Zacks Research Downgrades onsemi (NASDAQ:ON) to Hold

onsemi (NASDAQ:ON) was downgraded by equities researchers at Zacks Research from a “strong-buy” rating to a “hold” rating in a report issued on Monday,Zacks.com reports.

Several other research analysts also recently commented on ON. Truist Financial restated a “hold” rating and set a $101.00 price objective (up from $66.00) on shares of onsemi in a report on Tuesday, May 5th. Morgan Stanley increased their price target on onsemi from $85.00 to $87.00 and gave the stock an “equal weight” rating in a research report on Tuesday, May 5th. Wall Street Zen upgraded onsemi from a “hold” rating to a “buy” rating in a report on Monday, April 13th. Barclays upped their price objective on shares of onsemi from $75.00 to $100.00 and gave the stock an “equal weight” rating in a research note on Wednesday, May 6th. Finally, TD Cowen cut shares of onsemi from a “buy” rating to a “hold” rating and set a $110.00 target price on the stock. in a report on Friday, June 26th. Thirteen analysts have rated the stock with a Buy rating, sixteen have issued a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, onsemi has an average rating of “Hold” and a consensus price target of $101.19.

onsemi Price Performance

onsemi stock opened at $91.10 on Monday. The stock has a market cap of $35.70 billion, a price-to-earnings ratio of 64.61, a price-to-earnings-growth ratio of 0.84 and a beta of 2.01. The company has a debt-to-equity ratio of 0.41, a current ratio of 4.87 and a quick ratio of 3.14. onsemi has a 1 year low of $44.56 and a 1 year high of $134.92. The firm has a 50-day moving average of $111.18 and a two-hundred day moving average of $80.83.

onsemi (NASDAQ:ON) last issued its earnings results on Monday, May 4th. The semiconductor company reported $0.64 EPS for the quarter, topping analysts’ consensus estimates of $0.61 by $0.03. onsemi had a net margin of 9.46% and a return on equity of 12.79%. The business had revenue of $1.51 billion for the quarter, compared to analyst estimates of $1.49 billion. During the same period last year, the company posted $0.55 earnings per share. The company’s quarterly revenue was up 4.7% compared to the same quarter last year. onsemi has set its Q2 2026 guidance at 0.650-0.770 EPS. On average, research analysts forecast that onsemi will post 3.09 earnings per share for the current year.

Insider Activity at onsemi

In related news, CFO Trent Thad sold 30,000 shares of the company’s stock in a transaction on Thursday, April 23rd. The stock was sold at an average price of $93.00, for a total transaction of $2,790,000.00. Following the completion of the sale, the chief financial officer directly owned 301,194 shares in the company, valued at $28,011,042. This represents a 9.06% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 0.35% of the company’s stock.

Institutional Trading of onsemi

Several hedge funds have recently modified their holdings of ON. Redwood Investment Management LLC bought a new position in shares of onsemi during the 1st quarter worth approximately $1,083,000. Pacer Advisors Inc. grew its holdings in onsemi by 5.9% in the first quarter. Pacer Advisors Inc. now owns 1,544,424 shares of the semiconductor company’s stock worth $95,631,000 after purchasing an additional 85,433 shares during the last quarter. Janus Henderson Group PLC increased its position in shares of onsemi by 10.9% during the first quarter. Janus Henderson Group PLC now owns 13,700,884 shares of the semiconductor company’s stock worth $848,392,000 after purchasing an additional 1,345,894 shares in the last quarter. Empowered Funds LLC lifted its holdings in shares of onsemi by 814.1% during the 1st quarter. Empowered Funds LLC now owns 240,614 shares of the semiconductor company’s stock valued at $14,899,000 after purchasing an additional 214,292 shares during the last quarter. Finally, Quantinno Capital Management LP lifted its holdings in shares of onsemi by 13.3% during the 1st quarter. Quantinno Capital Management LP now owns 788,484 shares of the semiconductor company’s stock valued at $48,823,000 after purchasing an additional 92,309 shares during the last quarter. 97.70% of the stock is owned by hedge funds and other institutional investors.

Key onsemi News

Here are the key news stories impacting onsemi this week:

• Positive Sentiment: onsemi said the divestitures should improve its manufacturing cost structure and support gross margin expansion over time as it reallocates resources to higher-priority assets. Article title
• Positive Sentiment: Management is framing the changes as part of a broader Fab Right strategy, suggesting a more focused operating model rather than a growth slowdown. Article title
• Neutral Sentiment: Analyst coverage around onsemi remains generally constructive, with recent price targets still above the current share price range, but the stock appears to be reacting more to the restructuring headline than to a new earnings update.
• Negative Sentiment: The planned asset sales can also raise investor questions about execution risk, near-term disruption, and whether the company is trimming capacity in response to softer demand. Article title
• Negative Sentiment: A separate investor alert about a law-firm investigation may have added some overhang, even though it does not appear to be the primary driver of the move. Article title

onsemi Company Profile

onsemi is engaged in disruptive innovations and also a supplier of power and analog semiconductors. The firm offers vehicle electrification and safety, sustainable energy grids, industrial automation, and 5G and cloud infrastructure, with a focus on automotive and industrial end-markets. It operates through the following segments: Power Solutions Group, Advanced Solutions Group, and Intelligent Sensing Group. The Power Solutions Group segment offers discrete, module, and semiconductor products that perform multiple application functions, including power switching, power conversion, signal conditioning, circuit protection, signal amplification, and voltage reference functions.