ON Semiconductor Corporation [NASDAQ: ON] traded at a high on 05/11/21, posting a 0.41 gain after which it closed the day’ session at $37.17. The company report on May 12, 2021 that ON Semiconductor Announces Pricing of Private Offering of $700 Million of 0% Convertible Senior Notes.
ON Semiconductor Corporation (Nasdaq: ON) (“ON Semiconductor”) announced the pricing of its previously announced private offering of $700 million aggregate principal amount of 0% Convertible Senior Notes due 2027 (the “notes”) at an approximately 42.5% premium to the closing price of ON Semiconductor’s common stock on May 11, 2021 of $37.17. The notes were offered only to persons reasonably believed to be qualified institutional buyers in accordance with Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”). ON Semiconductor has granted to the initial purchasers of the notes an option to purchase, within a 13-day period beginning on, and including, the date on which the notes are first issued, up to an additional $105 million aggregate principal amount of the notes. The offering of the notes and the convertible hedge and warrant transactions described below are expected to close on May 14, 2021, subject to customary closing conditions.
The notes will be ON Semiconductor’s senior unsecured obligations and will be guaranteed by certain of its subsidiaries. The notes will not bear regular interest, and the principal amount of the notes will not accrete. The notes will mature on May 1, 2027, unless earlier repurchased, redeemed or converted. The initial conversion rate is 18.8796 shares of common stock per $1,000 principal amount of notes, which is equivalent to an initial conversion price of approximately $52.97 per share, representing a premium of approximately 42.5% over the closing stock price on May 11, 2021. ON Semiconductor will satisfy any conversion elections by paying cash up to the aggregate principal amount of the notes to be converted, and paying or delivering, as the case may be, cash, shares of common stock or a combination of cash and shares of common stock, at ON Semiconductor’s election, in respect of the remainder, if any, of its conversion obligation in excess of the aggregate principal amount of the notes to be converted.
The results of the trading session contributed to over 11404573 shares changing hands. Over the past one week, the price volatility of ON Semiconductor Corporation stands at 4.06% while the volatility over the past one month is 3.85%.
The market cap for ON stock reached $15.44 billion, with 413.40 million shares outstanding and 405.56 million shares in the current float. Compared to the average trading volume of 6.69M shares, ON reached a trading volume of 11404573 in the most recent trading day, which is why market watchdogs consider the stock to be active.
What do top market gurus say about ON Semiconductor Corporation [ON]?
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for ON shares is $43.70 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on ON stock is a recommendation set at 2.10. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
Robert W. Baird have made an estimate for ON Semiconductor Corporation shares, keeping their opinion on the stock as Outperform, with their previous recommendation back on May 04, 2021. The new note on the price target was released on March 01, 2021, representing the official price target for ON Semiconductor Corporation stock. On February 02, 2021, analysts increased their price target for ON shares from 38 to 45.
The Average True Range (ATR) for ON Semiconductor Corporation is set at 1.53, with the Price to Sales ratio for ON stock in the period of the last 12 months amounting to 2.83. The Price to Book ratio for the last quarter was 4.23, with the Price to Cash per share for the same quarter was set at 2.51. Price to Free Cash Flow for ON in the course of the last twelve months was 25.38 with Quick ratio for the last quarter at 1.10.
How has ON stock performed recently?
ON Semiconductor Corporation [ON] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -0.21. With this latest performance, ON shares dropped by -12.33% in over the last four-week period, additionally plugging by 39.84% over the last 6 months – not to mention a rise of 137.36% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for ON stock in for the last two-week period is set at 38.90, with the RSI for the last a single of trading hit 34.77, and the three-weeks RSI is set at 42.43 for ON Semiconductor Corporation [ON]. The present Moving Average for the last 50 days of trading for this stock 40.21, while it was recorded at 37.59 for the last single week of trading, and 31.42 for the last 200 days.
ON Semiconductor Corporation [ON]: Deeper insight into the fundamentals
Operating Margin for any stock indicates how profitable investing would be, and ON Semiconductor Corporation [ON] shares currently have an operating margin of +7.92 and a Gross Margin at +30.36. ON Semiconductor Corporation’s Net Margin is presently recorded at +4.46.
Return on Total Capital for ON is now 5.84, given the latest momentum, and Return on Invested Capital for the company is 3.64. Return on Equity for this stock inclined to 6.85, with Return on Assets sitting at 2.74. When it comes to the capital structure of this company, ON Semiconductor Corporation [ON] has a Total Debt to Total Equity ratio set at 102.85. Additionally, ON Total Debt to Total Capital is recorded at 50.70, with Total Debt to Total Assets ending up at 41.98. Long-Term Debt to Equity for the company is recorded at 86.91, with the Long-Term Debt to Total Capital now at 42.85.
Reflecting on the efficiency of the workforce at the company, ON Semiconductor Corporation [ON] managed to generate an average of $7,555 per employee. Receivables Turnover for the company is 7.61 with a Total Asset Turnover recorded at a value of 0.61.ON Semiconductor Corporation’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.10 and a Current Ratio set at 1.80.
Earnings analysis for ON Semiconductor Corporation [ON]
With the latest financial reports released by the company, ON Semiconductor Corporation posted 0.12/share EPS, while the average EPS was predicted by analysts to be reported at 0.02/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 500.00%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for ON. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for ON Semiconductor Corporation go to 9.95%.
Insider trade positions for ON Semiconductor Corporation [ON]
There are presently around $15,591 million, in the hands of institutional investors. The top three institutional holders of ON stocks are: FMR LLC with ownership of 40,848,324, which is approximately 1.087% of the company’s market cap and around 0.50% of the total institutional ownership; BLACKROCK INC., holding 38,136,041 shares of the stock with an approximate value of $1.42 billion in ON stocks shares; and VANGUARD GROUP INC, currently with $1.36 billion in ON stock with ownership of nearly 1.842% of the company’s market capitalization.
Positions in ON Semiconductor Corporation stocks held by institutional investors increased at the end of May and at the time of the May reporting period, where 265 institutional holders increased their position in ON Semiconductor Corporation [NASDAQ:ON] by around 81,647,304 shares. Additionally, 206 investors decreased positions by around 72,137,142 shares, while 66 investors held positions by with 265,663,947 shares. The mentioned changes placed institutional holdings at 419,448,393 shares, according to the latest SEC report filing. ON stock had 123 new institutional investments in for a total of 40,466,041 shares, while 48 institutional investors sold positions of 1,459,225 shares during the same period.