Onsemi Earnings Report: Q3 Results Exceed Expectations

Onsemi (NASDAQ:ON - Get Free Report) shared its earnings results this past Monday. The semiconductor company achieved an earnings per share (EPS) of $0.99 for the quarter, surpassing the analysts' consensus expectation of $0.97 by $0.02, as reported by Briefing.com. The company generated revenues totaling $1.76 billion during this quarter, which also exceeded the anticipated $1.75 billion. Onsemi reported a net margin of 24.84% and a return on equity of 25.48%. However, it is worth noting that the revenue for this quarter was down 19.2% compared to the same quarter of the previous year, when the company reported an EPS of $1.39.

Onsemi Price Performance

On Tuesday, share prices of Onsemi saw a slight decline of $0.42, bringing the stock price to $71.82. The trading volume reached 717,064 shares, compared to its average trading volume of 6,742,618 shares. At present, the company holds a quick ratio of 1.95, a current ratio of 3.01, and a debt-to-equity ratio of 0.31. The stock has a moving average of $71.52 for the past 50 days and $71.42 for the last 200 days. Over the past year, Onsemi's stock has hit a low of $59.34 and a high of $86.77. Currently, the firm's market capitalization stands at $30.76 billion, with a PE ratio of 17.93 and a beta of 1.65.

Insider Activity

Recently, insider trading activity was observed at Onsemi. Simon Keeton, an insider, sold 30,939 shares on Wednesday, July 31st, for an average price of $77.94, totaling approximately $2,411,385.66. After this transaction, Keeton now owns 231,092 shares, valued at around $18,011,310.48. This sale represented no change in the percentage of ownership. Additionally, CEO Hassane El-Khoury sold 1,500 shares on Monday, September 16th, at an average price of $70.80, resulting in a total value of $106,200. Following this sale, the CEO's ownership amounted to 840,620 shares, worth approximately $59,515,896. In the last quarter, insiders sold a total of 33,939 shares for a value of $2,626,651. Corporate insiders currently own 0.31% of Onsemi's stock.

Analyst Upgrades and Downgrades

Onsemi has recently been reviewed by several analysts. Deutsche Bank raised its target price for Onsemi shares from $85.00 to $90.00, while assigning a "buy" rating in a report dated Tuesday, July 30th. Similarly, JPMorgan Chase & Co. increased its target price from $85.00 to $88.00, giving a "neutral" rating. However, Citigroup downgraded Onsemi from a "buy" to a "neutral" rating, lowering its target price from $85.00 to $77.00. Needham & Company LLC also decreased its price target from $92.00 to $87.00, maintaining a "buy" rating. Lastly, BNP Paribas dropped its price target from $60.00 to $55.00. In summary, three analysts rated the stock as a sell, seven as hold, and fifteen as buy. Currently, Onsemi holds an average rating of "Hold" and an average target price of $85.91 according to MarketBeat.com.

About Onsemi

Onsemi is known for its advancements in disruptive innovations and serves as a supplier of power and analog semiconductors. The company focuses on vehicle electrification, safety, sustainable energy grids, industrial automation, and 5G/cloud infrastructure, primarily targeting automotive and industrial markets. Onsemi operates through multiple segments, including Power Solutions Group, Advanced Solutions Group, and Intelligent Sensing Group.

Investment Considerations

For potential investors, it is essential to evaluate market insights and expert analyses. Currently, Onsemi is receiving a "Moderate Buy" rating from analysts, but some top-rated analysts recommend five alternative stocks as more favorable buying opportunities. In addition, as energy demand continues to rise, investors may want to examine the role of energy stocks in their investment portfolios.

Onsemi, Earnings, Stocks