onsemi (NASDAQ:ON) Stock Price Down 8.6% – Should You Sell?

Shares of onsemi (NASDAQ:ON) dropped 8.6% on Tuesday . The stock traded as low as $119.12 and last traded at $120.1920. Approximately 1,936,974 shares were traded during trading, a decline of 81% from the average daily volume of 10,213,648 shares. The stock had previously closed at $131.55.

onsemi News Roundup

Here are the key news stories impacting onsemi this week:

• Positive Sentiment: Wells Fargo raised its price target on onsemi and kept an Overweight rating, citing strength in “physical AI” and continued demand tied to semiconductor growth themes.
• Positive Sentiment: The broader chip sector remains supportive after the Philadelphia Semiconductor Index hit a fresh record, which is helping keep attention on onsemi and other semiconductor names.
• Neutral Sentiment: Recent articles say onsemi is attracting investor attention, but do not point to any new company-specific operational update, acquisition, or guidance change to explain the move.
• Neutral Sentiment: The company’s last earnings report was solid, with EPS and revenue both beating estimates and Q2 guidance already raised, so investors may now be focusing on valuation and near-term profit-taking rather than fundamentals.

Wall Street Analyst Weigh In

ON has been the topic of several recent analyst reports. Barclays upped their price objective on shares of onsemi from $75.00 to $100.00 and gave the stock an “equal weight” rating in a report on Wednesday, May 6th. Morgan Stanley boosted their target price on onsemi from $85.00 to $87.00 and gave the company an “equal weight” rating in a research report on Tuesday, May 5th. Evercore restated an “outperform” rating on shares of onsemi in a research note on Tuesday, May 5th. Needham & Company LLC raised their price target on onsemi from $72.00 to $110.00 and gave the stock a “buy” rating in a research report on Tuesday, May 5th. Finally, Truist Financial reaffirmed a “hold” rating and issued a $101.00 price objective (up from $66.00) on shares of onsemi in a research note on Tuesday, May 5th. One investment analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating, fourteen have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $94.68.

onsemi Stock Down 9.7%

The company has a quick ratio of 3.14, a current ratio of 4.87 and a debt-to-equity ratio of 0.41. The stock has a market cap of $46.53 billion, a price-to-earnings ratio of 84.12, a PEG ratio of 1.08 and a beta of 1.97. The business’s fifty day moving average is $107.52 and its two-hundred day moving average is $77.45.

onsemi (NASDAQ:ON) last issued its quarterly earnings results on Monday, May 4th. The semiconductor company reported $0.64 EPS for the quarter, beating the consensus estimate of $0.61 by $0.03. The company had revenue of $1.51 billion during the quarter, compared to analysts’ expectations of $1.49 billion. onsemi had a net margin of 9.46% and a return on equity of 12.79%. The firm’s revenue was up 4.7% compared to the same quarter last year. During the same quarter last year, the company posted $0.55 EPS. onsemi has set its Q2 2026 guidance at 0.650-0.770 EPS. Equities analysts forecast that onsemi will post 3.09 earnings per share for the current fiscal year.

Insider Activity

In other news, CFO Trent Thad sold 30,000 shares of onsemi stock in a transaction dated Thursday, April 23rd. The stock was sold at an average price of $93.00, for a total value of $2,790,000.00. Following the completion of the transaction, the chief financial officer owned 301,194 shares in the company, valued at approximately $28,011,042. This trade represents a 9.06% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 0.35% of the company’s stock.

Institutional Trading of onsemi

Hedge funds have recently added to or reduced their stakes in the company. Norges Bank purchased a new position in onsemi in the fourth quarter worth approximately $330,885,000. Two Sigma Investments LP increased its position in shares of onsemi by 636.1% in the 3rd quarter. Two Sigma Investments LP now owns 3,749,751 shares of the semiconductor company’s stock valued at $184,900,000 after purchasing an additional 3,240,375 shares during the last quarter. Rafferty Asset Management LLC raised its holdings in shares of onsemi by 55.0% in the 2nd quarter. Rafferty Asset Management LLC now owns 5,837,502 shares of the semiconductor company’s stock valued at $305,943,000 after purchasing an additional 2,072,125 shares in the last quarter. Marshall Wace LLP raised its holdings in shares of onsemi by 23,784.8% in the 4th quarter. Marshall Wace LLP now owns 1,716,122 shares of the semiconductor company’s stock valued at $92,928,000 after purchasing an additional 1,708,937 shares in the last quarter. Finally, Alliancebernstein L.P. lifted its position in shares of onsemi by 312.8% during the 2nd quarter. Alliancebernstein L.P. now owns 2,011,077 shares of the semiconductor company’s stock worth $105,401,000 after purchasing an additional 1,523,866 shares during the last quarter. Institutional investors and hedge funds own 97.70% of the company’s stock.

About onsemi

onsemi is engaged in disruptive innovations and also a supplier of power and analog semiconductors. The firm offers vehicle electrification and safety, sustainable energy grids, industrial automation, and 5G and cloud infrastructure, with a focus on automotive and industrial end-markets. It operates through the following segments: Power Solutions Group, Advanced Solutions Group, and Intelligent Sensing Group. The Power Solutions Group segment offers discrete, module, and semiconductor products that perform multiple application functions, including power switching, power conversion, signal conditioning, circuit protection, signal amplification, and voltage reference functions.