Zacks Investment Research Downgrades ON Semiconductor (ON) to Hold

Zacks Investment Research lowered shares of ON Semiconductor (NASDAQ:ON) from a buy rating to a hold rating in a research note issued to investors on Monday.

According to Zacks, “ON Semi is an original equipment manufacturer (OEM) of a broad range of discrete and embedded semiconductor components.  Management is particularly positive about the strong operating model followed by the company. The addition of Fairchild’s offerings has expanded the company’s product portfolio. The company is benefiting from strong adoption of its products in the automotive, industrial and communications end-markets. Also, synergies from acquisitions have given the company exposure to new end markets along with higher margin capabilities. Notably, shares of the company have outperformed the industry in the past one year. Despite stellar results, investors remain disappointed by the company’s guidance. Further, the company faces significant competition in all of the served markets. Additionally, leveraged balance sheet remains a concern.”

Several other research analysts also recently issued reports on ON. KeyCorp reiterated a hold rating on shares of ON Semiconductor in a research report on Monday, December 11th. Morgan Stanley upped their price target on shares of ON Semiconductor from $18.50 to $20.00 and gave the stock an equal weight rating in a research report on Wednesday, December 13th. Piper Jaffray started coverage on shares of ON Semiconductor in a research report on Monday, December 18th. They set a neutral rating and a $21.00 price target on the stock. Needham & Company LLC reiterated a buy rating and set a $25.00 price target on shares of ON Semiconductor in a research report on Tuesday, December 19th. Finally, ValuEngine raised ON Semiconductor from a hold rating to a buy rating in a report on Sunday, December 31st. One equities research analyst has rated the stock with a sell rating, eight have assigned a hold rating, twelve have assigned a buy rating and two have assigned a strong buy rating to the stock. ON Semiconductor has a consensus rating of Buy and a consensus target price of $24.09.



Shares of NASDAQ ON opened at $25.36 on Monday. The stock has a market cap of $10,461.59, a P/E ratio of 21.20, a P/E/G ratio of 1.16 and a beta of 2.00. The company has a debt-to-equity ratio of 0.97, a quick ratio of 1.31 and a current ratio of 2.08. ON Semiconductor has a 12-month low of $13.65 and a 12-month high of $27.10.

ON Semiconductor (NASDAQ:ON) last issued its quarterly earnings results on Friday, February 2nd. The semiconductor company reported $0.39 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $0.37 by $0.02. The business had revenue of $1.38 billion for the quarter, compared to the consensus estimate of $1.35 billion. ON Semiconductor had a net margin of 14.63% and a return on equity of 21.88%. The firm’s quarterly revenue was up 9.2% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.29 EPS. sell-side analysts forecast that ON Semiconductor will post 1.73 earnings per share for the current fiscal year.

In other news, CFO Bernard Gutmann sold 126,667 shares of the company’s stock in a transaction dated Thursday, March 22nd. The stock was sold at an average price of $26.01, for a total value of $3,294,608.67. Following the completion of the sale, the chief financial officer now directly owns 665,507 shares of the company’s stock, valued at approximately $17,309,837.07. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider Bernard Raymond Colpitts, Jr. sold 5,838 shares of the company’s stock in a transaction dated Tuesday, March 13th. The shares were sold at an average price of $26.09, for a total value of $152,313.42. Following the completion of the sale, the insider now directly owns 17,803 shares of the company’s stock, valued at $464,480.27. The disclosure for this sale can be found here. Insiders have sold a total of 274,983 shares of company stock valued at $6,923,771 over the last three months. Company insiders own 1.60% of the company’s stock.

Several hedge funds have recently made changes to their positions in the company. LSV Asset Management grew its position in shares of ON Semiconductor by 63.1% in the 4th quarter. LSV Asset Management now owns 7,255,728 shares of the semiconductor company’s stock valued at $151,934,000 after purchasing an additional 2,806,816 shares during the period. Geode Capital Management LLC grew its position in shares of ON Semiconductor by 2.8% in the 4th quarter. Geode Capital Management LLC now owns 4,088,564 shares of the semiconductor company’s stock valued at $85,613,000 after purchasing an additional 110,427 shares during the period. Bank of Montreal Can grew its position in shares of ON Semiconductor by 132.3% in the 4th quarter. Bank of Montreal Can now owns 4,044,634 shares of the semiconductor company’s stock valued at $84,695,000 after purchasing an additional 2,303,338 shares during the period. Paradice Investment Management LLC grew its position in shares of ON Semiconductor by 2.0% in the 4th quarter. Paradice Investment Management LLC now owns 3,132,836 shares of the semiconductor company’s stock valued at $65,602,000 after purchasing an additional 62,868 shares during the period. Finally, Schwab Charles Investment Management Inc. grew its position in shares of ON Semiconductor by 31.0% in the 4th quarter. Schwab Charles Investment Management Inc. now owns 2,864,203 shares of the semiconductor company’s stock valued at $59,977,000 after purchasing an additional 677,112 shares during the period. 97.17% of the stock is owned by institutional investors.

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ON Semiconductor Company Profile

ON Semiconductor Corporation offers a portfolio of sensors, power management, connectivity, custom and system on chip (SoC), analog, logic, timing, and discrete devices. The Company’s segments include Power Solutions Group, Analog Solutions Group and Image Sensor Group. The Power Solutions Group offers a range of discrete, module and integrated semiconductor products.

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