Key Points
- Insider sale: onsemi director Sudhir Gopalswamy sold 15,578 shares for approximately $1.25 million, reducing his ownership by 8.97%. The transaction occurred under a pre-arranged Rule 10b5-1 plan.
- Business performance: onsemi reported quarterly EPS of $0.74, beating estimates by $0.02, while revenue rose 9.2% year over year to $1.60 billion. The company guided for third-quarter 2026 EPS of $0.81–$0.93.
- Improved deal outlook: The revised all-cash Synaptics acquisition is valued at approximately $5.7 billion and is expected to be immediately accretive to onsemi’s non-GAAP EPS. Analysts responded positively, including Wells Fargo, which raised its price target to $100 and maintained an Overweight rating.
onsemi (NASDAQ:ON - Get Free Report) insider Sudhir Gopalswamy sold 15,578 shares of the company's stock in a transaction on Thursday, October 1st. The shares were sold at an average price of $80.00, for a total value of $1,246,240.00. Following the transaction, the insider directly owned 158,177 shares in the company, valued at approximately $12,654,160. The trade was a 8.97% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
onsemi Price Performance
NASDAQ ON opened at $84.89 on Friday. onsemi has a one year low of $44.56 and a one year high of $134.92. The stock has a 50-day moving average of $76.40 and a 200 day moving average of $88.41. The company has a debt-to-equity ratio of 0.51, a quick ratio of 2.49 and a current ratio of 3.46. The company has a market capitalization of $33.05 billion, a price-to-earnings ratio of 54.42, a PEG ratio of 0.66 and a beta of 2.05.
onsemi (NASDAQ:ON - Get Free Report) last posted its earnings results on Monday, August 3rd. The semiconductor company reported $0.74 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.72 by $0.02. The business had revenue of $1.60 billion for the quarter, compared to analysts' expectations of $1.59 billion. onsemi had a net margin of 10.17% and a return on equity of 14.06%. The business's revenue for the quarter was up 9.2% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.53 EPS. onsemi has set its Q3 2026 guidance at 0.810-0.930 EPS. On average, sell-side analysts forecast that onsemi will post 3.2 EPS for the current year.
Institutional Trading of onsemi
A number of hedge funds and other institutional investors have recently added to or reduced their stakes in ON. Janus Henderson Group PLC raised its stake in onsemi by 10.9% during the 1st quarter. Janus Henderson Group PLC now owns 13,700,884 shares of the semiconductor company's stock worth $848,392,000 after acquiring an additional 1,345,894 shares during the period. Van ECK Associates Corp lifted its stake in shares of onsemi by 16.6% during the 2nd quarter. Van ECK Associates Corp now owns 5,143,343 shares of the semiconductor company's stock valued at $486,252,000 after buying an additional 731,540 shares in the last quarter. Pictet Asset Management Holding SA boosted its holdings in onsemi by 15.5% in the 1st quarter. Pictet Asset Management Holding SA now owns 4,597,886 shares of the semiconductor company's stock worth $284,495,000 after buying an additional 615,905 shares during the period. Dimensional Fund Advisors LP boosted its holdings in onsemi by 6.4% in the 1st quarter. Dimensional Fund Advisors LP now owns 3,442,177 shares of the semiconductor company's stock worth $212,997,000 after buying an additional 207,587 shares during the period. Finally, Assenagon Asset Management S.A. increased its stake in onsemi by 74.8% in the 2nd quarter. Assenagon Asset Management S.A. now owns 2,807,808 shares of the semiconductor company's stock worth $265,450,000 after buying an additional 1,201,534 shares in the last quarter. 97.70% of the stock is owned by hedge funds and other institutional investors.
onsemi News Summary
Here are the key news stories impacting onsemi this week:
- Positive Sentiment: More favorable Synaptics deal terms: onsemi and Synaptics amended their merger agreement after Synaptics received an unsolicited competing proposal. The transaction is now an all-cash offer of $123 per Synaptics share, valuing the deal at approximately $5.7 billion versus roughly $7 billion under the previous all-stock structure. The lower purchase price removes expected share dilution and is projected to be immediately accretive to onsemi’s non-GAAP earnings per share. onsemi and Synaptics Announce Revised Merger Agreement
- Positive Sentiment: Analysts raised valuation expectations: Bank of America said the revised transaction could produce a larger earnings benefit than initially expected, while UBS characterized the deal as immediately accretive. Wells Fargo raised its onsemi price target to $100 from $85 and assigned an Overweight rating; Needham reaffirmed a Buy rating with a $116 target. ON Semiconductor's revised Synaptics deal improves earnings outlook, says BofA
- Positive Sentiment: Positive trading signals: Call-option activity was unusually strong, with traders purchasing 28,912 calls—about 36% above average volume—suggesting increased bullish positioning. The stock also benefited from broad strength in technology shares.
- Neutral Sentiment: Strategic upside remains dependent on execution: Management cited additional revenue opportunities, potential annual run-rate synergies and plans to bring some Synaptics production in-house. These benefits could improve the combined company’s growth profile, but they remain subject to deal completion and integration.
- Negative Sentiment: Insider selling adds a modest cautionary signal: Director Sudhir Gopalswamy sold 15,578 shares for approximately $1.25 million, reducing his position by 8.97%. The transaction was conducted under a pre-arranged Rule 10b5-1 trading plan, which reduces its significance as a discretionary bearish signal.
Analyst Upgrades and Downgrades
ON has been the topic of several research reports. Robert W. Baird raised their target price on shares of onsemi from $100.00 to $108.00 and gave the stock a "neutral" rating in a report on Tuesday, August 4th. Mizuho lowered their price target on onsemi from $110.00 to $95.00 and set an "outperform" rating on the stock in a report on Thursday, September 17th. Wells Fargo & Company increased their price target on onsemi from $85.00 to $100.00 and gave the company an "overweight" rating in a report on Friday. Weiss Ratings upgraded onsemi from a "sell (d+)" rating to a "hold (c)" rating in a research note on Friday, August 7th. Finally, Zacks Research cut onsemi from a "strong-buy" rating to a "hold" rating in a research report on Monday, July 6th. Fifteen equities research analysts have rated the stock with a Buy rating and fifteen have given a Hold rating to the company's stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $95.36.
Read Our Latest Analysis on onsemi
About onsemi
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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.
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