ON Semiconductor (NASDAQ:ON) has been making waves in the semiconductor industry with its innovative solutions and technology, positioning itself as a leader in the market. Recently, stock analysts at Benchmark raised their price objective for ON Semiconductor from $95.00 to $110.00 in a research note issued to investors on June 20, 2023, as reported by The Fly. This new price target points towards a potential upside of 22.02% from the stock’s previous close.
ON Semiconductor last announced its quarterly earnings data on May 1st, reporting a $1.19 EPS for the quarter, which surpassed analysts’ consensus estimates of $1.09 by $0.10. Notably, during this quarter, ON Semiconductor had revenue of $1.96 billion against a consensus estimate of $1.93 billion. Their return on equity was an impressive 39.27%, with net margins of 21.98%. We can see that the company is not only showing strong performance but also moving significantly ahead of expectations set by analysts.
The semiconductors provided by ON semiconductor are instrumental in some of today’s key industries such as vehicle electrification and safety, sustainable energy grids, industrial automation, and 5G and cloud infrastructure. These industries represent markets where they are focused and have shown consistent growth despite economic uncertainties globally.
ON Semiconductor operates through three segments: Power Solutions Group, Advanced Solutions Group and Intelligent Sensing Group- each catering to different verticals and respective industries it provides service for.
Their focus on disruptive innovation has helped them stay relevant in competitive environments such as those witnessed within the industry today; leading to higher customer satisfaction rates by providing continuous value-addition growing relationships with clients.
Sell-side analysts expect ON Semiconductor to post a significant increase in earnings per share this year- estimated at 4.87- proof that the company is well-positioned to present substantial results over this period. The semiconductor industry itself is projected to experience double-digit growth in the next decade, with key players such as ON Semiconductor poised to capture a significant portion of this growth.
Overall, ON Semiconductor has shown remarkable performance and consistency in their operations in recent times. Their strong focus on innovation and user-focused strategies positions them well for success and keeps their potential and perceived value high, leading to raised price expectations by top market research firms. With their further engagement in sustainable energy grids makes them an ideal option for investors looking to align their investments with environmentally friendly causes. As a result, we strongly recommend keeping an eye out for further developments from the company over the coming months.
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ON Semiconductor Receives Increased Attention from Analysts as Innovation Boosts Stock Price Targets
ON Semiconductor (ON), a supplier of power and analog semiconductors, has been receiving increased attention from analysts. The company has seen several target price increases by banks such as Stifel Nicolaus, Bank of America, Mizuho and Needham & Company LLC. BMO Capital Markets also lifted their price target on shares of ON Semiconductor to $80.00. This was likely due to the company’s recent innovative developments in fields such as vehicle electrification and safety, sustainable energy grids, industrial automation, 5G and cloud infrastructure.
The average rating of ON Semiconductor’s stock is currently “Moderate Buy” with analysts at seven equities research firms assigning a hold rating, nineteen assigning a buy rating and one assigning a strong buy rating to the company’s stock. Based on Bloomberg data, the consensus price target for ON Semi is $92.12.
ON Semiconductor opened at $90.15 in trading today with a market cap of $38.93 billion. The firm operates through three segments: Power Solutions Group, Advanced Solutions Group and Intelligent Sensing Group.
The CEO of ON Semi recently sold 5,000 shares of the company’s stock in a transaction valued at approximately $409K whilst insiders have sold 32,500 shares worth $2.82M over the last ninety days. Meanwhile institutional investors have shown increased interest in the semiconductor space with companies like Godsey & Gibb Inc., FinTrust Capital Advisors LLC and BerganKDV Wealth Management LLC acquiring new stakes in ON Semi during the first quarter.
Overall this suggests that whilst there may be some selling pressure from insiders there are still plenty of buyers looking towards this innovative company as it continues to develop its operations across multiple sectors including automotive and industrial end-markets; something which has not gone unnoticed among the investment community evaluating this promising firm ahead of future growth opportunities later this year.