ON Semiconductor Corporation [NASDAQ: ON] price plunged by -2.69 percent to reach at -$2.11. The company report on February 24, 2023 that onsemi Announces Upsize and Pricing of Private Offering of $1.3 Billion of 0.50% Convertible Senior Notes.
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ON Semiconductor Corporation (Nasdaq: ON) (“onsemi”) announced today the pricing of its private offering of $1.3 billion aggregate principal amount of 0.50% Convertible Senior Notes due 2029 (the “notes”) at a 32.5% premium to the closing price of onsemi’s common stock on February 23, 2023, of $78.39. 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”). onsemi 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 $200 million aggregate principal amount of the notes. The aggregate principal amount of the offering was increased from the previously announced offering size of $1.1 billion (or $1.265 billion if the initial purchasers exercise their option to purchase additional notes in full). The offering of the notes and the convertible hedge and warrant transactions described below are expected to close on February 28, 2023, subject to customary closing conditions.
onsemi expects the net proceeds from the offering of the notes to be approximately $1,270 million ($1,466 million if the initial purchasers exercise their option to purchase the additional notes in full) after deducting the initial purchasers’ discounts and after deducting offering expenses payable by onsemi. onsemi intends to use the net proceeds from the offering, together with cash on hand, (i) to repay up to $1,086.0 million of the existing outstanding indebtedness under onsemi’s Term Loan “B” Facility, which accrues interest at a floating rate tied to the Secured Overnight Financing Rate (“SOFR”), which interest rate was equal to 6.42% as of December 31, 2022, and related transaction fees and expenses, if any, (ii) to pay the approximately $148.6 million cost of the convertible note hedge transactions described below (after such cost is partially offset by the proceeds to onsemi from the sale of the warrant transactions described below), and (iii) with respect to the remainder of the net proceeds, if any, for general corporate purposes. If the initial purchasers exercise their option to purchase additional notes, onsemi expects to enter into additional convertible note hedge transactions and warrant transactions, and intends to use cash on hand, a portion of the net proceeds from the sale of any such additional notes or a combination thereof, to pay the costs of such additional convertible note hedge transactions (which would be partially offset by the proceeds to onsemi from the sale of additional warrant transactions).
A sum of 16697003 shares traded at recent session while its average daily volume was at 6.37M shares. ON Semiconductor Corporation shares reached a high of $77.12 and dropped to a low of $75.52 until finishing in the latest session at $76.28.
The one-year ON stock forecast points to a potential upside of 15.47. The average equity rating for ON stock is currently 2.10, trading closer to a bullish pattern in the stock market.
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 $90.24 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.
Summit Insights have made an estimate for ON Semiconductor Corporation shares, keeping their opinion on the stock as Buy, with their previous recommendation back on February 06, 2023. The new note on the price target was released on January 10, 2023, representing the official price target for ON Semiconductor Corporation stock. Previously, the target price had yet another raise to $83, while Credit Suisse analysts kept a Neutral rating on ON stock.
The Average True Range (ATR) for ON Semiconductor Corporation is set at 3.15, with the Price to Sales ratio for ON stock in the period of the last 12 months amounting to 4.07. The Price to Book ratio for the last quarter was 5.33, with the Price to Cash per share for the same quarter was set at 6.58. Price to Free Cash Flow for ON in the course of the last twelve months was 20.80 with Quick ratio for the last quarter at 2.00.
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 -9.33. With this latest performance, ON shares gained by 6.22% in over the last four-week period, additionally plugging by 5.90% over the last 6 months – not to mention a rise of 32.09% 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 46.70, with the RSI for the last a single of trading hit 37.59, and the three-weeks RSI is set at 50.68 for ON Semiconductor Corporation [ON]. The present Moving Average for the last 50 days of trading for this stock 71.29, while it was recorded at 78.87 for the last single week of trading, and 65.47 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 +33.36 and a Gross Margin at +47.99. ON Semiconductor Corporation’s Net Margin is presently recorded at +22.85.
Return on Equity for this stock inclined to 35.31, with Return on Assets sitting at 17.61.
ON Semiconductor Corporation’s liquidity data is similarly interesting compelling, with a Quick Ratio of 2.00 and a Current Ratio set at 2.80.
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 17.47%.
ON Semiconductor Corporation [ON] Insider Position Details
There are presently around $32,688 million, in the hands of institutional investors. The top three institutional holders of ON stocks are: FMR LLC with ownership of 50,792,399, which is approximately 11.347% of the company’s market cap and around 0.10% of the total institutional ownership; VANGUARD GROUP INC, holding 49,935,983 shares of the stock with an approximate value of $3.81 billion in ON stocks shares; and BLACKROCK INC., currently with $3.3 billion in ON stock with ownership of nearly 0.444% of the company’s market capitalization.
Positions in ON Semiconductor Corporation stocks held by institutional investors increased at the end of Monday and at the time of the Monday reporting period, where 446 institutional holders increased their position in ON Semiconductor Corporation [NASDAQ:ON] by around 35,074,963 shares. Additionally, 349 investors decreased positions by around 33,855,372 shares, while 91 investors held positions by with 359,602,158 shares. The mentioned changes placed institutional holdings at 428,532,493 shares, according to the latest SEC report filing. ON stock had 148 new institutional investments in for a total of 7,594,980 shares, while 72 institutional investors sold positions of 2,631,826 shares during the same period.