Onsemi (NASDAQ:ON) Hits New 1-Year Low - Should You Sell?

Onsemi (NASDAQ:ON) has recently reached a new 12-month low, hitting a low of $41.85 before making its last trade at $42.86. This decline represents a significant drop from its previous close of $44.16, with trading volume reflecting 9,005,844 shares exchanged on that day.

Wall Street Analysts Forecast Growth

In response to the stock's performance, several analysts have revised their outlooks on Onsemi. JPMorgan Chase & Co. decreased their price target from $88.00 to $60.00, assigning a "neutral" rating to the stock in a recent report. KeyCorp also lowered their target from $90.00 to $70.00 but maintained an "overweight" rating, while Roth Capital pegged their price target at $60.00. Additionally, Benchmark cut their price estimate from $90.00 to $60.00 and maintained a "buy" rating. Truist Financial recently reduced their price objective from $60.00 to $52.00, setting a "hold" rating. Overall, the consensus from analysts is mixed with two giving sell ratings, nine advising hold, and fifteen recommending buy, leading to an average rating of "Moderate Buy" and a target price averaging $66.85.

Onsemi Stock Performance

Currently, Onsemi has a market capitalization of $18.06 billion, a price-to-earnings (P/E) ratio of 11.81, and a P/E/G ratio of 16.74, alongside a beta of 1.59. The company’s financial metrics showcase a healthy debt-to-equity ratio of 0.38, a current ratio of 5.06, and a quick ratio of 3.38. Its 50-day and 200-day simple moving averages stand at $52.80 and $63.80, respectively. In its last earnings report on February 10, Onsemi reported earnings per share (EPS) of $0.95, slightly missing the analysts' expectations of $0.98. The company’s return on equity was 20.10%, and it posted a net margin of 22.21%. Analysts predict that Onsemi will deliver an EPS of 2.6 for the current fiscal year.

Institutional Trading of Onsemi

Institutional interest in Onsemi remains strong, with various firms adjusting their holdings. For instance, Truvestments Capital LLC increased its stake by 3.8% during the fourth quarter, now owning 5,661 shares worth approximately $357,000. Assetmark Inc. raised its holdings by 0.3%, totaling 78,495 shares valued at roughly $4.95 million. Metis Global Partners LLC and V Square Quantitative Management LLC also increased their stakes slightly. Notably, 97.70% of Onsemi's shares are held by institutional investors, indicating strong support among large financial entities.

Onsemi Company Profile

Onsemi specializes in advanced power and analog semiconductors, focusing on innovations that cater to sectors like vehicle electrification, industrial automation, and 5G cloud infrastructure. The company operates through multiple segments, including the Power Solutions Group, Advanced Solutions Group, and Intelligent Sensing Group.

Should You Invest $1,000 in Onsemi Right Now?

Given the recent downturn and current market conditions, potential investors may be weighing their options. While analysts have rated Onsemi with a "Moderate Buy" recommendation overall, it's worth considering that some top analysts have suggested alternative stocks that could present better opportunities at this time.

Onsemi, stocks, analysis