ON Semiconductor (NASDAQ:ON) Downgraded by Zacks Investment Research to Sell

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Zacks Investment Research cut shares of ON Semiconductor (NASDAQ:ON) from a hold rating to a sell rating in a report released on Wednesday, Zacks.com reports. They currently have $19.00 price target on the semiconductor company’s stock.

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 equities research analysts have also commented on the company. B. Riley reiterated a buy rating on shares of ON Semiconductor in a research note on Monday, August 5th. BNP Paribas assumed coverage on ON Semiconductor in a research note on Friday, August 30th. They set an outperform rating for the company. ValuEngine lowered ON Semiconductor from a hold rating to a sell rating in a research note on Monday, October 7th. Mizuho reiterated a buy rating and set a $26.00 price objective on shares of ON Semiconductor in a research note on Monday, August 5th. Finally, Benchmark started coverage on ON Semiconductor in a research note on Friday, September 20th. They set a buy rating and a $26.00 price objective for the company. Four analysts have rated the stock with a sell rating, two have given a hold rating, thirteen have assigned a buy rating and one has given a strong buy rating to the stock. The stock has a consensus rating of Buy and a consensus target price of $24.41.

NASDAQ:ON traded up $0.69 during trading hours on Wednesday, hitting $18.75. 9,115,943 shares of the stock were exchanged, compared to its average volume of 5,297,959. ON Semiconductor has a 52-week low of $14.55 and a 52-week high of $23.54. The firm’s fifty day moving average price is $18.60 and its 200 day moving average price is $19.84. The company has a current ratio of 2.42, a quick ratio of 1.41 and a debt-to-equity ratio of 1.08. The company has a market cap of $7.41 billion, a P/E ratio of 9.57, a P/E/G ratio of 1.75 and a beta of 2.18.

ON Semiconductor (NASDAQ:ON) last posted its quarterly earnings data on Sunday, August 4th. The semiconductor company reported $0.42 EPS for the quarter, hitting the Thomson Reuters’ consensus estimate of $0.42. ON Semiconductor had a return on equity of 25.36% and a net margin of 9.49%. The company had revenue of $1.35 billion during the quarter, compared to analyst estimates of $1.38 billion. During the same period in the previous year, the business earned $0.46 EPS. ON Semiconductor’s quarterly revenue was down 7.4% on a year-over-year basis. Equities analysts expect that ON Semiconductor will post 1.55 EPS for the current fiscal year.

In related news, VP Paul E. Rolls sold 11,467 shares of the company’s stock in a transaction that occurred on Wednesday, July 24th. The stock was sold at an average price of $22.00, for a total value of $252,274.00. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, EVP Simon Keeton sold 8,812 shares of the company’s stock in a transaction that occurred on Thursday, September 12th. The shares were sold at an average price of $20.02, for a total value of $176,416.24. Following the completion of the transaction, the executive vice president now owns 119,101 shares in the company, valued at $2,384,402.02. The disclosure for this sale can be found here. Insiders sold 93,545 shares of company stock valued at $1,901,658 over the last 90 days. Company insiders own 1.40% of the company’s stock.

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Janus Henderson Group PLC lifted its stake in ON Semiconductor by 19.4% during the second quarter. Janus Henderson Group PLC now owns 36,912,800 shares of the semiconductor company’s stock worth $746,008,000 after purchasing an additional 6,008,620 shares in the last quarter. Point72 Asset Management L.P. lifted its stake in ON Semiconductor by 185.3% during the second quarter. Point72 Asset Management L.P. now owns 5,706,798 shares of the semiconductor company’s stock worth $115,334,000 after purchasing an additional 3,706,611 shares in the last quarter. Villere ST Denis J & Co. LLC acquired a new position in ON Semiconductor during the second quarter worth $68,973,000. Nuveen Asset Management LLC lifted its stake in ON Semiconductor by 206.8% during the second quarter. Nuveen Asset Management LLC now owns 3,681,173 shares of the semiconductor company’s stock worth $74,397,000 after purchasing an additional 2,481,156 shares in the last quarter. Finally, Westfield Capital Management Co. LP lifted its stake in ON Semiconductor by 120.4% during the second quarter. Westfield Capital Management Co. LP now owns 4,101,364 shares of the semiconductor company’s stock worth $82,889,000 after purchasing an additional 2,240,369 shares in the last quarter. Hedge funds and other institutional investors own 96.06% of the company’s stock.

ON Semiconductor Company Profile

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.

See Also: Trading on Margin

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