Wall Street Zen Downgrades ON Semiconductor (NASDAQ:ON) to Hold

ON Semiconductor (NASDAQ:ON) was downgraded by research analysts at Wall Street Zen from a “buy” rating to a “hold” rating in a research note issued to investors on Sunday.

Several other analysts also recently issued reports on ON. Evercore reissued an “outperform” rating on shares of ON Semiconductor in a research note on Wednesday, January 7th. JPMorgan Chase & Co. upped their target price on ON Semiconductor from $56.00 to $70.00 and gave the company a “neutral” rating in a research note on Tuesday, February 10th. Barclays started coverage on ON Semiconductor in a report on Thursday, February 12th. They issued an “equal weight” rating and a $75.00 price target on the stock. Weiss Ratings cut ON Semiconductor from a “hold (c-)” rating to a “sell (d+)” rating in a report on Friday, January 30th. Finally, Stifel Nicolaus upped their price objective on ON Semiconductor from $50.00 to $60.00 and gave the company a “hold” rating in a research report on Friday, January 16th. Twelve analysts have rated the stock with a Buy rating, seventeen have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, the company currently has an average rating of “Hold” and a consensus target price of $64.19.

ON Semiconductor Trading Up 1.5%

ON stock opened at $58.55 on Friday. ON Semiconductor has a twelve month low of $31.04 and a twelve month high of $73.76. The stock has a market capitalization of $23.07 billion, a price-to-earnings ratio of 172.21, a price-to-earnings-growth ratio of 0.62 and a beta of 1.52. The company has a quick ratio of 2.98, a current ratio of 4.52 and a debt-to-equity ratio of 0.39. The firm’s fifty day simple moving average is $63.64 and its two-hundred day simple moving average is $55.39.

ON Semiconductor (NASDAQ:ON) last released its earnings results on Monday, February 9th. The semiconductor company reported $0.64 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.62 by $0.02. ON Semiconductor had a net margin of 2.02% and a return on equity of 12.22%. The firm had revenue of $1.53 billion during the quarter, compared to analyst estimates of $1.54 billion. During the same quarter last year, the business earned $0.95 EPS. The business’s revenue was down 11.2% on a year-over-year basis. ON Semiconductor has set its Q1 2026 guidance at 0.560-0.660 EPS. As a group, analysts anticipate that ON Semiconductor will post 2.6 earnings per share for the current year.

ON Semiconductor declared that its Board of Directors has approved a share buyback program on Tuesday, November 18th that authorizes the company to buyback $6.00 billion in outstanding shares. This buyback authorization authorizes the semiconductor company to repurchase up to 32.7% of its shares through open market purchases. Shares buyback programs are usually an indication that the company’s board believes its stock is undervalued.

Insider Activity at ON Semiconductor

In related news, CFO Trent Thad sold 60,000 shares of the stock in a transaction that occurred on Thursday, February 12th. The stock was sold at an average price of $71.22, for a total value of $4,273,200.00. Following the transaction, the chief financial officer owned 339,460 shares of the company’s stock, valued at $24,176,341.20. This represents a 15.02% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Hassane El-Khoury sold 20,000 shares of the firm’s stock in a transaction on Thursday, February 12th. The stock was sold at an average price of $73.02, for a total value of $1,460,400.00. Following the transaction, the chief executive officer owned 1,015,610 shares in the company, valued at $74,159,842.20. The trade was a 1.93% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 0.31% of the company’s stock.

Institutional Investors Weigh In On ON Semiconductor

Several hedge funds have recently made changes to their positions in the company. AQR Capital Management LLC lifted its stake in ON Semiconductor by 187.9% in the first quarter. AQR Capital Management LLC now owns 121,357 shares of the semiconductor company’s stock worth $4,863,000 after acquiring an additional 79,206 shares during the period. Geneos Wealth Management Inc. grew its holdings in ON Semiconductor by 61.2% during the 1st quarter. Geneos Wealth Management Inc. now owns 1,335 shares of the semiconductor company’s stock worth $54,000 after acquiring an additional 507 shares in the last quarter. Savant Capital LLC purchased a new position in ON Semiconductor during the 2nd quarter valued at about $269,000. Los Angeles Capital Management LLC purchased a new position in ON Semiconductor during the 2nd quarter valued at about $460,000. Finally, National Pension Service raised its holdings in shares of ON Semiconductor by 19.2% in the 2nd quarter. National Pension Service now owns 25,121 shares of the semiconductor company’s stock valued at $1,317,000 after purchasing an additional 4,049 shares in the last quarter. 97.70% of the stock is currently owned by hedge funds and other institutional investors.

ON Semiconductor News Summary

Here are the key news stories impacting ON Semiconductor this week:

• Positive Sentiment: Q4 results contained an earnings beat and management provided Q1 EPS guidance, which supports near-term expectations for profitability and gives a baseline for investors to model recovery. Here’s Why ON Semiconductor Corp. (ON) Fell More Than Broader Market
• Neutral Sentiment: Street coverage is mixed-to-cautious: the consensus analyst stance is around “Hold,” which limits upside from upgrades but reduces the likelihood of aggressive downgrades right away. ON Semiconductor Receives Average Recommendation of “Hold”
• Negative Sentiment: Leadership change in a core growth business — Simon Keeton’s resignation from officer roles in the Power Solutions Group — has raised execution and continuity concerns for ON’s automotive/energy-efficient power roadmap, putting pressure on the stock. Did a Key Power Unit Leadership Exit Just Shift ON Semiconductor’s (ON) Investment Narrative?
• Negative Sentiment: Underlying revenue trends are weak (quarterly revenue declined year-over-year and missed Street expectations), and several articles note the stock’s pullback since earnings — these fundamentals and investor skepticism are the main reasons for recent downside pressure. Why Is ON Semiconductor Corp. (ON) Down 11.6% Since Last Earnings Report?

About ON Semiconductor

ON Semiconductor, which operates under the onsemi brand, is a global supplier of semiconductor components and related solutions. The company designs, manufactures and sells a broad portfolio that includes power and analog devices, discrete components, sensors and custom mixed-signal products. Its offerings are used to manage, convert and sense electrical power and signals across a wide range of electronic systems.

ON Semiconductor serves customers in key end markets such as automotive, industrial, cloud power and communications, as well as consumer and computing applications.