Insider Selling: onsemi (NASDAQ:ON) Insider Sells 15,578 Shares of Company Stock

Key Points

• onsemi insider Sudhir Gopalswamy sold 15,578 shares at an average price of $80, generating $1.25 million; the transaction was conducted under a pre-arranged Rule 10b5-1 plan and reduced his holdings by 8.97%.
• ON shares rose to $84.89, while the company reported quarterly revenue of $1.60 billion and adjusted earnings of $0.74 per share, slightly exceeding analyst expectations.
• Analysts maintain a consensus “Moderate Buy” rating with a $95.36 price target, supported by optimism over onsemi’s revised $5.7 billion cash acquisition of Synaptics, though funding and integration risks remain.

onsemi (NASDAQ:ON - Get Free Report) insider Sudhir Gopalswamy sold 15,578 shares of the company's stock in a transaction that occurred on 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 completion of the transaction, the insider owned 158,177 shares of the company's stock, valued at approximately $12,654,160. The trade was a 8.97% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

onsemi Price Performance

Shares of ON stock traded up $4.81 on Friday, hitting $84.89. 22,881,913 shares of the stock traded hands, compared to its average volume of 10,555,539. 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 52 week low of $44.56 and a 52 week high of $134.92. The firm has a 50 day simple moving average of $76.44 and a two-hundred day simple moving average of $88.44. The firm has a market cap of $33.05 billion, a price-to-earnings ratio of 54.42, a PEG ratio of 0.64 and a beta of 2.05.

onsemi (NASDAQ:ON - Get Free Report) last issued its earnings results on Monday, August 3rd. The semiconductor company reported $0.74 earnings per share for the quarter, topping the consensus estimate of $0.72 by $0.02. onsemi had a net margin of 10.17% and a return on equity of 14.06%. The company had revenue of $1.60 billion during the quarter, compared to the consensus estimate of $1.59 billion. During the same quarter in the prior year, the firm posted $0.53 EPS. onsemi's quarterly revenue was up 9.2% compared to the same quarter last year. onsemi has set its Q3 2026 guidance at 0.810-0.930 EPS. As a group, equities research analysts predict that onsemi will post 3.2 earnings per share for the current fiscal year.

onsemi News Roundup

Here are the key news stories impacting onsemi this week:

• Positive Sentiment: More favorable Synaptics deal terms: onsemi will acquire Synaptics for $123 per share in cash, valuing the transaction at approximately $5.7 billion versus roughly $7 billion under the original all-stock agreement. The revised structure avoids issuing new onsemi shares and is expected to be immediately accretive to non-GAAP earnings per share. ON Semiconductor's revised Synaptics deal improves earnings outlook, says BofA
• Positive Sentiment: Analyst support strengthened: Bank of America and UBS said the amended transaction could deliver a larger earnings benefit than previously anticipated. Wells Fargo also raised its onsemi price target to $100 from $85 with an overweight rating, while Needham reaffirmed a buy rating and a $116 target. Onsemi's Revised Synaptics Deal Expected to Be Immediately Accretive, UBS Says
• Positive Sentiment: Potential operational upside: Management cited previously disclosed synergies, additional revenue opportunities and the possibility of bringing some Synaptics production in-house after closing. Unusually high call-option activity also indicated increased bullish trading interest. ON Semiconductor Analyst's 5 Key Takeaways from Synaptics Acquisition
• Neutral Sentiment: Key risks remain: The transaction followed an unsolicited competing proposal for Synaptics, so closing and integration remain subject to deal conditions. Although the lower purchase price improves economics, funding a $5.7 billion cash acquisition could increase financial obligations and execution risk.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Janus Henderson Group PLC increased its position in onsemi by 10.9% in the first quarter. Janus Henderson Group PLC now owns 13,700,884 shares of the semiconductor company's stock worth $848,392,000 after purchasing an additional 1,345,894 shares during the last quarter. Van ECK Associates Corp grew its stake in shares of onsemi by 16.6% in the 2nd quarter. Van ECK Associates Corp now owns 5,143,343 shares of the semiconductor company's stock worth $486,252,000 after buying an additional 731,540 shares in the last quarter. Pictet Asset Management Holding SA grew its stake in shares of onsemi by 15.5% in the 1st quarter. Pictet Asset Management Holding SA now owns 4,597,886 shares of the semiconductor company's stock worth $284,495,000 after buying an additional 615,905 shares in the last quarter. Dimensional Fund Advisors LP increased its holdings in shares of onsemi by 6.4% in the 1st quarter. Dimensional Fund Advisors LP now owns 3,442,177 shares of the semiconductor company's stock worth $212,997,000 after buying an additional 207,587 shares during the last quarter. Finally, Assenagon Asset Management S.A. raised its position in shares of onsemi by 74.8% during the 2nd quarter. Assenagon Asset Management S.A. now owns 2,807,808 shares of the semiconductor company's stock valued at $265,450,000 after buying an additional 1,201,534 shares in the last quarter. 97.70% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

Several brokerages recently issued reports on ON. Citigroup decreased their target price on onsemi from $120.00 to $98.00 and set a "neutral" rating on the stock in a research note on Wednesday, August 5th. Cantor Fitzgerald cut their price objective on shares of onsemi from $110.00 to $90.00 and set a "neutral" rating for the company in a report on Thursday, September 17th. Stifel Nicolaus reduced their price objective on shares of onsemi from $90.00 to $75.00 and set a "hold" rating on the stock in a research report on Thursday, September 17th. Susquehanna boosted their target price on shares of onsemi from $140.00 to $150.00 and gave the stock a "positive" rating in a report on Thursday, July 9th. Finally, Truist Financial dropped their target price on shares of onsemi from $91.00 to $75.00 and set a "hold" rating for the company in a research report on Friday, September 18th. Fifteen research analysts have rated the stock with a Buy rating and fifteen have issued a Hold rating to the company. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $95.36.

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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