onsemi (NASDAQ:ON) Trading Up 7.6% - Time to Buy?

Key Points

• onsemi shares rose 7.6% on Thursday, trading as high as $102.07 after closing at $93.79 the prior day, though volume was well below average.
• Recent commentary has been mostly constructive, with analysts and Zacks pointing to benefits from Fab Right cost-cutting and growth opportunities in AI, automotive, and industrial semiconductor demand.
• There are still some mixed signals: several analysts recently adjusted ratings and price targets, and a Pomerantz investigation could create near-term legal overhang despite the stock’s positive momentum.

Shares of onsemi (NASDAQ:ON - Get Free Report) traded up 7.6% on Thursday . The stock traded as high as $102.07 and last traded at $100.9530. 3,016,426 shares changed hands during trading, a decline of 72% from the average daily volume of 10,766,304 shares. The stock had previously closed at $93.79.

Trending Headlines about onsemi

Here are the key news stories impacting onsemi this week:

• Positive Sentiment: Zacks said onsemi’s divestitures strengthen its Fab Right strategy, which is aimed at cutting costs and improving margins as demand grows in AI, auto, and industrial end markets.
• Positive Sentiment: Separate market commentary highlighted onsemi as one of the semiconductor names likely to benefit from AI-powered vehicles, supporting investor optimism around future chip demand. Article Title
• Positive Sentiment: Analyst coverage remains constructive, with Cantor Fitzgerald recently updating its view on ON and other firms still seeing upside tied to onsemi’s positioning in automotive and AI-related semiconductors. Article Title
• Neutral Sentiment: A Zacks Research downgrade from strong-buy to hold is a headwind, but it looks more like a valuation/caution signal than a major business setback.
• Negative Sentiment: Investor-alert coverage about a Pomerantz investigation into ON Semiconductor could add some legal overhang and create near-term uncertainty. Article Title

Wall Street Analysts Forecast Growth

Several equities analysts have recently commented on the stock. TD Cowen cut shares of onsemi from a "buy" rating to a "hold" rating and set a $110.00 price target on the stock. in a research report on Friday, June 26th. Stifel Nicolaus boosted their price objective on onsemi from $90.00 to $107.00 and gave the company a "hold" rating in a report on Wednesday, June 24th. JPMorgan Chase & Co. upped their price objective on onsemi from $70.00 to $100.00 and gave the company a "neutral" rating in a research note on Tuesday, May 5th. Needham & Company LLC increased their target price on onsemi from $110.00 to $130.00 and gave the stock a "buy" rating in a report on Friday, June 26th. Finally, Weiss Ratings reiterated a "sell (d+)" rating on shares of onsemi in a research report on Wednesday, April 29th. Thirteen analysts have rated the stock with a Buy rating, sixteen have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, onsemi currently has a consensus rating of "Hold" and a consensus price target of $101.58.

onsemi Stock Up 7.3%

The company has a debt-to-equity ratio of 0.41, a current ratio of 4.87 and a quick ratio of 3.14. The stock's fifty day simple moving average is $111.09 and its 200-day simple moving average is $81.11. The stock has a market cap of $39.44 billion, a P/E ratio of 71.31, a PEG ratio of 0.81 and a beta of 2.01.

onsemi (NASDAQ:ON - Get Free Report) last issued its earnings results on Monday, May 4th. The semiconductor company reported $0.64 EPS for the quarter, beating analysts' consensus estimates of $0.61 by $0.03. The company had revenue of $1.51 billion during 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%.onsemi's quarterly revenue was up 4.7% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.55 earnings per share. onsemi has set its Q2 2026 guidance at 0.650-0.770 EPS. On average, research analysts anticipate that onsemi will post 3.09 earnings per share for the current year.

Insider Transactions at onsemi

In related news, CFO Trent Thad sold 30,000 shares of the company's stock in a transaction on Thursday, April 23rd. The stock was sold at an average price of $93.00, for a total transaction of $2,790,000.00. Following the completion of the transaction, the chief financial officer directly owned 301,194 shares in the company, valued at $28,011,042. This represents a 9.06% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.35% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On onsemi

Institutional investors have recently modified their holdings of the company. Arista Wealth Management LLC acquired a new position in onsemi during the 2nd quarter valued at about $284,000. Everhart Financial Group Inc. increased its stake in shares of onsemi by 6.6% in the second quarter. Everhart Financial Group Inc. now owns 5,627 shares of the semiconductor company's stock valued at $532,000 after purchasing an additional 348 shares during the period. Quantum Financial Advisors LLC bought a new stake in shares of onsemi during the second quarter valued at approximately $242,000. Strategic Investment Solutions Inc. IL boosted its position in shares of onsemi by 12.4% during the second quarter. Strategic Investment Solutions Inc. IL now owns 2,943 shares of the semiconductor company's stock worth $278,000 after buying an additional 325 shares during the period. Finally, Cooper Financial Group acquired a new position in shares of onsemi during the second quarter worth approximately $215,000. Institutional investors own 97.70% of the company's stock.

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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