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

Key Points

• onsemi shares gapped down sharply after the market opened Friday, falling from a prior close of $118.74 to an opening price of $98.29, with the stock last trading near $96.67.
• The biggest company catalyst was its proposed all-stock acquisition of Synaptics, which onsemi says could expand its addressable market by about $30 billion and add roughly $200 million in annual synergies, but it also brings dilution and integration risk.
• Despite reaffirming its Q2 2026 outlook and posting earnings and revenue that beat estimates, sentiment turned cautious after TD Cowen reportedly downgraded the stock, while analysts’ consensus rating remains Hold with an average price target around $101.58.

onsemi (NASDAQ:ON - Get Free Report)'s share price gapped down before the market opened on Friday . The stock had previously closed at $118.74, but opened at $98.29. onsemi shares last traded at $96.6740, with a volume of 7,401,372 shares.

onsemi News Summary

Here are the key news stories impacting onsemi this week:

• Positive Sentiment: The Synaptics deal would expand onsemi’s total addressable market by about $30 billion to $243 billion by 2030 and deepen its capabilities in Edge AI, connectivity, and human-machine interface technologies.
• Positive Sentiment: Management said the acquisition should be accretive to non-GAAP EPS within 18 months and could deliver about $200 million in annual synergies, which supports the long-term growth thesis.
• Neutral Sentiment: onsemi also reaffirmed its second-quarter 2026 financial outlook, signaling that the company’s near-term operating view has not changed despite the acquisition announcement.
• Negative Sentiment: Because the transaction is all-stock, onsemi shareholders face dilution and uncertainty over how much value the deal will ultimately add.
• Negative Sentiment: The market is also weighing deal complexity, integration risk, and the fact that the acquisition will not close until mid-2027, leaving a long path of regulatory and shareholder approvals ahead.
• Negative Sentiment: TD Cowen reportedly downgraded onsemi to Hold and cut its price target, reinforcing the cautious tone around the stock today.

Wall Street Analyst Weigh In

A number of equities research analysts recently commented on the stock. Deutsche Bank Aktiengesellschaft restated a "buy" rating on shares of onsemi in a research report on Tuesday, May 5th. Truist Financial reissued a "hold" rating and issued a $101.00 price target (up from $66.00) on shares of onsemi in a report on Tuesday, May 5th. Rosenblatt Securities raised their price target on onsemi from $60.00 to $85.00 and gave the company a "neutral" rating in a report on Tuesday, May 5th. Susquehanna restated a "positive" rating and issued a $140.00 price target on shares of onsemi in a research note on Friday. Finally, Barclays upped their price objective on onsemi from $75.00 to $100.00 and gave the stock an "equal weight" rating in a report on Wednesday, May 6th. One analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating, fifteen have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company presently has an average rating of "Hold" and a consensus price target of $101.58.

onsemi Stock Performance

The stock's fifty day simple moving average is $110.31 and its 200-day simple moving average is $78.75. 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 company has a market capitalization of $36.42 billion, a PE ratio of 65.57, a PEG ratio of 1.03 and a beta of 1.97.

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

Insider Transactions at onsemi

In other onsemi news, CFO Trent Thad sold 30,000 shares of onsemi stock in a transaction that occurred on Thursday, April 23rd. The shares were sold at an average price of $93.00, for a total value of $2,790,000.00. Following the completion of the sale, the chief financial officer directly 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 transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 0.35% of the company's stock.

Institutional Investors Weigh In On onsemi

Several hedge funds have recently made changes to their positions in ON. CVA Family Office LLC increased its stake in onsemi by 83.7% in the fourth quarter. CVA Family Office LLC now owns 472 shares of the semiconductor company's stock valued at $26,000 after purchasing an additional 215 shares during the last quarter. Root Financial Partners LLC boosted its stake in onsemi by 42.1% in the 4th quarter. Root Financial Partners LLC now owns 503 shares of the semiconductor company's stock worth $27,000 after buying an additional 149 shares during the last quarter. DV Equities LLC purchased a new stake in onsemi in the 4th quarter valued at about $30,000. Ascentis Independent Advisors acquired a new position in shares of onsemi during the 1st quarter valued at about $36,000. Finally, SHP Wealth Management acquired a new position in shares of onsemi during the 4th quarter valued at about $32,000. Institutional investors and hedge funds own 97.70% of the company's stock.

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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