Now Is A Suitable Moment For A Long-Term Purchase Of ON Semiconductor Corporation (NASDAQ: ON)


    BlackRock Fund Advisors recently announced the acquisition of new stake in ON Semiconductor Corporation (NASDAQ:ON). The institutional investor has increased its shareholding in the Technology company by 0.72% to 19.2 million shares with purchase of 0.14 million shares. This fresh investment now brings its stake to 4.68% valued currently at $395.46 million. In addition, Capital Research & Management Co.. raised its holdings by 0.74 million to 18.72 million shares. And Columbia Management Investment Ad.. has lifted its position by 10.24% or 1.5 million shares – to 16.1 million shares.

    With over 7.05 million ON Semiconductor Corporation (ON) shares trading Tuesday and a closing price of $21.75 on the day, the dollar volume was approximately $153.27 million. The shares have shown a positive weekly performance of 0.74% and its price on 09/01/20 gained nearly 1.78%. Currently, there are 410.10M common shares owned by the public and among those 405.60M shares have been available to trade.

    An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 26 analysts who have offered their price forecasts for ON have a consensus price objective of $23.98. The analysts have set the share’s price value over the next 12 months at a high of $35.00 and a low of $16.00 should the stock experience a downside. Incidentally, analysts’ outlook for the ON Semiconductor Corporation stock is 2.40 for the next 12 months. The average price target is 9.15% above its last price level and an upside to the estimated low will see the stock lose -35.94% over that period. But an upside of 37.86% will see the stock hit the forecast high price target while mean target price for the stock is $25.00.

    Insiders at the company have transacted a total of 73 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 12 of these insider trades were purchases, accounting for 566,085 shares. Insider sales of the common stock occurred on 61 occasions, with total insider shares sold totaling 1,135,437 shares.

    The top 3 mutual fund holders in ON Semiconductor Corporation are Janus Henderson Enterprise Fund, Vanguard Total Stock Market Index, and Vanguard Small Cap Index Fund. Janus Henderson Enterprise Fund owns 14.68 million shares of the company’s stock, all valued at over $302.51 million. The company sold -2.12 million shares recently to bring their total holdings to about 3.58% of the shares outstanding. Vanguard Total Stock Market Index sold 6968.0 shares to see its total holdings shrink to 11.68 million shares valued at over $240.53 million and representing 2.85% of the shares outstanding. Vanguard Small Cap Index Fund sold 83740.0 shares to bring its total holdings to over 10.18 million shares at a value of $209.81 million. Vanguard Small Cap Index Fund now owns shares totaling to 2.48% of the shares outstanding.

    Shares of ON Semiconductor Corporation (NASDAQ: ON) opened at $21.50, up $0.13 from a prior closing price of $21.37. However, the script later closed the day at $21.75, up 1.78%. The company’s stock has a 5-day price change of 0.74% and 15.51% over the past three months. ON shares are trading -10.79% year to date (YTD), with the 12-month market performance up to 24.64% higher. It has a 12-month low price of $8.17 and touched a high of $25.92 over the same period. Currently, 7.05 million shares have been traded, compared to an average intraday trading volume of 8.09 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 0.68%, 4.15%, and 12.50% respectively.

    Institutional ownership of ON Semiconductor Corporation (NASDAQ: ON) 410.10M shares outstanding. Mutual fund holders own 39.07%, while other institutional holders and individual stakeholders account for 63.35% and 2.63% respectively.

    It has a market capitalization of $8.65B and a beta (3y monthly) value of 2.18. The earnings-per-share (ttm) stands at -$0.05. Price movements for the stock have been influenced by the stock’s volatility, which stands at 3.19% over the week and 2.89% over the month.

    Analysts forecast that ON Semiconductor Corporation (ON) will achieve an EPS of $0.2 for the current quarter, $0.24 for the next quarter and $1.31 for 2021. The lowest estimate earnings-per-share for the quarter is $0.16 while analysts give the company a high EPS estimate of $0.24. Comparatively, EPS for the current quarter was $0.33 a year ago. Earnings per share for the fiscal year are expected to decrease by -61.70%, and 95.81% over the next financial year. EPS should grow at an annualized rate of 11.38% over the next five years, compared to 3.50% over the past 5-year period.

    If you are looking to buy this stock, then you may note that the average analyst recommendation by 26 brokerage firm advisors rate ON Semiconductor Corporation (ON) as a “Moderate Buy” at a consensus score of 2.40. Specifically, 13 Wall Street analysts polled rate the stock as a buy, while 9 of the 26 advise that investors “hold,” and 2 rated it as a “Sell.”

    Looking at the support for the ON, a number of firms have released research notes about the stock. Craig Hallum stated their Buy rating for the stock in a research note on August 11, 2020, with the firm’s price target at $22-$26. B. Riley FBR coverage for the ON Semiconductor Corporation (ON) stock in a research note released on July 22, 2020 offered a Buy rating with a price target of $26. Piper Sandler was of a view on June 23, 2020 that the stock is Overweight, while Morgan Stanley gave the stock Underweight rating on June 16, 2020, issuing a price target of $12- $14. Rosenblatt on their part issued Buy rating on June 05, 2020.


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