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

Zacks Investment Research downgraded shares of ON Semiconductor (NASDAQ:ON) from a hold rating to a sell rating in a research note issued to investors on Wednesday, Zacks.com reports. Zacks Investment Research currently has $19.00 target price 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 issued reports on the company. Benchmark initiated coverage on ON Semiconductor in a research note on Friday, September 20th. They issued a buy rating and a $26.00 price objective for the company. Mizuho reaffirmed a buy rating and issued a $26.00 price objective on shares of ON Semiconductor in a research note on Monday, August 5th. Citigroup lowered their price objective on ON Semiconductor from $25.00 to $21.00 and set a buy rating for the company in a research note on Tuesday, August 6th. Raymond James raised ON Semiconductor from a market perform rating to a strong-buy rating and set a $21.00 price objective for the company in a research note on Monday, August 19th. Finally, Loop Capital lowered their price objective on ON Semiconductor to $23.00 and set a buy rating for the company in a research note on Tuesday, August 6th. Four analysts have rated the stock with a sell rating, two have assigned a hold rating, thirteen have assigned a buy rating and one has issued a strong buy rating to the company’s stock. The company currently has a consensus rating of Buy and an average target price of $24.41.

ON Semiconductor stock traded up $0.69 during midday trading on Wednesday, reaching $18.75. 9,115,943 shares of the stock traded hands, compared to its average volume of 5,297,959. The stock’s fifty day moving average is $18.60 and its 200-day moving average is $19.84. ON Semiconductor has a 12 month low of $14.55 and a 12 month high of $23.54. The stock has a market cap of $7.41 billion, a P/E ratio of 9.57, a PEG ratio of 1.75 and a beta of 2.18. 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 announced its quarterly earnings results on Sunday, August 4th. The semiconductor company reported $0.42 EPS for the quarter, meeting analysts’ consensus estimates 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 prior year, the company earned $0.46 earnings per share. The firm’s revenue was down 7.4% on a year-over-year basis. On average, equities analysts predict that ON Semiconductor will post 1.55 EPS for the current fiscal year.

In other news, VP Paul E. Rolls sold 11,467 shares of ON Semiconductor stock in a transaction on Wednesday, July 24th. The stock was sold at an average price of $22.00, for a total value of $252,274.00. The sale was disclosed in a filing with the SEC, which is available through this link. Also, EVP Simon Keeton sold 8,812 shares of ON Semiconductor stock in a transaction 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 a total of 93,545 shares of company stock worth $1,901,658 over the last quarter. Company insiders own 1.40% of the company’s stock.

Several institutional investors have recently bought and sold shares of the company. BRITISH COLUMBIA INVESTMENT MANAGEMENT Corp boosted its position in shares of ON Semiconductor by 0.9% in the 2nd quarter. BRITISH COLUMBIA INVESTMENT MANAGEMENT Corp now owns 88,517 shares of the semiconductor company’s stock worth $1,789,000 after purchasing an additional 825 shares in the last quarter. Boston Partners lifted its position in ON Semiconductor by 0.4% during the 2nd quarter. Boston Partners now owns 290,859 shares of the semiconductor company’s stock worth $5,623,000 after acquiring an additional 1,072 shares during the period. Treasurer of the State of North Carolina lifted its position in ON Semiconductor by 20.8% during the 2nd quarter. Treasurer of the State of North Carolina now owns 200,721 shares of the semiconductor company’s stock worth $4,057,000 after acquiring an additional 34,580 shares during the period. Hodges Capital Management Inc. acquired a new stake in ON Semiconductor during the 2nd quarter worth about $404,000. Finally, Magnetar Financial LLC lifted its position in ON Semiconductor by 20.4% during the 2nd quarter. Magnetar Financial LLC now owns 55,384 shares of the semiconductor company’s stock worth $1,119,000 after acquiring an additional 9,374 shares during the period. 96.06% 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. 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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