In a recent report, research analysts at Morgan Stanley have lowered their price target for ON Semiconductor (NASDAQ:ON) from $116.00 to $110.00. The semiconductor company currently holds an “equal weight” rating from the firm. However, despite the lowered price target, Morgan Stanley’s analysis suggests that there is still a potential upside of 16.17% from the stock’s current price.
On Wednesday, NASDAQ:ON traded up $1.37 during trading hours and reached $94.69. A total of 815,158 shares were exchanged, compared to its average volume of 6,310,284 shares. ON Semiconductor has a market cap of $40.89 billion with a PE ratio of 21.62 and a beta of 1.77.
The company’s financial indicators show a current ratio of 2.39 and a quick ratio of 1.60, indicating healthy liquidity levels for ON Semiconductor. It also has a debt-to-equity ratio of 0.37, which suggests that the company has managed its debt well.
Over the past twelve months, ON Semiconductor has experienced a low of $54.93 and a high of $111.35 in terms of stock prices. Currently, the stock’s 50-day moving average stands at $95.20 and its 200-day moving average is at $89.64.
Looking at institutional investors’ activity in the stock market, hedge funds and other institutional investors have recently been involved in buying and selling ON Semiconductor shares. For example, Bank Julius Baer & Co.Ltd Zurich significantly increased its position in the company during the second quarter by acquiring an additional 99,064,396 shares valued at approximately $9,380 million USD.
Additionally, Vanguard Group Inc., Artisan Partners Limited Partnership, Geode Capital Management LLC, and Moneta Group Investment Advisors LLC all either raised their holdings or lifted their positions in ON Semiconductor during different quarters.
ON Semiconductor last released its quarterly earnings results on July 31st. The company reported earnings per share of $1.33 for the quarter, surpassing the consensus estimate of $1.21 by $0.12. This indicates a positive performance for ON Semiconductor, with a net margin of 23.41% and a return on equity of 36.71%.
The revenue for the quarter stood at $2.09 billion compared to the consensus estimate of $2.02 billion, representing a year-over-year increase of 0.5%. Although there was a slight decrease in EPS from the previous year’s same quarter ($1.34), analysts still anticipate that ON Semiconductor will post strong earnings per share of 5.25 for the current fiscal year.
In conclusion, despite having its price target lowered by Morgan Stanley, ON Semiconductor has potential growth prospects ahead as suggested by analysts’ estimations and recent financial performance indicators. Investors should closely monitor any further developments or updates regarding the company’s operations and market conditions.
Analyst Reviews and Insider Selling Shed Light on ON Semiconductor’s Performance and Potential Growth
In recent months, ON Semiconductor has garnered significant attention from analysts and investors alike. Various reports have been released, shedding light on the company’s performance and potential for growth. Notably, Citigroup raised their price target on ON Semiconductor from $118.00 to $125.00, emphasizing a positive outlook for the stock. Meanwhile, BNP Paribas downgraded the company’s shares from an “outperform” to a “neutral” rating with a target price of $95.00.
Bank of America also weighed in, increasing their price target on ON Semiconductor from $120.00 to $130.00 while maintaining a “buy” rating. These favorable assessments suggest that many experts see promising prospects for the company moving forward.
Similarly, Rosenblatt Securities expressed neutrality with their target price of $100.00 and categorized the stock as “neutral.” This sentiment further highlights differing opinions within the investment community.
Taking all these viewpoints into account, it is clear that there is considerable diversity regarding how ON Semiconductor should be viewed and evaluated by investors.
As of October 11, 2023, eleven investment analysts have rated the stock with a hold rating, whereas eighteen have issued a buy rating – indicating more optimism about its performance than pessimism. Combining these ratings together results in an average consensus among analysts that gives ON Semiconductor a “Moderate Buy” label.
In addition to analyst ratings, recent insider activities have also attracted attention within the investing community. Executive Vice President Simon Keeton sold 10,276 shares of ON Semiconductor’s stock on Thursday, July 13th at an average price of $100.00 per share. The transaction amounted to a total value of $1,027,600.00.
This sale was promptly reported to the U.S Securities and Exchange Commission (SEC) in compliance with regulatory guidelines aimed at facilitating transparent disclosure practices within financial markets.
Another top-level executive involved in insider selling was Chief Accounting Officer Bernard Raymond Colpitts, Jr. He liquidated 2,795 shares of the company’s stock on Monday, September 11th at an average price of $99.18 per share. The total transaction value amounted to $277,208.10.
Similar to Keeton’s transaction, this sale was also disclosed in a filing with the SEC, reinforcing ON Semiconductor’s commitment to transparency.
The combined insider selling by Keeton and Colpitts amounted to 46,618 shares with a total value of $4,827,746 during the last quarter. While insiders hold only 0.27% of the company’s stock, these transactions may still attract attention from investors who closely follow executives’ actions as indicators of future performance.
In conclusion, ON Semiconductor has drawn considerable interest from analysts and investors due to recent reports and insider activities. Though ratings have varied among analysts—with some suggesting a “buy” rating and others taking a more cautious approach—ON Semiconductor currently stands as a promising investment opportunity based on an average consensus rating of “Moderate Buy.” The disclosure of insider transactions has provided further insight into the company’s financial health and potential for future growth. As always, investors should conduct their own due diligence before making any investment decisions.