ON Semiconductor Sees Unusually Large Options Volume (NASDAQ:ON)

ON Semiconductor Corporation (NASDAQ:ON) was the target of some unusual options trading activity on Wednesday. Investors purchased 24,165 call options on the company. This is an increase of 45% compared to the average daily volume of 16,673 call options.

ON Semiconductor Trading Up 2.2%

NASDAQ ON traded up $1.02 during trading hours on Wednesday, hitting $46.58. 6,513,366 shares of the company were exchanged, compared to its average volume of 9,518,697. ON Semiconductor has a 52 week low of $31.04 and a 52 week high of $74.52. The company has a quick ratio of 3.37, a current ratio of 5.02 and a debt-to-equity ratio of 0.42. The stock has a 50-day moving average price of $49.88 and a 200 day moving average price of $50.40. The stock has a market cap of $18.74 billion, a PE ratio of 43.50, a price-to-earnings-growth ratio of 2.58 and a beta of 1.56.

ON Semiconductor (NASDAQ:ON) last announced its earnings results on Monday, November 3rd. The semiconductor company reported $0.63 EPS for the quarter, topping analysts’ consensus estimates of $0.59 by $0.04. ON Semiconductor had a return on equity of 15.33% and a net margin of 7.28%.The firm had revenue of $1.55 billion during the quarter, compared to analysts’ expectations of $1.52 billion. During the same quarter in the previous year, the business earned $0.99 EPS. The company’s quarterly revenue was down 12.0% on a year-over-year basis. ON Semiconductor has set its Q4 2025 guidance at 0.570-0.670 EPS. Analysts forecast that ON Semiconductor will post 2.6 earnings per share for the current fiscal year.

ON Semiconductor announced that its Board of Directors has authorized a stock buyback plan on Tuesday, November 18th that permits the company to repurchase $6.00 billion in outstanding shares. This repurchase authorization permits the semiconductor company to buy up to 32.7% of its shares through open market purchases. Shares repurchase plans are typically an indication that the company’s management believes its stock is undervalued.

Hedge Funds Weigh In On ON Semiconductor

Several hedge funds have recently added to or reduced their stakes in ON. Vanguard Group Inc. boosted its position in shares of ON Semiconductor by 0.5% during the second quarter. Vanguard Group Inc. now owns 51,367,704 shares of the semiconductor company’s stock valued at $2,692,181,000 after buying an additional 243,238 shares during the period. Ameriprise Financial Inc. boosted its holdings in ON Semiconductor by 7.7% during the 2nd quarter. Ameriprise Financial Inc. now owns 12,205,996 shares of the semiconductor company’s stock valued at $639,716,000 after acquiring an additional 877,533 shares during the period. Geode Capital Management LLC grew its position in ON Semiconductor by 0.7% in the 2nd quarter. Geode Capital Management LLC now owns 11,296,301 shares of the semiconductor company’s stock valued at $590,383,000 after acquiring an additional 77,795 shares during the last quarter. Allspring Global Investments Holdings LLC lifted its position in shares of ON Semiconductor by 0.9% during the third quarter. Allspring Global Investments Holdings LLC now owns 5,889,080 shares of the semiconductor company’s stock worth $284,737,000 after purchasing an additional 53,748 shares during the last quarter. Finally, Rafferty Asset Management LLC boosted its stake in shares of ON Semiconductor by 55.0% during the second quarter. Rafferty Asset Management LLC now owns 5,837,502 shares of the semiconductor company’s stock valued at $305,943,000 after purchasing an additional 2,072,125 shares during the period. 97.70% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

A number of equities analysts recently weighed in on ON shares. Williams Trading set a $60.00 target price on shares of ON Semiconductor in a research report on Tuesday, November 4th. Wells Fargo & Company dropped their price objective on shares of ON Semiconductor from $65.00 to $62.00 and set an “overweight” rating for the company in a report on Tuesday, August 5th. TD Cowen lifted their target price on ON Semiconductor from $55.00 to $60.00 and gave the stock a “buy” rating in a report on Tuesday, November 4th. Robert W. Baird boosted their target price on ON Semiconductor from $48.00 to $56.00 and gave the stock a “neutral” rating in a research report on Tuesday, November 4th. Finally, Needham & Company LLC lifted their price objective on ON Semiconductor from $50.00 to $58.00 and gave the stock a “buy” rating in a research note on Monday, August 4th. Fourteen investment analysts have rated the stock with a Buy rating, fourteen have issued a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, ON Semiconductor has an average rating of “Hold” and a consensus target price of $59.08.

About ON Semiconductor

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.