onsemi (NASDAQ:ON) Stock Price Down 9.3% - Time to Sell?

Key Points

• onsemi shares fell 9.3% to about $66.40, significantly below the 50-day and 200-day moving averages of $80.77 and $87.42, respectively.
• The company introduced its Embedded Power Platform, which could deliver 3–5 times higher power density and target AI infrastructure, electric vehicles and industrial automation. Subaru is evaluating the technology, but no production contract, revenue guidance or immediate earnings impact was announced.
• Analysts remain broadly positive, with a “Moderate Buy” consensus and an average price target of $96.44, while recent earnings exceeded estimates. However, insider selling, mixed institutional activity and the stock’s sharp decline remain sentiment headwinds.

onsemi (NASDAQ:ON - Get Free Report) fell 9.3% during trading on Wednesday . The stock traded as low as $66.68 and last traded at $66.3980. 8,876,121 shares were traded during trading, a decline of 14% from the average session volume of 10,325,120 shares. The stock had previously closed at $73.20.

onsemi News Summary

Here are the key news stories impacting onsemi this week:

• Positive Sentiment: onsemi introduced its Embedded Power Platform (EPP), which integrates power devices, including silicon, silicon carbide and gallium nitride, into a wafer-level package. The company says the architecture could deliver up to 3–5 times higher power density, reduce thermal and electrical losses, and shorten development cycles. EPP is aimed at AI infrastructure, electric vehicles and industrial automation. onsemi Introduces the Embedded Power Platform
• Positive Sentiment: Subaru entered a strategic technology engagement to evaluate EPP for future electrified vehicles. The collaboration gives Subaru access to engineering samples and technical expertise, offering potential validation for onsemi’s technology and a path to future automotive design wins. However, it is an evaluation agreement rather than a production contract. Subaru to Evaluate onsemi’s Embedded Power Platform
• Positive Sentiment: Management outlined a potential $213 billion total addressable market by 2030 across automotive, industrial, AI data centers and emerging physical-AI applications. onsemi plans to sell higher-value, system-level solutions rather than individual components, which could increase content per customer and diversify its end-market exposure. onsemi Charts Path to Power the Next Decade of Innovation
• Neutral Sentiment: The announcements are largely long-term and include forward-looking projections, with EPP sampling expected to begin in 2026. No material revenue guidance, binding customer orders or earnings impact was disclosed, limiting the immediate effect on valuation.
• Negative Sentiment: Recent insider activity is a modest sentiment headwind: onsemi CFO Trent Thad reportedly sold 90,000 shares over the past six months with no reported insider purchases. Institutional ownership data is also mixed, with several large investors adding shares while others reduced positions.

Analysts Set New Price Targets

Several equities research analysts have recently weighed in on the stock. Truist Financial set a $40.00 target price on shares of onsemi in a research note on Wednesday, August 12th. Rosenblatt Securities reiterated a "neutral" rating and set a $85.00 price target on shares of onsemi in a report on Tuesday, August 4th. Wells Fargo & Company reduced their price objective on shares of onsemi from $110.00 to $95.00 and set an "overweight" rating on the stock in a research report on Thursday, September 3rd. UBS Group reissued a "neutral" rating and issued a $95.00 price objective on shares of onsemi in a research note on Monday, June 29th. Finally, Bank of America boosted their target price on onsemi from $115.00 to $138.00 and gave the company a "buy" rating in a research report on Tuesday, May 26th. Fifteen analysts have rated the stock with a Buy rating and fifteen have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $96.44.

onsemi Stock Performance

The firm has a market capitalization of $26.03 billion, a P/E ratio of 42.64, a P/E/G ratio of 0.59 and a beta of 2.00. The firm has a 50-day moving average price of $80.77 and a two-hundred day moving average price of $87.42. The company has a debt-to-equity ratio of 0.51, a current ratio of 3.46 and a quick ratio of 2.49.

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

Hedge Funds Weigh In On onsemi

A number of hedge funds have recently added to or reduced their stakes in the stock. Sequoia Financial Advisors LLC increased its position in shares of onsemi by 1.7% during the second quarter. Sequoia Financial Advisors LLC now owns 20,170 shares of the semiconductor company's stock worth $1,907,000 after acquiring an additional 344 shares during the period. Arlington Capital Management Inc. bought a new position in onsemi in the second quarter worth approximately $246,000. WINTON GROUP Ltd bought a new position in onsemi in the second quarter worth approximately $293,000. Engineers Gate Manager LP increased its holdings in onsemi by 570.3% during the 2nd quarter. Engineers Gate Manager LP now owns 304,377 shares of the semiconductor company's stock worth $28,776,000 after purchasing an additional 258,968 shares during the period. Finally, Integrated Wealth Concepts LLC increased its holdings in onsemi by 1.4% during the 2nd quarter. Integrated Wealth Concepts LLC now owns 22,059 shares of the semiconductor company's stock worth $2,085,000 after purchasing an additional 298 shares during the period. 97.70% of the stock is currently owned by 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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