Zacks Investment Research upgraded shares of ON Semiconductor (NASDAQ:ON) from a sell rating to a hold rating in a research note published on Tuesday.
According to Zacks, “ON Semi is an original equipment manufacturer (OEM) of a broad range of discrete and embedded semiconductor components. ON Semi continues to gain from its strength in automotive and industrial end-markets. The addition of Fairchild’s offerings has expanded its product portfolio. Robust demand, adoption and favorable product mix of the company’s diversified product portfolio are key positives. Synergies from acquisitions have given ON Semi exposure to new end markets along with higher margin capabilities. We believe the acquisition of SensL Technologies, which is expected to be immediately accretive, is a positive. Shares of ON Semi have outperformed the industry in the past year. However, a considerable debt burden and integration risks from buyouts remain major headwinds. Restructuring activities are anticipated to limit margin expansion. Further, stiff competition remains a woe.”
Other analysts also recently issued research reports about the stock. KeyCorp started coverage on shares of ON Semiconductor in a report on Tuesday, September 25th. They set a sector weight rating and a $16.00 target price for the company. Raymond James downgraded shares of ON Semiconductor from an outperform rating to a market perform rating and set a $32.00 target price for the company. in a report on Tuesday, September 25th. ValuEngine downgraded shares of ON Semiconductor from a hold rating to a sell rating in a report on Monday, September 17th. BMO Capital Markets started coverage on shares of ON Semiconductor in a report on Monday, November 12th. They set a market perform rating and a $20.00 target price for the company. Finally, Morgan Stanley reduced their target price on shares of ON Semiconductor from $18.50 to $14.50 and set an underweight rating for the company in a report on Tuesday, October 30th. Three investment analysts have rated the stock with a sell rating, seven have assigned a hold rating, eight have given a buy rating and one has issued a strong buy rating to the company’s stock. The stock presently has a consensus rating of Hold and a consensus price target of $24.60.
ON Semiconductor (NASDAQ:ON) last released its quarterly earnings data on Sunday, October 28th. The semiconductor company reported $0.57 earnings per share for the quarter, topping the consensus estimate of $0.50 by $0.07. The company had revenue of $1.54 billion for the quarter, compared to analyst estimates of $1.51 billion. ON Semiconductor had a net margin of 17.24% and a return on equity of 25.97%. ON Semiconductor’s revenue for the quarter was up 10.8% compared to the same quarter last year. During the same period in the previous year, the business earned $0.44 EPS. Research analysts expect that ON Semiconductor will post 1.9 EPS for the current fiscal year.
ON Semiconductor announced that its board has initiated a share buyback plan on Thursday, November 15th that allows the company to repurchase $1.50 billion in shares. This repurchase authorization allows the semiconductor company to buy up to 20.5% of its shares through open market purchases. Shares repurchase plans are generally a sign that the company’s leadership believes its stock is undervalued.
In other ON Semiconductor news, VP Paul E. Rolls sold 31,487 shares of the business’s stock in a transaction dated Monday, December 3rd. The shares were sold at an average price of $20.00, for a total value of $629,740.00. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, Director Gilles Delfassy sold 2,000 shares of the business’s stock in a transaction dated Friday, December 14th. The shares were sold at an average price of $17.10, for a total transaction of $34,200.00. Following the completion of the sale, the director now directly owns 37,869 shares of the company’s stock, valued at approximately $647,559.90. The disclosure for this sale can be found here. Insiders sold a total of 54,470 shares of company stock valued at $1,036,757 in the last three months. Insiders own 1.29% of the company’s stock.
Hedge funds and other institutional investors have recently bought and sold shares of the business. Centaurus Financial Inc. lifted its holdings in shares of ON Semiconductor by 6.1% during the 2nd quarter. Centaurus Financial Inc. now owns 52,124 shares of the semiconductor company’s stock worth $1,159,000 after acquiring an additional 2,999 shares during the period. Metropolitan Life Insurance Co. NY lifted its holdings in shares of ON Semiconductor by 10.8% during the 2nd quarter. Metropolitan Life Insurance Co. NY now owns 33,363 shares of the semiconductor company’s stock worth $742,000 after acquiring an additional 3,242 shares during the period. Advisors Asset Management Inc. lifted its holdings in shares of ON Semiconductor by 7.7% during the 3rd quarter. Advisors Asset Management Inc. now owns 45,367 shares of the semiconductor company’s stock worth $836,000 after acquiring an additional 3,254 shares during the period. Toronto Dominion Bank lifted its holdings in shares of ON Semiconductor by 8.2% during the 3rd quarter. Toronto Dominion Bank now owns 46,448 shares of the semiconductor company’s stock worth $856,000 after acquiring an additional 3,513 shares during the period. Finally, WINTON GROUP Ltd lifted its holdings in shares of ON Semiconductor by 26.9% during the 3rd quarter. WINTON GROUP Ltd now owns 17,022 shares of the semiconductor company’s stock worth $314,000 after acquiring an additional 3,608 shares during the period. 91.71% of the stock is owned by hedge funds and other institutional investors.
ON Semiconductor Company Profile
ON Semiconductor Corporation manufactures and sells semiconductor components for various electronic devices worldwide. It operates through three segments: Power Solutions Group, Analog Solutions Group, and Image Sensor Group. The Power Solutions Group segment offers discrete, module, and integrated semiconductor products for various applications, such as power switching, power conversion, signal conditioning, circuit protection, signal amplification, and voltage reference.
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