Zacks Investment Research Downgrades ON Semiconductor (NASDAQ:ON) to Hold


Share on StockTwits

ON Semiconductor (NASDAQ:ON) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report released on Tuesday, Zacks.com reports. They currently have a $39.00 price target on the semiconductor company’s stock. Zacks Investment Research‘s target price indicates a potential upside of 5.43% from the company’s previous close.

According to Zacks, “ON Semiconductor is well-positioned to benefit from the solid momentum witnessed in image sensors amid consistent growth in advanced driver-assistance systems (“ADAS”) domain. Strong traction for silicon carbide (SiC) and silicon power products driven by growth in electric vehicles (EVs) augurs well. Also, healthy growth in the 5G infrastructure business favors growth prospects. Besides, the recovery seen automotive sector bodes well for the long haul. Notably, shares of the company have outperformed the industry in the past year. However, softness in demand from industrial, automotive and consumer end-markets due to the COVID-19 outbreak remains a concern, at least in the near term. Moreover, a highly leveraged balance sheet and susceptibility to forex headwinds due to sizeable international market exposure are persistent overhangs.”

ON has been the subject of several other reports. B. Riley raised their price target on ON Semiconductor from $34.00 to $40.00 and gave the stock a “buy” rating in a research report on Monday, December 14th. Craig Hallum increased their price objective on ON Semiconductor from $30.00 to $38.00 and gave the company a “buy” rating in a research note on Wednesday, December 9th. Morgan Stanley increased their price objective on ON Semiconductor from $17.00 to $24.00 and gave the company an “underweight” rating in a research note on Monday, December 14th. Smith Barney Citigroup increased their price objective on ON Semiconductor from $25.50 to $28.00 in a research note on Tuesday, November 3rd. Finally, Truist started coverage on ON Semiconductor in a research note on Thursday, December 17th. They issued a “buy” rating and a $31.00 price objective on the stock. Three research analysts have rated the stock with a sell rating, five have issued a hold rating, sixteen have issued a buy rating and one has issued a strong buy rating to the company. The stock has an average rating of “Buy” and a consensus price target of $28.58.

ON stock opened at $36.99 on Tuesday. The company has a debt-to-equity ratio of 1.24, a current ratio of 2.35 and a quick ratio of 1.62. The business has a 50 day simple moving average of $31.68 and a 200-day simple moving average of $25.12. The firm has a market capitalization of $15.21 billion, a PE ratio of -924.52, a price-to-earnings-growth ratio of 29.90 and a beta of 2.14. ON Semiconductor has a 1 year low of $8.17 and a 1 year high of $37.32.

ON Semiconductor (NASDAQ:ON) last posted its quarterly earnings results on Saturday, October 31st. The semiconductor company reported $0.27 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.19 by $0.08. The business had revenue of $1.32 billion during the quarter, compared to analyst estimates of $1.31 billion. ON Semiconductor had a positive return on equity of 10.85% and a negative net margin of 0.37%. The business’s revenue was down 4.6% compared to the same quarter last year. During the same period in the prior year, the business earned $0.33 earnings per share. On average, equities research analysts expect that ON Semiconductor will post 0.66 EPS for the current year.

In other ON Semiconductor news, EVP Simon Keeton sold 7,705 shares of the business’s stock in a transaction on Monday, November 9th. The stock was sold at an average price of $28.50, for a total value of $219,592.50. Following the completion of the transaction, the executive vice president now directly owns 124,295 shares in the company, valued at approximately $3,542,407.50. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, VP Paul E. Rolls sold 27,818 shares of the business’s stock in a transaction on Wednesday, November 11th. The shares were sold at an average price of $27.93, for a total value of $776,956.74. Following the completion of the transaction, the vice president now owns 210,880 shares of the company’s stock, valued at $5,889,878.40. The disclosure for this sale can be found here. Insiders sold a total of 239,129 shares of company stock worth $6,600,143 in the last ninety days. 1.42% of the stock is owned by corporate insiders.

Institutional investors and hedge funds have recently modified their holdings of the business. CIBC Asset Management Inc boosted its position in ON Semiconductor by 2.5% during the 3rd quarter. CIBC Asset Management Inc now owns 15,618 shares of the semiconductor company’s stock worth $339,000 after purchasing an additional 387 shares during the period. Fifth Third Bancorp raised its stake in shares of ON Semiconductor by 4.0% in the 3rd quarter. Fifth Third Bancorp now owns 11,143 shares of the semiconductor company’s stock valued at $242,000 after purchasing an additional 433 shares in the last quarter. Capital International Sarl raised its stake in shares of ON Semiconductor by 1.2% in the 3rd quarter. Capital International Sarl now owns 37,351 shares of the semiconductor company’s stock valued at $810,000 after purchasing an additional 438 shares in the last quarter. Nissay Asset Management Corp Japan ADV raised its stake in ON Semiconductor by 2.0% during the third quarter. Nissay Asset Management Corp Japan ADV now owns 47,788 shares of the semiconductor company’s stock worth $1,037,000 after acquiring an additional 944 shares during the period. Finally, DekaBank Deutsche Girozentrale raised its stake in ON Semiconductor by 0.9% during the third quarter. DekaBank Deutsche Girozentrale now owns 103,809 shares of the semiconductor company’s stock worth $2,220,000 after acquiring an additional 973 shares during the period. Institutional investors own 99.53% of the company’s stock.

ON Semiconductor Company Profile

ON Semiconductor Corporation, together with its subsidiaries, manufactures and sells semiconductor components for various electronic devices worldwide. The company operates in three segments: Power Solutions Group (PSG), Advanced Solutions Group (ASG), and Intelligent Sensing Group (ISG). The PSG segment offers analog, discrete, module, and integrated semiconductor products for various applications, such as power switching and conversion, signal conditioning, circuit protection, signal amplification, and voltage regulation functions.

Recommended Story: Why do companies issue convertible shares?

Get a free copy of the Zacks research report on ON Semiconductor (ON)

For more information about research offerings from Zacks Investment Research, visit Zacks.com

Analyst Recommendations for ON Semiconductor (NASDAQ:ON)

Receive News & Ratings for ON Semiconductor Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for ON Semiconductor and related companies with MarketBeat.com's FREE daily email newsletter.