why ON Semiconductor Corporation [ON] is a Good Choice for Investors After New Price Target of $73.73

ON Semiconductor Corporation [NASDAQ: ON] stock went on a downward path that fall over -2.56% on Tuesday, amounting to a one-week price decrease of less than -1.39%. The company report on December 1, 2022 that onsemi Divests Niigata, Japan Fab.


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Company continues to execute on its fab-liter strategy; closed sale of Japan fab.

onsemi (Nasdaq: ON), a leader in intelligent power and sensing technologies, today announced the completion of the sale of its Niigata, Japan facility to JS Foundry K.K. The divestiture aligns with onsemi’s fab-liter strategy to expand gross margin and improve predictably of its financial results by reducing fixed cost footprint.

Over the last 12 months, ON stock rose by 12.63%. The one-year ON Semiconductor Corporation stock forecast points to a potential upside of 5.41. The average equity rating for ON stock is currently 2.10, trading closer to a bullish pattern in the stock market.

The market cap for the stock reached $30.55 billion, with 432.90 million shares outstanding and 430.73 million shares in the current float. Compared to the average trading volume of 6.87M shares, ON stock reached a trading volume of 4905354 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Guru’s Opinion on 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 $73.73 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.

Credit Suisse have made an estimate for ON Semiconductor Corporation shares, keeping their opinion on the stock as Neutral, with their previous recommendation back on November 16, 2022. While these analysts kept the previous recommendation, William Blair raised their target price to Outperform. The new note on the price target was released on October 17, 2022, representing the official price target for ON Semiconductor Corporation stock. On May 12, 2022, analysts increased their price target for ON shares from 58 to 65.

The Average True Range (ATR) for ON Semiconductor Corporation is set at 3.34, with the Price to Sales ratio for ON stock in the period of the last 12 months amounting to 3.79. The Price to Book ratio for the last quarter was 5.34, with the Price to Cash per share for the same quarter was set at 5.59. Price to Free Cash Flow for ON in the course of the last twelve months was 18.01 with Quick ratio for the last quarter at 2.10.

ON Stock Performance Analysis:

ON Semiconductor Corporation [ON] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -1.39. With this latest performance, ON shares gained by 10.37% in over the last four-week period, additionally plugging by 6.51% over the last 6 months – not to mention a rise of 12.63% 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 49.23, with the RSI for the last a single of trading hit 45.08, and the three-weeks RSI is set at 50.77 for ON Semiconductor Corporation [ON]. The present Moving Average for the last 50 days of trading for this stock 66.80, while it was recorded at 72.71 for the last single week of trading, and 61.76 for the last 200 days.

Insight into ON Semiconductor Corporation Fundamentals:

Operating Margin for any stock indicates how profitable investing would be, and ON Semiconductor Corporation [ON] shares currently have an operating margin of +20.38 and a Gross Margin at +38.80. ON Semiconductor Corporation’s Net Margin is presently recorded at +14.98.

Return on Equity for this stock inclined to 24.86, with Return on Assets sitting at 11.04.

ON Semiconductor Corporation’s liquidity data is similarly interesting compelling, with a Quick Ratio of 2.10 and a Current Ratio set at 3.00.

ON Stock EPS

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 18.33%.

ON Semiconductor Corporation [ON] Insider Position Details

There are presently around $29,745 million, in the hands of institutional investors. The top three institutional holders of ON stocks are: VANGUARD GROUP INC with ownership of 49,912,255, which is approximately -0.851% of the company’s market cap and around 0.10% of the total institutional ownership; FMR LLC, holding 45,616,239 shares of the stock with an approximate value of $3.18 billion in ON stocks shares; and BLACKROCK INC., currently with $3.0 billion in ON stock with ownership of nearly -4.749% of the company’s market capitalization.

Positions in ON Semiconductor Corporation stocks held by institutional investors increased at the end of October and at the time of the October reporting period, where 386 institutional holders increased their position in ON Semiconductor Corporation [NASDAQ:ON] by around 52,329,905 shares. Additionally, 341 investors decreased positions by around 72,968,661 shares, while 85 investors held positions by with 301,215,914 shares. The mentioned changes placed institutional holdings at 426,514,480 shares, according to the latest SEC report filing. ON stock had 126 new institutional investments in for a total of 9,751,240 shares, while 67 institutional investors sold positions of 3,643,414 shares during the same period.

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