ON Semiconductor (ON) Upgraded to “Hold” by Zacks Investment Research

Zacks Investment Research upgraded shares of ON Semiconductor (NASDAQ:ON) from a sell rating to a hold rating in a report issued 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 have also recently issued research reports about the company. Raymond James cut ON Semiconductor from an outperform rating to a market perform rating and set a $32.00 price objective on the stock. in a research note on Tuesday, September 25th. KeyCorp began coverage on ON Semiconductor in a research report on Tuesday, September 25th. They set a sector weight rating and a $16.00 price target on the stock. Citigroup dropped their price target on ON Semiconductor from $28.00 to $21.00 and set a buy rating on the stock in a research report on Tuesday, October 30th. Nomura decreased their price objective on ON Semiconductor from $30.00 to $23.00 and set a buy rating for the company in a report on Tuesday, October 30th. Finally, BMO Capital Markets assumed coverage on ON Semiconductor in a report on Monday, November 12th. They issued a market perform rating and a $20.00 price objective for the company. Three investment analysts have rated the stock with a sell rating, seven have given a hold rating, eight have issued a buy rating and one has issued a strong buy rating to the company. ON Semiconductor presently has a consensus rating of Hold and a consensus price target of $24.60.

ON traded up $0.70 on Tuesday, reaching $18.59. The company’s stock had a trading volume of 458,067 shares, compared to its average volume of 5,910,626. The company has a market capitalization of $7.50 billion, a P/E ratio of 12.74, a P/E/G ratio of 0.85 and a beta of 1.94. ON Semiconductor has a 1 year low of $14.55 and a 1 year high of $27.10. The company has a debt-to-equity ratio of 0.82, a quick ratio of 1.44 and a current ratio of 2.36.

ON Semiconductor (NASDAQ:ON) last issued its quarterly earnings results on Sunday, October 28th. The semiconductor company reported $0.57 EPS for the quarter, beating analysts’ consensus estimates of $0.50 by $0.07. The firm had revenue of $1.54 billion during the quarter, compared to the consensus estimate of $1.51 billion. ON Semiconductor had a return on equity of 25.97% and a net margin of 17.24%. ON Semiconductor’s revenue for the quarter was up 10.8% on a year-over-year basis. During the same quarter in the prior year, the business posted $0.44 earnings per share. As a group, equities research analysts forecast that ON Semiconductor will post 1.9 earnings per share for the current fiscal year.

ON Semiconductor declared that its Board of Directors has initiated a share repurchase program on Thursday, November 15th that allows the company to repurchase $1.50 billion in shares. This repurchase authorization allows the semiconductor company to repurchase up to 20.5% of its shares through open market purchases. Shares repurchase programs are generally a sign that the company’s board of directors believes its stock is undervalued.

In other ON Semiconductor news, Director Daryl Ostrander sold 4,000 shares of the stock in a transaction on Tuesday, November 20th. The stock was sold at an average price of $18.01, for a total transaction of $72,040.00. Following the completion of the transaction, the director now directly owns 85,135 shares of the company’s stock, valued at approximately $1,533,281.35. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, Director Gilles Delfassy sold 2,000 shares of the stock in a transaction on Friday, December 14th. The shares were sold at an average price of $17.10, for a total value of $34,200.00. Following the transaction, the director now directly owns 37,869 shares of the company’s stock, valued at $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 over the last three months. Corporate insiders own 1.29% of the company’s stock.

Several institutional investors and hedge funds have recently added to or reduced their stakes in ON. Strs Ohio purchased a new stake in shares of ON Semiconductor in the second quarter valued at $365,000. American Century Companies Inc. purchased a new stake in shares of ON Semiconductor during the second quarter worth $271,000. Standard Life Aberdeen plc purchased a new stake in shares of ON Semiconductor during the second quarter worth $527,000. Legal & General Group Plc raised its holdings in shares of ON Semiconductor by 36.6% during the second quarter. Legal & General Group Plc now owns 575,509 shares of the semiconductor company’s stock worth $12,796,000 after acquiring an additional 154,234 shares in the last quarter. Finally, Federated Investors Inc. PA raised its holdings in shares of ON Semiconductor by 81.2% during the second quarter. Federated Investors Inc. PA now owns 66,061 shares of the semiconductor company’s stock worth $1,470,000 after acquiring an additional 29,612 shares in the last quarter. 91.71% of the stock is owned by institutional investors and hedge funds.

About ON Semiconductor

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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