ON Semiconductor (NASDAQ:ON) Downgraded to “Sell” at Zacks Investment Research

Zacks Investment Research lowered shares of ON Semiconductor (NASDAQ:ON) from a hold rating to a sell rating in a report released on Wednesday, Zacks.com reports. Zacks Investment Research currently has $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.”

A number of other research firms have also commented on ON. BidaskClub raised ON Semiconductor from a strong sell rating to a sell rating in a research note on Thursday, September 12th. ValuEngine lowered ON Semiconductor from a hold rating to a sell rating in a research note on Monday. Cowen reissued an outperform rating and issued a $25.00 price objective (down previously from $29.00) on shares of ON Semiconductor in a research note on Tuesday, August 6th. BNP Paribas assumed coverage on ON Semiconductor in a research note on Friday, August 30th. They issued an outperform rating on the stock. Finally, Raymond James raised ON Semiconductor from a market perform rating to a strong-buy rating and set a $21.00 price objective on the stock in a research note on Monday, August 19th. Four equities research analysts have rated the stock with a sell rating, two have given a hold rating, thirteen have assigned a buy rating and one has assigned a strong buy rating to the stock. ON Semiconductor currently has a consensus rating of Buy and a consensus target price of $24.41.

ON stock traded up $0.09 during trading on Wednesday, hitting $18.00. The company had a trading volume of 374,462 shares, compared to its average volume of 5,070,259. The company has a fifty day moving average price of $18.59 and a two-hundred day moving average price of $19.87. 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 $7.35 billion, a P/E ratio of 9.24, a P/E/G ratio of 1.75 and a beta of 2.18. ON Semiconductor has a fifty-two week low of $14.55 and a fifty-two week high of $23.54.

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 the Thomson Reuters’ consensus estimate of $0.42. The business had revenue of $1.35 billion for the quarter, compared to analyst estimates of $1.38 billion. ON Semiconductor had a return on equity of 25.36% and a net margin of 9.49%. ON Semiconductor’s quarterly revenue was down 7.4% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.46 EPS. On average, analysts expect that ON Semiconductor will post 1.55 earnings per share for the current year.

In other news, Director Emmanuel T. Hernandez sold 30,000 shares of the business’s stock in a transaction on Wednesday, July 24th. The stock was sold at an average price of $22.00, for a total transaction of $660,000.00. Following the completion of the sale, the director now owns 100,994 shares in the company, valued at $2,221,868. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, CFO Bernard Gutmann sold 43,266 shares of the business’s stock in a transaction on Monday, September 30th. The stock was sold at an average price of $18.79, for a total value of $812,968.14. Following the sale, the chief financial officer now owns 700,344 shares of the company’s stock, valued at approximately $13,159,463.76. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 93,545 shares of company stock valued at $1,901,658. 1.40% of the stock is currently owned by corporate insiders.

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in ON. Oakworth Capital Inc. acquired a new position in ON Semiconductor in the second quarter valued at about $28,000. Front Row Advisors LLC grew its stake in ON Semiconductor by 2,244.3% in the first quarter. Front Row Advisors LLC now owns 1,430 shares of the semiconductor company’s stock valued at $29,000 after acquiring an additional 1,369 shares during the period. Stonebridge Capital Advisors LLC acquired a new position in ON Semiconductor in the second quarter valued at about $71,000. Redhawk Wealth Advisors Inc. acquired a new position in ON Semiconductor in the second quarter valued at about $77,000. Finally, Stephens Inc. AR grew its stake in ON Semiconductor by 11.2% in the second quarter. Stephens Inc. AR now owns 4,983 shares of the semiconductor company’s stock valued at $101,000 after acquiring an additional 503 shares during the period. Institutional investors and hedge funds own 96.06% of the company’s stock.

About ON Semiconductor

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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