ON Semiconductor Corporation (NASDAQ:ON) sank as low as $21.815 Monday before getting settled at $22.24. The 1.83 percent increase called for market cap to move at $9.54B. The price went up as high as $21.815 before retreating. Trading activity significantly weakened as the volume at ready counter decreased to 7,188,152 shares versus 8,063,875 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 8,128,132 shares. The stock is now 52.85% above against its bear-market low of $14.55 on October 26, 2018. It has retreated -21.85% since it’s 52-week high of $27.1 reached in March. Now the market price is up 6.87% on the year and up 34.71% YTD.
ON’s 50 day simple moving average (SMA 50) price is $18.29 and its 200-day simple moving average (SMA 200) price is $20.4. The company’s stock currently has a total float of 415.56M shares. Its weekly volatility is hovering around 3.48% and felt 4.07% volatility in price over a month. On the upside, the share price will test short term resistance at around $22.43. On a downside, the stock is likely to find some support, which begins at $21.93. The failure to get near-term support could push it to $21.63.
Separately, it has been reported that multiple insider activity took place at ON Semiconductor Corporation (ON). Director Hernandez Emmanuel T sold 10,000 shares for $149,655 in transaction occurred on 2019/02/05. After making this transaction, the Director owns a direct stake of 220,000 shares, worth $3,328,327, as per the last closing price. On 2019/01/25 Hernandez Emmanuel T, Director at ON, dumped 30,000 shares at an average price of $20.01 per share. The selling total is valued at $3,550,727.
Director, Delfassy Gilles had divested 2,000 shares for $37,869 through a trade on 2018/12/14. Following this activity, the insider holds 34,200 shares worth $842,207 as of recent close. Wall Street’s most bullish ON Semiconductor Corporation (NASDAQ:ON) analysts are predicting the share price to blow past $28 per share during the next 12 months. The current median share price forecast by them is $25, suggesting that the stock could increase 12.41% in that time frame. The average price target of $23.66 calls for a nearly 6.38% increase in the stock price.
It had seen a change in price target from analysts at Craig Hallum, who reiterated the stock at Buy on October 30 but moved PT from $31 to $25. Analysts at KeyBanc Capital Mkts, started covering the stock on September 25 with a Sector Weight rating. The stock lost favor of Raymond James analysts who expressed their lack of confidence in it using a downgrade from Outperform to Mkt Perform on September 25. Morgan Stanley analysts came out with bearish views on August 09 when the call was made. They think the stock is now Underweight compared to to their prior call for Equal-Weight.
When looking at valuations, ON Semiconductor Corporation (ON) has a cheap P/E of 14.58x as compared to industry average of 4113.29x. Moreover, it trades for 10.67 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 2.98x price/book and 1.62x price/sales. Compared to others, ON Semiconductor Corporation is in a different league with regards to profitability, having net margins of 15.9%. To put some perspective around this, the industry’s average net margin is 20.11%. ON’s ROE is 31.2%, which is also considerably better than the industry’s ROE of 10.06%. It’s also very liquid in the near term, with a current ratio of 2.4. The stock has a debt/capital of 0.85.
ON last reported earnings on February 01, 2019 when it released Dec-18 results that exceeded expectations. The company raked in $0.53 per share, -95.51% change on the same period last year. That was better than consensus for $0.47. Revenue for the recent quarter stood at $1.5 billion, up 9% on last year and below the $1.5 billion predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $1.37 billion to $1.41 billion, which should be compared with $1.4 billion generated last year. EPS is seen in a range of $0.3 to $0.42, against the $0.42 reported a year ago.