Stock analysts at Wells Fargo, assumed coverage of shares of ON Semiconductor Corporation (NASDAQ:ON) with Market Perform recommendation, according to their opinion released on November 25.
For the period that ended November 15, 2019, the short interest in ON Semiconductor Corporation (NASDAQ:ON) stock is on the up. The 9.5% rise could be an indication that investors and traders expect a drop in the share price, often as a result of a drop in the business’ fundamentals. The average brokerage opinion at 2.2 suggests acquiring these shares. Between October 31 and November 15, the total count of shorted shares totalled 27.31 million. That number was 2,368,793 more shares compared with the total of 24.94 million shares in the space of prior two weeks, which suggests more traders or funds are betting that the company stock will move down. The average daily volume for ON at the November 15th settlement retreated to 4,692,380, versus 7,185,861 at the October 31st report. That led days to cover to move at 5.81903, a 67.69% increase compared to the 3.470191 days to cover recorded at the prior short interest data release.
Let’s take a glimpse at some insider activity at ON Semiconductor Corporation (NASDAQ:ON) and observe the pattern. The earliest insider trade happened on 11/05/2019. OSTRANDER DARYL parted with a total of 3 thousand shares of the firm at average share price of $22.14. The total amount for the sale was set at $66.42 thousand. On completing this exchange, the Director account balance was 93.47 thousand shares. The stock lost -3.52 percent from that insider sale. On 11/05/2019, Schromm William A., EVP & COO, did a sale of 10 thousand shares at a price of $22.01 per share. This got rid of 220.1 thousand shares from the insider’s fortune and the stock experienced a -2.95 percent retreat in price since the news became public. This exchange saw 716.41 thousand shares get out from the EVP & COO account. On 10/30/2019, EVP & GM, ASG HOPKIN VINCE CRAIG recorded a sale transaction valued at $51.47 thousand. The sale at $20.95 a share has eliminated 2.46 thousand shares from the insider’s portfolio position. Meanwhile, shares price witnessed 1.96 percent increase since the transaction reporting date. The company insider is left with 103.85 thousand shares remaining in the account. Schromm William A., who works as EVP & COO at the company, performed a sale of 20 thousand shares in a transaction worth $410 thousand. The disposal recorded on 10/28/2019 was priced at $20.5 per share. The stock price soared 4.2 percent since the transaction. Schromm William A. currently holds a stake of 726.41 thousand in ON stock which is worth $15.52 million after the insider selling.
ON Semiconductor Corporation (ON) is most likely going to rise 10.86 percent in the coming 12 months, as per price target approximations compiled by finviz. Nevertheless, they have set the price target at a $28-month high price target. This represents a whopping 31.09 percent increase from the current trading of shares. The 52-week median price target given by the analysts is $25, which means a return possibility of 17.04 percent in comparison with the closing price of the stock of $21.36 on December 02. The lowest price set for the stock is $15 — just above -29.78 percent from ON share price now.
The stock is lingering around the initial support level of $21.1. After this, the following support is at the zone of $20.85. Up until the time the ON stock hit levels beyond the current one, bulls should have no alarm. In terms of its momentum, the stock’s RSI hit 55.21 on the daily chart, and this may be a cause for concern. In case the price goes below $20.85 level on closing basis, there may be more profit booking with the stock growing weaker. Still, getting to the $21.68 level may cause a pull-back move approaching $22 mark.
On December 02, 2019, ON Semiconductor Corporation (NASDAQ:ON) shares lost -0.51% or -0.11 points to close at $21.36 with a thin trading volume of 2.908 million shares. It opened the trading session at $21.64, the shares rose to $21.74 and dropped to $21.165, the range by which the price of stock traded the whole day. The company now has a market cap of $9 billion and currently has 421.24 million outstanding shares. ON Semiconductor Corporation (ON) stock has accumulated 4.71 percent of market value in 21 trading days.
ON stock’s trailing 3-year beta is 2.19, meaning there will be a greater rate of return, although posing a higher risk. The part of a firm’s profit given to each outstanding share of regular stock was $0.65 share in the trailing 52 weeks. The stock’s value surged 29.38 percent year to date (YTD) compared to a rise of 15.46 percent in 52 week’s period. The firm’s shares are still trading -9.26 percent below its 1-year high of $23.54 and 41.83 percent up from 52-week low of $15.06. The average consensus ranking on the company is 2.2, on a ranging where 5 is equal to a consensus sell rating. In other words, the mean analyst recommendations are ranking this stock as a sell.
ON Semiconductor Corporation (ON) shares are trading at a P/E ratio of 28.1 times earnings posted in the trailing 12 months. The industry ON deals with has an average P/E of 23.4. Its P/B ratio is standing at 2.7X compared to the 4.5 industry average. It is additionally sporting a 1.6 on the Price-to-Sales ratio, compared to the industry’s P/S average of 4.7. ON Semiconductor Corporation has a 36.6% gross profit margin, with its operating margin around 9.1%. Alongside this, the company’s net profit margin currently stands at 5.7%.
Past records have indicated that shares in ON Semiconductor Corporation declined on 4 different earnings reaction days and we have yet to see whether this trend will play out and remain in place when the company reports upcoming earnings.