ON Semiconductor (NASDAQ:ON) Cut to Sell at Zacks Investment Research

ON Semiconductor (NASDAQ:ON) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued on Wednesday, Zacks.com reports. They currently have a $19.00 price target on the semiconductor company’s stock. Zacks Investment Research‘s price objective indicates a potential upside of 6.86% from the stock’s previous close.

According to Zacks, “ON Semi is benefiting from robust adoption of its diversified product portfolio and favorable product mix. ON Semi continues to gain from its strength in automotive and industrial end-markets, in particular. Moreover, the addition of Fairchild’s offerings has expanded its product portfolio. Growing influence of its ADAS offerings, medium voltage MOSFETs in 5G markets and sturdy server solutions domain remain noteworthy. Estimates have been stable lately ahead of the company’s Q3 earnings release. Nonetheless, soft demand from Greater China, stiff competition and high debt burden remain major headwinds. Restructuring activities are anticipated to limit margin expansion. Notably, shares of ON Semi have underperformed the industry in the past year. The company has mixed record of earnings surprises in recent quarters.”

Several other analysts have also issued reports on ON. BNP Paribas assumed coverage on ON Semiconductor in a research note on Friday, August 30th. They issued an “outperform” rating on the stock. Raymond James upgraded ON Semiconductor from a “market perform” rating to a “strong-buy” rating and set a $21.00 price target for the company in a research report on Monday, August 19th. B. Riley reiterated a “buy” rating on shares of ON Semiconductor in a research report on Monday, August 5th. Loop Capital reduced their price target on ON Semiconductor to $23.00 and set a “buy” rating for the company in a research report on Tuesday, August 6th. Finally, BidaskClub upgraded ON Semiconductor from a “strong sell” rating to a “sell” rating in a research report on Thursday, September 12th. Four analysts have rated the stock with a sell rating, two have assigned a hold rating, thirteen have given a buy rating and one has issued a strong buy rating to the stock. ON Semiconductor presently has a consensus rating of “Buy” and a consensus target price of $24.41.



ON Semiconductor stock traded up $0.66 during mid-day trading on Wednesday, reaching $17.78. 149,366 shares of the company’s stock were exchanged, compared to its average volume of 6,459,841. The business’s fifty day simple moving average is $18.60 and its 200 day simple moving average is $19.89. The firm has a market capitalization of $7.18 billion, a PE ratio of 9.04, a P/E/G ratio of 1.80 and a beta of 2.18. ON Semiconductor has a one year low of $14.55 and a one year high of $23.54. The company has a quick ratio of 1.41, a current ratio of 2.42 and a debt-to-equity ratio of 1.08.

ON Semiconductor (NASDAQ:ON) last issued its quarterly earnings results on Sunday, August 4th. The semiconductor company reported $0.42 EPS for the quarter, hitting the Zacks’ consensus estimate of $0.42. The business had revenue of $1.35 billion for the quarter, compared to analyst estimates of $1.38 billion. ON Semiconductor had a return on equity of 25.36% and a net margin of 9.49%. ON Semiconductor’s quarterly revenue was down 7.4% compared to the same quarter last year. During the same period last year, the company posted $0.46 earnings per share. On average, sell-side analysts forecast that ON Semiconductor will post 1.55 earnings per share for the current year.

In related news, VP Paul E. Rolls sold 11,467 shares of the business’s stock in a transaction dated Wednesday, July 24th. The stock was sold at an average price of $22.00, for a total transaction of $252,274.00. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CFO Bernard Gutmann sold 43,266 shares of the business’s stock in a transaction dated Monday, September 30th. The stock was sold at an average price of $18.79, for a total value of $812,968.14. Following the transaction, the chief financial officer now owns 700,344 shares of the company’s stock, valued at $13,159,463.76. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 93,545 shares of company stock valued at $1,901,658. 1.40% of the stock is owned by company insiders.

Several institutional investors and hedge funds have recently bought and sold shares of ON. Cambridge Investment Research Advisors Inc. boosted its holdings in shares of ON Semiconductor by 13.8% in the 1st quarter. Cambridge Investment Research Advisors Inc. now owns 24,632 shares of the semiconductor company’s stock worth $507,000 after purchasing an additional 2,996 shares in the last quarter. First Trust Advisors LP lifted its stake in shares of ON Semiconductor by 99.5% in the 1st quarter. First Trust Advisors LP now owns 909,833 shares of the semiconductor company’s stock valued at $18,715,000 after acquiring an additional 453,695 shares during the last quarter. Envestnet Asset Management Inc. lifted its stake in shares of ON Semiconductor by 6.5% in the 1st quarter. Envestnet Asset Management Inc. now owns 383,540 shares of the semiconductor company’s stock valued at $7,889,000 after acquiring an additional 23,329 shares during the last quarter. Hancock Whitney Corp lifted its stake in shares of ON Semiconductor by 5.1% in the 1st quarter. Hancock Whitney Corp now owns 45,407 shares of the semiconductor company’s stock valued at $933,000 after acquiring an additional 2,223 shares during the last quarter. Finally, Jaffetilchin Investment Partners LLC bought a new stake in shares of ON Semiconductor in the 1st quarter valued at about $239,000. Hedge funds and other institutional investors own 96.06% of the company’s stock.

About ON Semiconductor

ON Semiconductor Corporation manufactures and sells semiconductor components for various electronic devices worldwide. The company operates in three segments: Power Solutions Group, Analog Solutions Group, and Intelligent Sensing Group. The Power Solutions Group segment offers discrete, module, and integrated semiconductor products for various applications, such as power switching and conversion, signal conditioning, circuit protection, signal amplification, and voltage reference.

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