onsemi (NASDAQ:ON) Shares Gap Down – Here’s What Happened

onsemi (NASDAQ:ON) shares gapped down prior to trading on Friday . The stock had previously closed at $118.74, but opened at $98.29. onsemi shares last traded at $96.6740, with a volume of 7,401,372 shares.

Trending Headlines about onsemi

Here are the key news stories impacting onsemi this week:

• Positive Sentiment: The Synaptics deal would expand onsemi’s total addressable market by about $30 billion to $243 billion by 2030 and deepen its capabilities in Edge AI, connectivity, and human-machine interface technologies.
• Positive Sentiment: Management said the acquisition should be accretive to non-GAAP EPS within 18 months and could deliver about $200 million in annual synergies, which supports the long-term growth thesis.
• Neutral Sentiment: onsemi also reaffirmed its second-quarter 2026 financial outlook, signaling that the company’s near-term operating view has not changed despite the acquisition announcement.
• Negative Sentiment: Because the transaction is all-stock, onsemi shareholders face dilution and uncertainty over how much value the deal will ultimately add.
• Negative Sentiment: The market is also weighing deal complexity, integration risk, and the fact that the acquisition will not close until mid-2027, leaving a long path of regulatory and shareholder approvals ahead.
• Negative Sentiment: TD Cowen reportedly downgraded onsemi to Hold and cut its price target, reinforcing the cautious tone around the stock today.

Analysts Set New Price Targets

A number of equities analysts have weighed in on the stock. TD Cowen downgraded shares of onsemi from a “buy” rating to a “hold” rating and set a $110.00 price target on the stock. in a research note on Friday. Roth Mkm reissued a “buy” rating on shares of onsemi in a research note on Tuesday, May 5th. Morgan Stanley upped their price objective on onsemi from $85.00 to $87.00 and gave the stock an “equal weight” rating in a report on Tuesday, May 5th. Stifel Nicolaus increased their target price on onsemi from $90.00 to $107.00 and gave the stock a “hold” rating in a research report on Wednesday. Finally, JPMorgan Chase & Co. lifted their target price on onsemi from $70.00 to $100.00 and gave the company a “neutral” rating in a report on Tuesday, May 5th. One investment analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating, fifteen have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, onsemi currently has a consensus rating of “Hold” and a consensus target price of $101.58.

onsemi Price Performance

The stock has a market cap of $36.42 billion, a PE ratio of 65.57, a price-to-earnings-growth ratio of 1.03 and a beta of 1.97. The company has a quick ratio of 3.14, a current ratio of 4.87 and a debt-to-equity ratio of 0.41. The company’s fifty day moving average is $110.31 and its 200 day moving average is $78.75.

onsemi (NASDAQ:ON) last released its quarterly earnings data on Monday, May 4th. The semiconductor company reported $0.64 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.61 by $0.03. onsemi had a net margin of 9.46% and a return on equity of 12.79%. The company had revenue of $1.51 billion during the quarter, compared to the consensus estimate of $1.49 billion. During the same period in the previous year, the firm earned $0.55 earnings per share. onsemi’s revenue for the quarter was up 4.7% on a year-over-year basis. onsemi has set its Q2 2026 guidance at 0.650-0.770 EPS. As a group, sell-side analysts anticipate that onsemi will post 3.09 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, CFO Trent Thad sold 30,000 shares of the company’s stock in a transaction on Thursday, April 23rd. The shares were sold at an average price of $93.00, for a total transaction of $2,790,000.00. Following the completion of the sale, the chief financial officer directly owned 301,194 shares of the company’s stock, valued at approximately $28,011,042. This represents a 9.06% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 0.35% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of ON. Janus Henderson Group PLC grew its stake in shares of onsemi by 10.9% in the first quarter. Janus Henderson Group PLC now owns 13,700,884 shares of the semiconductor company’s stock valued at $848,392,000 after buying an additional 1,345,894 shares in the last quarter. Ameriprise Financial Inc. raised its holdings in shares of onsemi by 7.7% during the 2nd quarter. Ameriprise Financial Inc. now owns 12,205,996 shares of the semiconductor company’s stock valued at $639,716,000 after buying an additional 877,533 shares during the period. Allspring Global Investments Holdings LLC lifted its position in onsemi by 8.1% during the 4th quarter. Allspring Global Investments Holdings LLC now owns 6,363,805 shares of the semiconductor company’s stock worth $360,828,000 after acquiring an additional 474,725 shares in the last quarter. Norges Bank acquired a new position in onsemi during the 4th quarter worth approximately $330,885,000. Finally, Rafferty Asset Management LLC boosted its holdings in onsemi by 55.0% in the 2nd quarter. Rafferty Asset Management LLC now owns 5,837,502 shares of the semiconductor company’s stock worth $305,943,000 after acquiring an additional 2,072,125 shares during the period. Institutional investors and hedge funds own 97.70% of the company’s stock.

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.