Morgan Stanley Forecasts Strong Price Appreciation for onsemi (NASDAQ:ON) Stock

Key Points

• Morgan Stanley raised its price target on onsemi from $85 to $87 but kept an "equal weight" rating, implying roughly a 13.96% downside from the stock's then-current price.
• onsemi beat Q1 estimates (EPS $0.64 vs. $0.61; revenue $1.51B vs. $1.49B), set Q2 guidance of $0.65–$0.77, announced about $346M in buybacks, and highlighted AI/data‑center demand—prompting several firms to lift targets (e.g., KeyBanc $125, Mizuho $120).
• Risks remain: the stock trades at a very high P/E (~297), insiders have recently sold shares, and analyst sentiment is mixed (15 Buy / 15 Hold / 1 Sell with an average target of about $81.62), signaling valuation and execution concerns despite bullish catalysts.

onsemi (NASDAQ:ON - Get Free Report) had its target price hoisted by analysts at Morgan Stanley from $85.00 to $87.00 in a report released on Tuesday,Benzinga reports. The firm currently has an "equal weight" rating on the semiconductor company's stock. Morgan Stanley's price objective would indicate a potential downside of 13.96% from the stock's current price.

A number of other analysts have also issued reports on the company. Truist Financial reaffirmed a "hold" rating and set a $101.00 target price (up from $66.00) on shares of onsemi in a research report on Tuesday. Citigroup lifted their target price on onsemi from $66.00 to $68.00 and gave the stock a "neutral" rating in a research report on Tuesday, February 10th. Jefferies Financial Group reaffirmed a "buy" rating on shares of onsemi in a research report on Tuesday. Robert W. Baird lifted their target price on onsemi from $56.00 to $100.00 and gave the stock a "neutral" rating in a research report on Tuesday. Finally, Bank of America raised onsemi from a "neutral" rating to a "buy" rating and lifted their target price for the stock from $70.00 to $85.00 in a research report on Monday, April 13th. Fifteen investment analysts have rated the stock with a Buy rating, fifteen have issued a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, onsemi presently has an average rating of "Hold" and an average target price of $81.62.

onsemi Stock Down 0.9%

NASDAQ:ON traded down $0.92 during mid-day trading on Tuesday, hitting $101.12. The company had a trading volume of 12,531,468 shares, compared to its average volume of 9,286,935. The business has a fifty day simple moving average of $69.72 and a 200-day simple moving average of $60.97. The company has a current ratio of 4.52, a quick ratio of 2.98 and a debt-to-equity ratio of 0.39. onsemi has a 1 year low of $37.19 and a 1 year high of $105.81. The firm has a market capitalization of $39.77 billion, a price-to-earnings ratio of 297.42, a PEG ratio of 1.05 and a beta of 1.94.

onsemi (NASDAQ:ON - Get Free Report) last announced its earnings results on Monday, May 4th. The semiconductor company reported $0.64 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.61 by $0.03. onsemi had a return on equity of 12.22% and a net margin of 2.02%.The business had revenue of $1.51 billion for the quarter, compared to analyst estimates of $1.49 billion. During the same period in the previous year, the company earned $0.55 earnings per share. The company's revenue for the quarter was up 4.7% compared to the same quarter last year. onsemi has set its Q2 2026 guidance at 0.650-0.770 EPS. Equities analysts forecast that onsemi will post 2.9 earnings per share for the current fiscal year.

Insider Activity

In other news, insider Sudhir Gopalswamy sold 6,114 shares of the stock in a transaction that occurred on Friday, March 13th. The stock was sold at an average price of $58.67, for a total transaction of $358,708.38. Following the sale, the insider directly owned 173,943 shares in the company, valued at approximately $10,205,235.81. This represents a 3.40% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO Trent Thad sold 60,000 shares of the business's stock in a transaction that occurred on Thursday, February 12th. The shares were sold at an average price of $71.22, for a total value of $4,273,200.00. Following the transaction, the chief financial officer owned 339,460 shares of the company's stock, valued at $24,176,341.20. This represents a 15.02% decrease in their position. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 146,114 shares of company stock valued at $11,282,308. 0.35% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of ON. CVA Family Office LLC grew its stake in shares of onsemi by 83.7% in the fourth quarter. CVA Family Office LLC now owns 472 shares of the semiconductor company's stock worth $26,000 after purchasing an additional 215 shares in the last quarter. Root Financial Partners LLC increased its stake in onsemi by 42.1% during the 4th quarter. Root Financial Partners LLC now owns 503 shares of the semiconductor company's stock valued at $27,000 after buying an additional 149 shares during the period. Quent Capital LLC acquired a new position in shares of onsemi during the third quarter valued at approximately $28,000. Migdal Insurance & Financial Holdings Ltd. lifted its position in onsemi by 68.7% in the third quarter. Migdal Insurance & Financial Holdings Ltd. now owns 577 shares of the semiconductor company's stock worth $28,000 after purchasing an additional 235 shares during the period. Finally, Deseret Mutual Benefit Administrators lifted its position in onsemi by 62.3% in the third quarter. Deseret Mutual Benefit Administrators now owns 568 shares of the semiconductor company's stock worth $28,000 after purchasing an additional 218 shares during the period. Institutional investors own 97.70% of the company's stock.

onsemi News Summary

Here are the key news stories impacting onsemi this week:

• Positive Sentiment: onsemi beat Q1 estimates, gave stronger-than-expected Q2 guidance and highlighted share repurchases (~$346M announced), signaling improving revenue and margin leverage as auto and data‑center demand recover. onsemi Reports First Quarter 2026 Results
• Positive Sentiment: Management is publicly emphasizing AI/data‑center compute demand as a durable growth driver — CEO Hassane El‑Khoury discussed expanding AI power needs and product exposure on Squawk on the Street, which supports the bull case for higher power IC content per server. Onsemi CEO Hassane El-Khoury on demand for compute
• Positive Sentiment: Analysts are upgrading and lifting targets after the print — KeyBanc (PT $125), Mizuho ($120), Wells Fargo ($115), Needham ($110) and others cited a cyclical bottom and accelerating data‑center power demand, supporting upside from current levels. Upgrade Cycle for ON Semiconductor: KeyBanc Hikes Price Target to $125
• Neutral Sentiment: Some firms kept neutral/hold stances even while raising targets, reflecting mixed views on technology positioning and execution timing (e.g., William Blair hold / Truist hold with a higher target). That leaves analyst sentiment constructive but not uniformly bullish. ON Semiconductor Maintained at Hold
• Negative Sentiment: Despite the beat, the stock initially fell in extended/premarket trading and some coverage said the results “failed to wow” investors — a reminder that expectations were high and execution detail/visibility matter for near‑term moves. ON Semiconductor Stock Drops After Earnings
• Negative Sentiment: Valuation and insider activity are potential headwinds: the stock trades at a very high P/E vs. history and filings show recent insider sales — factors traders watch when momentum is priced in. ON SEMICONDUCTOR ($ON) Releases Q1 2026 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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