ON Semiconductor Corporation (NASDAQ: ON) stock fell -3.33% on Wednesday to $79.79 against a previous-day closing price of $82.54. With 8.59 million shares changed hands, the volume of the stock remained heavier than its average volume of 6.79 million shares. During the session, the Semiconductors company that operates in wider Technology sector, reached to the highest price of $80.86 whereas the lowest price it dropped to was $78.37. The 52-week range on ON shows that it touched its highest point at $87.55 and its lowest point at $44.76 during that stretch. It currently has a 1-year price target of $95.58. Beta for the stock currently stands at 1.71.
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Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of ON was down-trending over the past week, with a drop of -6.82%, but this was up by 13.42% over a month. Three-month performance surged to 1.79% while six-month performance rose 12.14%. The stock gained 42.76% in the past year, while it has gained 27.93% so far this year. A look at the trailing 12-month EPS for ON yields 4.10 with Next year EPS estimates of 5.40. For the next quarter, that number is 1.21. This implies an EPS growth rate of 86.80% for this year and 11.71% for next year. EPS is expected to grow by 6.27% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 38.20%.
Float and Shares Shorts:
At present, 431.90 million ON shares are outstanding with a float of 430.73 million shares on hand for trading. On May 14, 2023, short shares totaled 24.9 million, which was 5.77% higher than short shares on Apr 13, 2023. In addition to Mr. Hassane S. El-Khoury as the firm’s Pres, CEO & Director, Mr. Thad Trent serves as its Exec. VP, CFO & Treasurer.
Through their ownership of 102.19% of ON’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 69.04% of ON, in contrast to 34.06% held by mutual funds. Shares owned by individuals account for 2.49%. As the largest shareholder in ON with 12.34% of the stake, Fidelity Management & Research Co holds 53,317,233 shares worth 53,317,233. A second-largest stockholder of ON, The Vanguard Group, Inc., holds 48,413,097 shares, controlling over 11.21% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in ON, holding 26,946,350 shares or 6.24% stake. With a 3.11% stake in ON, the Vanguard Total Stock Market ETF is the largest stakeholder. A total of 13,420,268 shares are owned by the mutual fund manager. The Vanguard 500 Index Fund, which owns about 2.35% of ON stock, is the second-largest Mutual Fund holder. It holds 10,138,877 shares valued at 729.59 million. Janus Henderson Enterprise Fund holds 2.34% of the stake in ON, owning 10,126,024 shares worth 728.67 million.
An Overview of Recent Financials:
Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Mar 30, 2023, ON reported revenue of $2.08B and operating income of $697.30M. The EBITDA in the recently reported quarter was $844.20M and diluted EPS was $1.02.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for ON since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With ON analysts setting a high price target of $110.00 and a low target of $80.00, the average target price over the next 12 months is $95.08. Based on these targets, ON could surge 37.86% to reach the target high and rise by 0.26% to reach the target low. Reaching the average price target will result in a growth of 19.16% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.
Summary of Insider Activity:
Insiders traded ON stock several times over the past three months with 1 Buys and 6 Sells. In these transactions, 91,996 shares were bought while 53,867 shares were sold. The number of buy transactions has increased to 34 while that of sell transactions has risen to 51 over the past year. The total number of shares bought during that period was 980,621 while 385,005 shares were sold.