ON Semiconductor (NASDAQ:ON) Shares Down 4.9% - Time to Sell?

Key Points

• ON Semiconductor's stock dropped by 4.9% during trading, with shares trading as low as $46.54 and a volume decline of 74% from the average.
• The company reported earnings of $0.53 per share for the quarter, slightly missing estimates, while revenue of $1.47 billion exceeded expectations.
• Analysts have mixed ratings with 12 buy ratings and 14 hold ratings, and the current average price target is $56.84.

ON Semiconductor Corporation (NASDAQ:ON - Get Free Report)'s stock price was down 4.9% during trading on Wednesday . The stock traded as low as $46.59 and last traded at $46.54. Approximately 2,523,903 shares changed hands during mid-day trading, a decline of 74% from the average daily volume of 9,807,805 shares. The stock had previously closed at $48.94.

Analyst Ratings Changes

Several equities research analysts have commented on ON shares. Truist Financial upped their price target on shares of ON Semiconductor from $43.00 to $49.00 and gave the company a "hold" rating in a report on Tuesday, August 5th. Piper Sandler reaffirmed an "overweight" rating on shares of ON Semiconductor in a report on Monday, August 4th. Morgan Stanley started coverage on shares of ON Semiconductor in a report on Monday, May 12th. They issued an "equal weight" rating and a $39.00 price target on the stock. Needham & Company LLC upped their price target on shares of ON Semiconductor from $50.00 to $58.00 and gave the company a "buy" rating in a report on Monday, August 4th. Finally, Stifel Nicolaus upped their price target on shares of ON Semiconductor from $42.00 to $50.00 and gave the company a "hold" rating in a report on Friday, July 18th. Twelve analysts have rated the stock with a Buy rating and fourteen have issued a Hold rating to the company's stock. According to MarketBeat, the company currently has a consensus rating of "Hold" and an average target price of $56.84.

ON Semiconductor Trading Down 2.9%

The firm has a market capitalization of $19.43 billion, a PE ratio of 44.41, a PEG ratio of 2.47 and a beta of 1.48. The company's 50-day moving average price is $53.95 and its 200-day moving average price is $47.35. The company has a debt-to-equity ratio of 0.42, a quick ratio of 3.37 and a current ratio of 5.02.

ON Semiconductor (NASDAQ:ON - Get Free Report) last released its quarterly earnings data on Monday, August 4th. The semiconductor company reported $0.53 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.54 by ($0.01). The firm had revenue of $1.47 billion for the quarter, compared to analysts' expectations of $1.45 billion. ON Semiconductor had a return on equity of 15.33% and a net margin of 7.28%.ON Semiconductor's revenue for the quarter was down 15.4% on a year-over-year basis. During the same period last year, the firm posted $0.96 earnings per share. ON Semiconductor has set its Q3 2025 guidance at 0.540-0.640 EPS. On average, sell-side analysts expect that ON Semiconductor Corporation will post 2.6 earnings per share for the current year.

Insider Activity

In other news, CEO Hassane El-Khoury sold 15,000 shares of ON Semiconductor stock in a transaction on Wednesday, August 13th. The shares were sold at an average price of $51.22, for a total transaction of $768,300.00. Following the completion of the sale, the chief executive officer directly owned 977,814 shares of the company's stock, valued at approximately $50,083,633.08. The trade was a 1.51% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Company insiders own 0.31% of the company's stock.

Institutional Investors Weigh In On ON Semiconductor

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Vanguard Group Inc. lifted its position in ON Semiconductor by 0.5% in the second quarter. Vanguard Group Inc. now owns 51,367,704 shares of the semiconductor company's stock valued at $2,692,181,000 after acquiring an additional 243,238 shares during the last quarter. Janus Henderson Group PLC lifted its position in ON Semiconductor by 9.2% in the fourth quarter. Janus Henderson Group PLC now owns 12,377,264 shares of the semiconductor company's stock valued at $780,387,000 after acquiring an additional 1,041,989 shares during the last quarter. Ameriprise Financial Inc. increased its stake in ON Semiconductor by 7.7% in the second quarter. Ameriprise Financial Inc. now owns 12,205,996 shares of the semiconductor company's stock valued at $639,716,000 after purchasing an additional 877,533 shares during the period. Geode Capital Management LLC increased its stake in ON Semiconductor by 0.7% in the second quarter. Geode Capital Management LLC now owns 11,296,301 shares of the semiconductor company's stock valued at $590,383,000 after purchasing an additional 77,795 shares during the period. Finally, Rafferty Asset Management LLC increased its stake in ON Semiconductor by 55.0% in the second quarter. Rafferty Asset Management LLC now owns 5,837,502 shares of the semiconductor company's stock valued at $305,943,000 after purchasing an additional 2,072,125 shares during the period. 97.70% of the stock is owned by hedge funds and other institutional investors.

About ON Semiconductor

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.

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