ON Semiconductor (NASDAQ:ON) Shares Gap Down on Disappointing Earnings

Key Points

• ON Semiconductor shares gapped down from a previous close of $56.82 to open at $54.00 following quarterly earnings that missed expectations with an EPS of $0.53 against a consensus estimate of $0.54.
• The company's revenue was down 15.4% year-over-year, reporting $1.47 billion compared to analyst predictions of $1.45 billion.
• Analysts maintain a mixed outlook with a consensus rating of "Hold" and various price targets ranging from $50.00 to $72.00 for ON Semiconductor stock.

ON Semiconductor Corporation (NASDAQ:ON - Get Free Report)'s share price gapped down before the market opened on Monday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $56.82, but opened at $54.00. ON Semiconductor shares last traded at $51.53, with a volume of 5,124,721 shares changing hands.

The semiconductor company reported $0.53 EPS for the quarter, missing analysts' consensus estimates of $0.54 by ($0.01). The firm had revenue of $1.47 billion for the quarter, compared to the consensus estimate of $1.45 billion. ON Semiconductor had a net margin of 9.51% and a return on equity of 17.40%. The business's revenue was down 15.4% compared to the same quarter last year. During the same period last year, the company posted $0.96 EPS.

Analyst Ratings Changes

Several equities analysts recently weighed in on ON shares. Stifel Nicolaus raised their price target on shares of ON Semiconductor from $42.00 to $50.00 and gave the company a "hold" rating in a research report on Friday, July 18th. UBS Group reaffirmed a "neutral" rating and issued a $55.00 price target (up previously from $45.00) on shares of ON Semiconductor in a research report on Monday, July 7th. The Goldman Sachs Group started coverage on shares of ON Semiconductor in a research report on Thursday, July 10th. They issued a "neutral" rating and a $60.00 price target on the stock. KGI Securities initiated coverage on shares of ON Semiconductor in a research report on Friday, May 23rd. They issued a "neutral" rating on the stock. Finally, Mizuho lifted 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. Fourteen research analysts have rated the stock with a hold rating and eleven have issued a buy rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of "Hold" and an average price target of $56.13.

Institutional Trading of ON Semiconductor

A number of hedge funds have recently made changes to their positions in ON. Baillie Gifford & Co. purchased a new position in shares of ON Semiconductor in the first quarter valued at about $219,001,000. Pacer Advisors Inc. increased its position in shares of ON Semiconductor by 2,735.5% during the first quarter. Pacer Advisors Inc. now owns 2,146,221 shares of the semiconductor company's stock valued at $87,330,000 after buying an additional 2,070,529 shares during the period. Allspring Global Investments Holdings LLC increased its position in shares of ON Semiconductor by 26.3% during 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 during the period. Janus Henderson Group PLC increased its position in shares of 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 valued at $780,387,000 after buying an additional 1,041,989 shares during the period. Finally, Freestone Grove Partners LP purchased a new position in shares of ON Semiconductor during the fourth quarter valued at about $62,426,000. 97.70% of the stock is owned by institutional investors.

ON Semiconductor Price Performance

The company has a market cap of $21.53 billion, a PE ratio of 36.00, a PEG ratio of 4.67 and a beta of 1.45. The company has a quick ratio of 3.32, a current ratio of 4.95 and a debt-to-equity ratio of 0.42. The firm's 50-day moving average is $53.83 and its 200-day moving average is $47.76.

ON Semiconductor 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.