ON Semiconductor (NASDAQ:ON) Releases Earnings Results, Beats Expectations By $0.02 EPS

ON Semiconductor (NASDAQ:ON) posted its quarterly earnings data on Monday. The semiconductor company reported $0.64 earnings per share for the quarter, topping analysts’ consensus estimates of $0.62 by $0.02, FiscalAI reports. The business had revenue of $1.53 billion for the quarter, compared to analyst estimates of $1.54 billion. ON Semiconductor had a return on equity of 13.60% and a net margin of 5.16%.

ON Semiconductor Stock Performance

NASDAQ ON traded down $0.10 during trading on Monday, reaching $65.10. The company’s stock had a trading volume of 11,922,265 shares, compared to its average volume of 9,714,571. ON Semiconductor has a twelve month low of $31.04 and a twelve month high of $66.86. The firm has a market cap of $26.19 billion, a price-to-earnings ratio of 84.55, a P/E/G ratio of 2.83 and a beta of 1.56. The business’s fifty day moving average price is $58.09 and its 200-day moving average price is $52.93. The company has a debt-to-equity ratio of 0.43, a quick ratio of 3.54 and a current ratio of 5.23.

ON Semiconductor News Roundup

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

• Positive Sentiment: Momentum ahead of earnings — ON is in the spotlight as Q4 results approach, drawing trader/institutional attention and driving intraday buying interest. ON Semiconductor In Focus As Q4 Earnings Approach
• Positive Sentiment: Healthy balance-sheet cues — ON’s liquidity (high quick and current ratios) and modest leverage support downside resilience if results are mixed; that can encourage buyers ahead of the print. No external link
• Neutral Sentiment: Earnings timing — The company is due to report Q4 results today after the market close; headlines and guidance will likely drive near-term volatility and set direction for the stock. Becton Dickinson, ON Semiconductor And 3 Stocks To Watch Heading Into Monday
• Negative Sentiment: Analysts trimming Q4 forecasts — The most accurate analysts have revised estimates lower ahead of the call, signaling an elevated risk of an earnings miss or weak guidance that could trigger a pullback. Investors should watch EPS, revenue, and any margin or inventory commentary closely. ON Semiconductor Likely To Report Lower Q4 Earnings; These Most Accurate Analysts Revise Forecasts Ahead Of Earnings Call
• Negative Sentiment: High valuation — ON’s elevated P/E and PEG ratios leave limited room for disappointment; a weak report or cautious guidance could produce outsized downside versus peers. No external link

Wall Street Analyst Weigh In

Several analysts recently weighed in on the stock. Truist Financial raised their target price on shares of ON Semiconductor from $51.00 to $57.00 and gave the company a “hold” rating in a report on Friday, December 19th. Wells Fargo & Company lifted their price objective on shares of ON Semiconductor from $62.00 to $70.00 and gave the stock an “overweight” rating in a research report on Thursday, January 15th. Weiss Ratings downgraded shares of ON Semiconductor from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Friday, January 30th. UBS Group reiterated a “neutral” rating on shares of ON Semiconductor in a report on Monday, February 2nd. Finally, Williams Trading set a $60.00 target price on ON Semiconductor in a research note on Tuesday, November 4th. Thirteen equities research analysts have rated the stock with a Buy rating, fifteen have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the stock presently has an average rating of “Hold” and a consensus price target of $61.30.

Insider Activity at ON Semiconductor

In other news, CFO Trent Thad sold 20,000 shares of ON Semiconductor stock in a transaction dated Wednesday, December 3rd. The shares were sold at an average price of $55.05, for a total value of $1,101,000.00. Following the sale, the chief financial officer owned 379,448 shares of the company’s stock, valued at $20,888,612.40. The trade was a 5.01% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Company insiders own 0.31% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Ameriprise Financial Inc. increased its position in ON Semiconductor by 7.7% during the 2nd quarter. Ameriprise Financial Inc. now owns 12,205,996 shares of the semiconductor company’s stock worth $639,716,000 after purchasing an additional 877,533 shares in the last quarter. Rafferty Asset Management LLC grew its holdings in ON Semiconductor by 55.0% in the second quarter. Rafferty Asset Management LLC now owns 5,837,502 shares of the semiconductor company’s stock valued at $305,943,000 after purchasing an additional 2,072,125 shares during the period. Two Sigma Investments LP raised its stake in ON Semiconductor by 636.1% during the third quarter. Two Sigma Investments LP now owns 3,749,751 shares of the semiconductor company’s stock worth $184,900,000 after purchasing an additional 3,240,375 shares during the period. Voloridge Investment Management LLC boosted its holdings in shares of ON Semiconductor by 53.3% in the 3rd quarter. Voloridge Investment Management LLC now owns 3,331,427 shares of the semiconductor company’s stock valued at $164,273,000 after purchasing an additional 1,157,962 shares during the last quarter. Finally, Legal & General Group Plc grew its stake in shares of ON Semiconductor by 3.0% during the 3rd quarter. Legal & General Group Plc now owns 2,836,802 shares of the semiconductor company’s stock valued at $139,883,000 after buying an additional 83,107 shares during the period. Institutional investors and hedge funds own 97.70% of the company’s stock.

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

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.