ON Semiconductor (NASDAQ:ON) Earns Neutral Rating from Bank of America

Key Points

• ON Semiconductor has been downgraded by Bank of America from a "buy" rating to a "neutral" rating, with a price target of $56.00, indicating a potential upside of 16.74% from the previous close.
• The company reported earnings of $0.53 per share, missing analysts' expectations by $0.01, with a revenue of $1.47 billion, which is down 15.4% year-over-year.
• Despite the downgrade, ON Semiconductor maintains a significant following, with fifteen analysts rating it as a "hold" and a consensus price target of $56.88.

ON Semiconductor (NASDAQ:ON - Get Free Report)'s stock had its "neutral" rating reaffirmed by investment analysts at Bank of America in a research note issued on Tuesday, Marketbeat.com reports. They currently have a $56.00 price objective on the semiconductor company's stock, down from their prior price objective of $70.00. Bank of America's price objective indicates a potential upside of 17.67% from the company's previous close.

Other research analysts also recently issued reports about the company. Stifel Nicolaus upped their target price on ON Semiconductor from $42.00 to $50.00 and gave the stock a "hold" rating in a research note on Friday, July 18th. Roth Capital reaffirmed a "buy" rating and set a $70.00 target price (up from $50.00) on shares of ON Semiconductor in a research note on Tuesday, June 17th. Morgan Stanley started coverage on ON Semiconductor in a research note on Monday, May 12th. They set an "equal weight" rating and a $39.00 target price for the company. Citigroup upped their target price on ON Semiconductor from $40.00 to $60.00 and gave the stock a "neutral" rating in a research note on Monday, July 7th. Finally, Rosenblatt Securities reaffirmed a "neutral" rating and set a $42.00 target price on shares of ON Semiconductor in a research note on Tuesday, May 6th. Fifteen investment analysts have rated the stock with a hold rating and twelve have issued a buy rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of "Hold" and an average target price of $56.84.

ON Semiconductor Stock Performance

Shares of ON Semiconductor stock traded up $0.61 on Tuesday, reaching $47.59. 9,866,399 shares of the stock were exchanged, compared to its average volume of 10,746,045. The company has a quick ratio of 3.32, a current ratio of 5.02 and a debt-to-equity ratio of 0.42. ON Semiconductor has a twelve month low of $31.04 and a twelve month high of $78.61. The firm has a market capitalization of $19.46 billion, a price-to-earnings ratio of 44.48, a PEG ratio of 2.37 and a beta of 1.45. The business has a 50 day moving average price of $54.22 and a two-hundred day moving average price of $47.65.

ON Semiconductor (NASDAQ:ON - Get Free Report) last released its earnings results on Monday, August 4th. The semiconductor company reported $0.53 EPS for the quarter, missing analysts' consensus estimates of $0.54 by ($0.01). ON Semiconductor had a return on equity of 15.33% and a net margin of 7.28%. The firm had revenue of $1.47 billion for the quarter, compared to analyst estimates of $1.45 billion. During the same period last year, the firm earned $0.96 EPS. The company's revenue for the quarter was down 15.4% compared to the same quarter last year. Analysts anticipate that ON Semiconductor will post 2.6 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the company. Baillie Gifford & Co. purchased a new position in shares of ON Semiconductor in the 1st quarter valued at approximately $219,001,000. Pacer Advisors Inc. grew its holdings in 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 worth $87,330,000 after acquiring an additional 2,070,529 shares during the period. Allspring Global Investments Holdings LLC grew its holdings in 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 worth $203,462,000 after acquiring an additional 1,055,461 shares during the period. Janus Henderson Group PLC grew 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 acquiring an additional 1,041,989 shares during the period. Finally, Freestone Grove Partners LP acquired a new position in ON Semiconductor during the fourth quarter worth $62,426,000. Hedge funds and other institutional investors own 97.70% of the company's stock.

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.