Zacks Research Upgrades onsemi (NASDAQ:ON) to "Strong-Buy"

Key Points

• Zacks Research upgraded onsemi (NASDAQ:ON) from "hold" to "strong-buy" and several firms raised price targets, but MarketBeat's consensus rating remains "Hold" with an average target of $87.27.
• onsemi beat Q1 estimates with $0.64 EPS on $1.51B revenue and set Q2 guidance of $0.65–$0.77 EPS, yet shares opened down about 4.8% despite the results.
• The company priced a $1.3B offering of convertible senior notes (due 2031) to fund buybacks and hedges, a move that may cause short‑term selling pressure and dilution concerns; executives (CEO and CFO) also sold shares recently, leaving insiders with 0.35% ownership.

onsemi (NASDAQ:ON - Get Free Report) was upgraded by analysts at Zacks Research from a "hold" rating to a "strong-buy" rating in a research note issued to investors on Wednesday,Zacks.com reports.

Several other research analysts also recently weighed in on the stock. Susquehanna upped their target price on shares of onsemi from $100.00 to $120.00 and gave the stock a "positive" rating in a report on Tuesday. Jefferies Financial Group boosted their price target on shares of onsemi from $73.00 to $115.00 and gave the stock a "buy" rating in a research note on Tuesday. Stifel Nicolaus boosted their price target on shares of onsemi from $50.00 to $60.00 and gave the stock a "hold" rating in a research note on Friday, January 16th. Wells Fargo & Company boosted their price target on shares of onsemi from $90.00 to $115.00 and gave the stock an "overweight" rating in a research note on Tuesday. Finally, Benchmark cut shares of onsemi from a "buy" rating to a "hold" rating in a research note on Tuesday, February 10th. One analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating, fifteen have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, the company presently has an average rating of "Hold" and a consensus target price of $87.27.

onsemi Trading Down 4.8%

Shares of onsemi stock opened at $100.73 on Wednesday. The company has a market capitalization of $39.48 billion, a P/E ratio of 71.44, a P/E/G ratio of 0.94 and a beta of 1.94. The company has a debt-to-equity ratio of 0.41, a quick ratio of 2.98 and a current ratio of 4.87. The company has a fifty day moving average of $71.73 and a 200 day moving average of $62.05. onsemi has a fifty-two week low of $38.69 and a fifty-two week high of $105.90.

onsemi (NASDAQ:ON - Get Free Report) last issued its earnings results on Monday, May 4th. The semiconductor company reported $0.64 earnings per share for the quarter, topping the consensus estimate 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 net margin of 9.46% and a return on equity of 12.79%. onsemi's quarterly revenue was up 4.7% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.55 EPS. onsemi has set its Q2 2026 guidance at 0.650-0.770 EPS. On average, sell-side analysts anticipate that onsemi will post 3.08 earnings per share for the current fiscal year.

Insider Activity at onsemi

In related news, CEO Hassane El-Khoury sold 20,000 shares of the stock in a transaction dated Thursday, February 12th. The shares were sold at an average price of $73.02, for a total value of $1,460,400.00. Following the completion of the transaction, the chief executive officer owned 1,015,610 shares of the company's stock, valued at approximately $74,159,842.20. This trade represents a 1.93% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CFO Trent Thad sold 60,000 shares of the stock in a transaction dated Thursday, February 12th. The shares were sold at an average price of $71.22, for a total transaction of $4,273,200.00. Following the completion of the transaction, the chief financial officer directly owned 339,460 shares of the company's stock, valued at approximately $24,176,341.20. The trade was a 15.02% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders sold 146,114 shares of company stock valued at $11,282,308. Insiders own 0.35% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the business. CVA Family Office LLC lifted its holdings in shares of onsemi by 83.7% in the 4th quarter. CVA Family Office LLC now owns 472 shares of the semiconductor company's stock valued at $26,000 after acquiring an additional 215 shares during the last quarter. Root Financial Partners LLC grew its stake in shares of 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 buying an additional 149 shares during the last quarter. DV Equities LLC bought a new position in shares of onsemi during the fourth quarter valued at approximately $30,000. Deseret Mutual Benefit Administrators grew its stake in shares of onsemi by 62.3% during the third quarter. Deseret Mutual Benefit Administrators now owns 568 shares of the semiconductor company's stock valued at $28,000 after buying an additional 218 shares during the last quarter. Finally, Quent Capital LLC bought a new position in shares of onsemi during the third quarter valued at approximately $28,000. Institutional investors own 97.70% of the company's stock.

Key Headlines Impacting onsemi

Here are the key news stories impacting onsemi this week:

• Positive Sentiment: AI/data‑center momentum — analysts and articles highlight onsemi’s AI data‑center revenue rebound and margin improvement, which underpin higher 2026 earnings expectations and investor interest in ON’s secular exposure. Can ON Sustain Its AI-Driven Revenue Rebound Through 2026?
• Positive Sentiment: Auto content and strategic partnership — onsemi expanded its strategic partnership with Geely to accelerate EV development, a catalyst for automotive revenue growth; B. Riley upgraded the stock following the deal. ON Semi Expands Partnership With Geely, B. Riley Upgrades to Buy
• Positive Sentiment: Analyst support — multiple shops have raised targets or reiterated constructive views (examples: Morgan Stanley/Barclays moves noted in recent coverage), which provides a higher benchmark for upside. Why ON Semiconductor is One of the Top Semiconductor Stocks
• Neutral Sentiment: Convertible notes financing with buyback intent — onsemi priced $1.3B of convertible senior notes due 2031 and said it may use proceeds partly to repurchase up to $400M of shares and to pay for hedge transactions. The use of proceeds (debt paydown + buyback) is constructive long term, but the financing introduces complex near‑term market mechanics. onsemi Announces Pricing of Private Offering of $1.3 Billion of 0% Convertible Senior Notes
• Negative Sentiment: Hedging & potential selling pressure — the company and counterparties disclosed convertible‑note hedge and warrant transactions; hedge counterparties often sell or trade underlying shares to establish and adjust positions, which can depress the stock in the short run and raise dilution/convertibility concerns for investors. onsemi Announces Pricing of Private Offering of $1.3 Billion of 0% Convertible Senior Notes (GlobeNewswire)

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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