Semiconductor as of its most recent SEC filing.

Several other large investors have also recently added to or reduced their stakes in the company. Janus Henderson Group PLC raised its holdings in ON Semiconductor by 9.2% during the fourth quarter. Janus Henderson Group PLC now owns 12,377,264 shares of the semiconductor company's stock worth $780,387,000 after purchasing an additional 1,041,989 shares in the last quarter. Norges Bank purchased a new position in ON Semiconductor in the fourth quarter valued at about $378,312,000. Allspring Global Investments Holdings LLC increased its holdings in ON Semiconductor by 26.3% in the first quarter. Allspring Global Investments Holdings LLC now owns 5,061,245 shares of the semiconductor company's stock valued at $203,462,000 after buying an additional 1,055,461 shares in the last quarter. Dimensional Fund Advisors LP increased its holdings in ON Semiconductor by 18.2% in the fourth quarter. Dimensional Fund Advisors LP now owns 5,014,671 shares of the semiconductor company's stock valued at $316,195,000 after buying an additional 771,610 shares in the last quarter. Finally, Capital International Investors increased its holdings in ON Semiconductor by 0.7% in the fourth quarter. Capital International Investors now owns 4,214,441 shares of the semiconductor company's stock valued at $265,737,000 after buying an additional 31,365 shares in the last quarter. 97.70% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

A number of analysts recently issued reports on ON shares. Roth Capital restated a "buy" rating and set a $70.00 target price (up previously from $50.00) on shares of ON Semiconductor in a research report on Tuesday, June 17th. Cantor Fitzgerald started coverage on shares of ON Semiconductor in a research report on Wednesday, June 18th. They set a "neutral" rating and a $55.00 target price on the stock. TD Cowen raised their target price on shares of ON Semiconductor from $38.00 to $44.00 and gave the stock a "buy" rating in a research report on Tuesday, May 6th. Mizuho raised their target price on shares of ON Semiconductor from $60.00 to $72.00 and gave the stock an "outperform" rating in a research report on Thursday, June 26th. Finally, Rosenblatt Securities restated a "neutral" rating and set a $42.00 target price on shares of ON Semiconductor in a research report on Tuesday, May 6th. Fourteen analysts have rated the stock with a hold rating and thirteen have given a buy rating to the company's stock. Based on data from MarketBeat, ON Semiconductor currently has a consensus rating of "Hold" and a consensus target price of $58.73.

ON Semiconductor Stock Performance

Shares of NASDAQ ON traded up $0.32 during midday trading on Tuesday, hitting $58.98. The company's stock had a trading volume of 5,388,102 shares, compared to its average volume of 9,901,800. ON Semiconductor Corporation has a 1-year low of $31.04 and a 1-year high of $79.45. The firm's fifty day moving average price is $52.67 and its 200-day moving average price is $47.69. The company has a debt-to-equity ratio of 0.42, a quick ratio of 3.32 and a current ratio of 4.95. The firm has a market cap of $24.65 billion, a P/E ratio of 41.00, a P/E/G ratio of 4.68 and a beta of 1.43.

ON Semiconductor (NASDAQ:ON - Get Free Report) last posted its quarterly earnings results on Monday, May 5th. The semiconductor company reported $0.55 EPS for the quarter, beating the consensus estimate of $0.51 by $0.04. The business had revenue of $1.45 billion during the quarter, compared to analyst estimates of $1.40 billion. ON Semiconductor had a net margin of 9.51% and a return on equity of 17.40%. The company's quarterly revenue was down 22.4% on a year-over-year basis. During the same period in the previous year, the business posted $1.08 EPS. On average, sell-side analysts forecast that ON Semiconductor Corporation will post 2.6 EPS for the current fiscal year.

ON Semiconductor 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.