onsemi (NASDAQ:ON) Shares Gap Up - Here's Why

Key Points

• Shares gapped up — onsemi opened at $99.56 versus a $93.30 close and was last near $98.82 (up ~5.2%), driven by expanded OEM demand and sector momentum from new partnerships with Geely and NIO to deploy 900V EliteSiC power technology in EV platforms.
• Fundamentals are mixed: the company slightly beat EPS but reported revenue down ~11.2% YoY and gave conservative Q1 guidance (EPS 0.560–0.660), while analysts' consensus remains a Hold with a $67.15 target, leaving valuation (P/E ~288) and execution as key near‑term questions.
• Risk factors include notable insider selling (CFO sold 30,000 shares under a 10b5‑1 plan and insiders sold ~146,114 shares in 90 days) and broader semiconductor volatility tied to AI spending uncertainty and geopolitical risk.

onsemi (NASDAQ:ON - Get Free Report) shares gapped up prior to trading on Wednesday . The stock had previously closed at $93.30, but opened at $99.56. onsemi shares last traded at $98.8180, with a volume of 1,322,434 shares changing hands.

Key onsemi News

Here are the key news stories impacting onsemi this week:

• Positive Sentiment: Expanded OEM demand — onsemi deepened collaboration with Geely to integrate its EliteSiC 900V power technologies into Geely’s SEA‑S platform, a direct catalyst for higher SiC power device content per EV and a multi‑vehicle roll‑out path. Read More.
• Positive Sentiment: NIO partnership strengthens 900V roadmap — onsemi’s work with NIO to support 900V EV architectures reinforces near‑term design wins with another major EV OEM, increasing visibility into high‑voltage power‑electronics demand. Read More.
• Positive Sentiment: Sector momentum — recent analyst/features highlight an industrial/automotive chip rally driven by AI, EV electrification and power‑conversion needs, which favors onsemi’s portfolio (SiC power, sensors, power management). That macro narrative is supporting multiple chip names, including ON. Read More.
• Neutral Sentiment: Earnings and guidance are mixed — recent quarterly results beat EPS modestly but showed revenue pressure year‑over‑year and conservative near‑term guidance; upside remains execution‑dependent. Watch upcoming Q1 prints and management commentary for demand signal confirmation. Read More.
• Negative Sentiment: Insider selling and short‑term profit‑taking — the CFO sold shares under a 10b5‑1 plan (SEC filing); while routine, such sales can feed short‑term selling or raise perception issues during a volatile sector rally. Read More.
• Negative Sentiment: Broader semiconductor caution — an earlier industry pullback tied to AI‑spend uncertainty and geopolitical risk weighed on semiconductors; that backdrop can produce volatility even when company‑level news is positive. Read More.

Analysts Set New Price Targets

A number of brokerages have weighed in on ON. Wells Fargo & Company lifted their price target on shares of onsemi from $70.00 to $72.00 and gave the company an "overweight" rating in a research note on Tuesday, February 10th. Truist Financial lifted their price target on shares of onsemi from $57.00 to $66.00 and gave the company a "hold" rating in a research note on Tuesday, February 10th. Evercore reaffirmed an "outperform" rating on shares of onsemi in a research note on Wednesday, January 7th. JPMorgan Chase & Co. lifted their price target on shares of onsemi from $56.00 to $70.00 and gave the company a "neutral" rating in a research note on Tuesday, February 10th. Finally, Craig Hallum reaffirmed a "hold" rating on shares of onsemi in a research note on Tuesday, February 10th. Fourteen research analysts have rated the stock with a Buy rating, fifteen have given a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, onsemi presently has an average rating of "Hold" and a consensus target price of $67.15.

onsemi Stock Up 5.2%

The company has a quick ratio of 2.98, a current ratio of 4.52 and a debt-to-equity ratio of 0.39. The company has a market capitalization of $38.61 billion, a price-to-earnings ratio of 288.20, a P/E/G ratio of 0.99 and a beta of 1.53. The stock's fifty day moving average price is $68.50 and its 200-day moving average price is $60.27.

onsemi (NASDAQ:ON - Get Free Report) last posted its quarterly earnings data on Monday, February 9th. The semiconductor company reported $0.64 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.62 by $0.02. onsemi had a net margin of 2.02% and a return on equity of 12.22%. The company had revenue of $1.53 billion for the quarter, compared to the consensus estimate of $1.54 billion. During the same period last year, the company earned $0.95 earnings per share. The firm's revenue was down 11.2% compared to the same quarter last year. onsemi has set its Q1 2026 guidance at 0.560-0.660 EPS. On average, sell-side analysts predict that onsemi will post 2.93 earnings per share for the current fiscal year.

Insider Activity

In other 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 sale, the chief financial officer directly owned 301,194 shares in the company, valued at $28,011,042. This trade represents a 9.06% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Sudhir Gopalswamy sold 6,114 shares of onsemi stock in a transaction that occurred on Friday, March 13th. The shares were sold at an average price of $58.67, for a total transaction of $358,708.38. Following the completion of the sale, the insider owned 173,943 shares in the company, valued at $10,205,235.81. This trade represents a 3.40% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 146,114 shares of company stock worth $11,282,308 over the last ninety days. Insiders own 0.35% of the company's stock.

Hedge Funds Weigh In On onsemi

A number of institutional investors have recently added to or reduced their stakes in the company. Integrated Advisors Network LLC acquired a new position in onsemi during the first quarter worth $568,000. Ascentis Independent Advisors acquired a new position in onsemi during the first quarter worth $36,000. V Square Quantitative Management LLC increased its holdings in onsemi by 2.7% during the first quarter. V Square Quantitative Management LLC now owns 5,946 shares of the semiconductor company's stock worth $368,000 after buying an additional 157 shares during the last quarter. QRG Capital Management Inc. increased its holdings in onsemi by 4.2% during the first quarter. QRG Capital Management Inc. now owns 28,800 shares of the semiconductor company's stock worth $1,783,000 after buying an additional 1,172 shares during the last quarter. Finally, PFG Investments LLC acquired a new position in onsemi during the first quarter worth $382,000. 97.70% of the stock is currently owned by institutional investors and hedge funds.

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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