ON Semiconductor’s (ON) “Buy” Rating Reiterated at Needham & Company LLC
Needham & Company LLC reissued their buy rating on shares of ON Semiconductor (NASDAQ:ON) in a research note published on Monday. They currently have a $27.00 target price on the semiconductor company’s stock.
“At its 2019 Analyst Day, we believe ON effectively outlined its long-term strategy to address the biggest secular trends in the semiconductor industry: ADAS, electrification, machine vision and robotics and 5G infrastructure. We are particularly encouraged by the company’s momentum in 5G infrastructure and server power management, which represent upside drivers to the model. ON also introduced an impressive 2022 target that called for revenue of $7.1BN and EPS of $3.00 (vs. our 2019 ests. of $5.9BN/$1.95). Importantly, in just three years, management expects 72% of its business will be exposed to auto, industrial, and cloud power (vs. 65% today) and cloud power to double from current levels. Moreover, we believe ON is undergoing a favorable mix shift to higher margin, higher valued-added products with longer design cycles, better pricing models, and stronger supplier dynamics (i.e.”,” Needham & Company LLC’s analyst wrote.
ON has been the subject of a number of other reports. BidaskClub raised shares of ON Semiconductor from a strong sell rating to a sell rating in a report on Saturday, January 12th. ValuEngine raised shares of ON Semiconductor from a sell rating to a hold rating in a report on Tuesday, December 18th. BMO Capital Markets raised shares of ON Semiconductor from a market perform rating to an outperform rating and upped their target price for the company from $20.00 to $30.00 in a report on Monday, March 4th. Robert W. Baird reaffirmed a buy rating and set a $28.00 target price on shares of ON Semiconductor in a report on Wednesday, January 9th. Finally, Zacks Investment Research raised shares of ON Semiconductor from a sell rating to a hold rating in a report on Monday, January 21st. One investment analyst has rated the stock with a sell rating, seven have given a hold rating and eight have given a buy rating to the stock. The company presently has an average rating of Hold and a consensus target price of $24.73.
ON Semiconductor declared that its Board of Directors has authorized a share buyback program on Thursday, November 15th that authorizes the company to buyback $1.50 billion in shares. This buyback authorization authorizes the semiconductor company to buy up to 20.5% of its stock through open market purchases. Stock buyback programs are usually an indication that the company’s board believes its shares are undervalued.
In related news, Director Emmanuel T. Hernandez sold 30,000 shares of the company’s stock in a transaction on Friday, January 25th. The shares were sold at an average price of $20.01, for a total transaction of $600,300.00. Following the completion of the transaction, the director now owns 159,655 shares in the company, valued at $3,194,696.55. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Emmanuel T. Hernandez sold 10,000 shares of the company’s stock in a transaction on Monday, February 11th. The stock was sold at an average price of $22.05, for a total transaction of $220,500.00. Following the transaction, the director now owns 139,655 shares of the company’s stock, valued at approximately $3,079,392.75. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 60,000 shares of company stock valued at $1,266,000. 1.29% of the stock is owned by company insiders.
A number of hedge funds have recently added to or reduced their stakes in the business. Great West Life Assurance Co. Can lifted its position in ON Semiconductor by 0.5% during the fourth quarter. Great West Life Assurance Co. Can now owns 116,355 shares of the semiconductor company’s stock valued at $1,830,000 after purchasing an additional 613 shares during the last quarter. Huntington National Bank lifted its position in ON Semiconductor by 69.2% during the fourth quarter. Huntington National Bank now owns 1,926 shares of the semiconductor company’s stock valued at $32,000 after purchasing an additional 788 shares during the last quarter. M&T Bank Corp lifted its position in ON Semiconductor by 5.0% during the fourth quarter. M&T Bank Corp now owns 17,833 shares of the semiconductor company’s stock valued at $295,000 after purchasing an additional 843 shares during the last quarter. ETF Managers Group LLC lifted its position in ON Semiconductor by 18.8% during the fourth quarter. ETF Managers Group LLC now owns 5,417 shares of the semiconductor company’s stock valued at $89,000 after purchasing an additional 856 shares during the last quarter. Finally, Janney Montgomery Scott LLC lifted its position in ON Semiconductor by 2.6% during the fourth quarter. Janney Montgomery Scott LLC now owns 35,532 shares of the semiconductor company’s stock valued at $587,000 after purchasing an additional 894 shares during the last quarter. Institutional investors and hedge funds own 91.81% of the company’s stock.
About ON Semiconductor
ON Semiconductor Corporation manufactures and sells semiconductor components for various electronic devices worldwide. The company operates in three segments: Power Solutions Group, Analog Solutions Group, and Intelligent Sensing Group. The Power Solutions Group segment offers discrete, module, and integrated semiconductor products for various applications, such as power switching and conversion, signal conditioning, circuit protection, signal amplification, and voltage reference.
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