onsemi (NASDAQ:ON) Stock Jumps 5.2% - Time to Buy?

Key Points

• onsemi shares rose 5.2% to $76.92 as investors assessed the company’s Investor Day strategy, including a potential $213 billion AI-power opportunity and plans to more than double annual free cash flow by 2030.
• The pending Synaptics acquisition is expected to add connected-compute, software and edge-AI capabilities, with management targeting earnings accretion within 18 months of closing. Seaport initiated coverage with a Buy rating, while analysts’ consensus rating remains “Moderate Buy” with a $94.76 price target.
• Recent quarterly results beat expectations, with EPS of $0.74 and revenue up 9.2% year over year, but valuation, execution of AI and data-center opportunities, and continued insider selling remain risks.

onsemi (NASDAQ:ON - Get Free Report) shares traded up 5.2% on Friday. The stock traded as high as $76.67 and last traded at $76.92. Approximately 2,295,511 shares were traded during trading, a decline of 78% from the average session volume of 10,461,129 shares. The stock had previously closed at $73.15.

More onsemi News

Here are the key news stories impacting onsemi this week:

• Positive Sentiment: Investors continued to digest onsemi’s Investor Day strategy, which highlighted a potential $213 billion AI power opportunity, rising semiconductor content in data centers, and growth across automotive, industrial and electrification markets. Management also outlined goals for faster revenue growth, margin expansion and more than doubling annual free cash flow by 2030. onsemi Rises as Investors Digest AI-Power Growth Plans and Synaptics Deal
• Positive Sentiment: The pending acquisition of Synaptics is being viewed more favorably after management positioned it as a way to add connected-compute, software and edge-AI capabilities. onsemi expects the transaction to become earnings-accretive within 18 months of closing and generate annual synergies. Synaptics Deal Analysis
• Positive Sentiment: Seaport Research initiated coverage of onsemi with a Buy rating, grouping the company with AI-infrastructure beneficiaries Marvell Technology and Semtech. Roth MKM also maintained its Buy rating. Seaport Initiates Coverage
• Positive Sentiment: Jefferies said concerns about onsemi’s margin outlook may be overstated, arguing that the 53% gross-margin target could improve as volumes rise, costs decline and differentiated data-center products scale. Jefferies on onsemi Data-Center Demand
• Neutral Sentiment: Recent quarterly results exceeded estimates, with revenue up 9.2% year over year and quarterly EPS of $0.74 versus the $0.72 consensus. However, the stock’s valuation and recovery depend on converting AI and data-center opportunities into sustained growth.
• Negative Sentiment: Insider-trading data shows CFO Trent Thad sold 90,000 shares over the past six months, with no reported insider purchases. Continued insider selling may temper enthusiasm around the company’s long-term outlook.

Analysts Set New Price Targets

Several equities research analysts have recently commented on ON shares. Stifel Nicolaus decreased their target price on shares of onsemi from $90.00 to $75.00 and set a "hold" rating for the company in a research report on Thursday, September 17th. B. Riley Financial decreased their price target on onsemi from $135.00 to $127.00 and set a "buy" rating for the company in a report on Tuesday, August 4th. Weiss Ratings upgraded onsemi from a "sell (d+)" rating to a "hold (c)" rating in a research note on Friday, August 7th. Needham & Company LLC reaffirmed a "buy" rating and set a $116.00 price objective on shares of onsemi in a report on Thursday, September 17th. Finally, Susquehanna upped their target price on shares of onsemi from $140.00 to $150.00 and gave the stock a "positive" rating in a research note on Thursday, July 9th. Fifteen investment analysts have rated the stock with a Buy rating and fifteen have given a Hold rating to the stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $94.76.

onsemi Trading Up 5.9%

The stock has a market capitalization of $30.17 billion, a PE ratio of 49.63, a price-to-earnings-growth ratio of 0.60 and a beta of 2.00. The company has a current ratio of 3.46, a quick ratio of 2.49 and a debt-to-equity ratio of 0.51. The firm has a 50-day moving average price of $77.67 and a 200-day moving average price of $87.79.

onsemi (NASDAQ:ON - Get Free Report) last posted its quarterly earnings results on Monday, August 3rd. The semiconductor company reported $0.74 earnings per share for the quarter, beating the consensus estimate of $0.72 by $0.02. onsemi had a net margin of 10.17% and a return on equity of 14.06%. The company had revenue of $1.60 billion during the quarter, compared to analyst estimates of $1.59 billion. During the same quarter in the prior year, the business earned $0.53 earnings per share. The firm's revenue for the quarter was up 9.2% on a year-over-year basis. onsemi has set its Q3 2026 guidance at 0.810-0.930 EPS. As a group, equities analysts forecast that onsemi will post 3.23 EPS for the current fiscal year.

Institutional Investors Weigh In On onsemi

Hedge funds have recently modified their holdings of the stock. Root Financial Partners LLC grew its holdings in onsemi by 42.1% during the fourth quarter. Root Financial Partners LLC now owns 503 shares of the semiconductor company's stock valued at $27,000 after purchasing an additional 149 shares during the period. Ascentis Independent Advisors purchased a new position in shares of onsemi during the 1st quarter valued at $36,000. SHP Wealth Management purchased a new position in shares of onsemi during the 4th quarter valued at $32,000. Deseret Mutual Benefit Administrators grew its stake in shares of onsemi by 28.2% during the 4th quarter. Deseret Mutual Benefit Administrators now owns 728 shares of the semiconductor company's stock worth $39,000 after acquiring an additional 160 shares during the period. Finally, Compass Financial Management LLC purchased a new stake in onsemi in the 2nd quarter worth about $67,000. Institutional investors 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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