onsemi (NASDAQ:ON) Shares Down 8.6% - Should You Sell?

Key Points

• onsemi shares fell 8.6% on Tuesday, trading as low as $119.12 after closing at $131.55 the previous day. Volume was well below normal, suggesting the move may have been driven more by trading pressure than by a major company announcement.
• Analysts remain broadly constructive, with Wells Fargo raising its price target and keeping an Overweight rating, and other firms also lifting targets recently. MarketBeat says the stock’s consensus rating is Moderate Buy.
• Fundamentals have been solid: the company recently beat earnings and revenue estimates and raised Q2 guidance, while the broader semiconductor sector is also supportive after the Philadelphia Semiconductor Index hit a record high. Investors may be taking profits or reacting to valuation concerns rather than new operational weakness.

onsemi (NASDAQ:ON - Get Free Report)'s stock price was down 8.6% on Tuesday . The company traded as low as $119.12 and last traded at $120.1920. 1,936,974 shares traded hands during trading, a decline of 81% from the average daily volume of 10,213,648 shares. The stock had previously closed at $131.55.

onsemi News Roundup

Here are the key news stories impacting onsemi this week:

• Positive Sentiment: Wells Fargo raised its price target on onsemi and kept an Overweight rating, citing strength in “physical AI” and continued demand tied to semiconductor growth themes.
• Positive Sentiment: The broader chip sector remains supportive after the Philadelphia Semiconductor Index hit a fresh record, which is helping keep attention on onsemi and other semiconductor names.
• Neutral Sentiment: Recent articles say onsemi is attracting investor attention, but do not point to any new company-specific operational update, acquisition, or guidance change to explain the move.
• Neutral Sentiment: The company’s last earnings report was solid, with EPS and revenue both beating estimates and Q2 guidance already raised, so investors may now be focusing on valuation and near-term profit-taking rather than fundamentals.

Wall Street Analyst Weigh In

Several brokerages have recently issued reports on ON. Susquehanna lifted their target price on shares of onsemi from $100.00 to $120.00 and gave the company a "positive" rating in a research report on Tuesday, May 5th. Bank of America upped their price target on shares of onsemi from $115.00 to $138.00 and gave the stock a "buy" rating in a research report on Tuesday, May 26th. Jefferies Financial Group raised their price target on shares of onsemi from $73.00 to $115.00 and gave the company a "buy" rating in a research note on Tuesday, May 5th. Cantor Fitzgerald lifted their price objective on onsemi from $95.00 to $100.00 and gave the stock a "neutral" rating in a report on Wednesday, May 13th. Finally, Morgan Stanley boosted their price objective on onsemi from $85.00 to $87.00 and gave the stock an "equal weight" rating in a research note on Tuesday, May 5th. One equities research analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating, fourteen have given a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $94.68.

onsemi Stock Down 9.7%

The company has a quick ratio of 3.14, a current ratio of 4.87 and a debt-to-equity ratio of 0.41. The firm has a market capitalization of $46.53 billion, a PE ratio of 84.12, a price-to-earnings-growth ratio of 1.08 and a beta of 1.97. The business has a 50-day moving average price of $107.52 and a 200-day moving average price of $77.45.

onsemi (NASDAQ:ON - Get Free Report) last announced its quarterly earnings data on Monday, May 4th. The semiconductor company reported $0.64 EPS for the quarter, topping analysts' consensus estimates of $0.61 by $0.03. The firm had revenue of $1.51 billion for the quarter, compared to the consensus estimate of $1.49 billion. onsemi had a return on equity of 12.79% and a net margin of 9.46%.The firm's revenue was up 4.7% compared to the same quarter last year. During the same quarter last year, the business posted $0.55 earnings per share. onsemi has set its Q2 2026 guidance at 0.650-0.770 EPS. Equities research analysts forecast that onsemi will post 3.09 earnings per share for the current fiscal year.

Insider Buying and Selling at onsemi

In other news, CFO Trent Thad sold 30,000 shares of the business's stock in a transaction dated Thursday, April 23rd. The shares were sold at an average price of $93.00, for a total transaction of $2,790,000.00. Following the transaction, the chief financial officer owned 301,194 shares of the company's stock, valued at approximately $28,011,042. The trade was a 9.06% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 0.35% of the company's stock.

Hedge Funds Weigh In On onsemi

Institutional investors have recently bought and sold shares of the company. Norges Bank acquired a new stake in shares of onsemi during the 4th quarter worth approximately $330,885,000. Two Sigma Investments LP lifted its holdings in onsemi by 636.1% in the third quarter. Two Sigma Investments LP now owns 3,749,751 shares of the semiconductor company's stock valued at $184,900,000 after acquiring an additional 3,240,375 shares during the last quarter. Rafferty Asset Management LLC grew its position in onsemi by 55.0% in the second quarter. Rafferty Asset Management LLC now owns 5,837,502 shares of the semiconductor company's stock worth $305,943,000 after acquiring an additional 2,072,125 shares during the period. Marshall Wace LLP grew its position in onsemi by 23,784.8% in the fourth quarter. Marshall Wace LLP now owns 1,716,122 shares of the semiconductor company's stock worth $92,928,000 after acquiring an additional 1,708,937 shares during the period. Finally, Alliancebernstein L.P. increased its stake in onsemi by 312.8% during the second quarter. Alliancebernstein L.P. now owns 2,011,077 shares of the semiconductor company's stock worth $105,401,000 after acquiring an additional 1,523,866 shares during the last quarter. 97.70% of the stock is owned by hedge funds and other institutional investors.

About onsemi

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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