Traders Purchase Large Volume of ON Semiconductor Call Options (NASDAQ:ON)

ON Semiconductor Corporation (NASDAQ:ON) was the recipient of unusually large options trading on Wednesday. Traders acquired 24,165 call options on the stock. This represents an increase of approximately 45% compared to the typical volume of 16,673 call options.

Hedge Funds Weigh In On ON Semiconductor

Large investors have recently added to or reduced their stakes in the company. Private Trust Co. NA increased its stake in shares of ON Semiconductor by 72.8% in the third quarter. Private Trust Co. NA now owns 522 shares of the semiconductor company’s stock worth $26,000 after purchasing an additional 220 shares in the last quarter. Trust Co. of Toledo NA OH bought a new position in ON Semiconductor in the 2nd quarter worth $29,000. Deseret Mutual Benefit Administrators increased its stake in ON Semiconductor by 62.3% in the 3rd quarter. Deseret Mutual Benefit Administrators now owns 568 shares of the semiconductor company’s stock worth $28,000 after buying an additional 218 shares in the last quarter. Quent Capital LLC purchased a new stake in ON Semiconductor in the 3rd quarter worth $28,000. Finally, Migdal Insurance & Financial Holdings Ltd. raised its holdings in ON Semiconductor by 68.7% during the third quarter. Migdal Insurance & Financial Holdings Ltd. now owns 577 shares of the semiconductor company’s stock valued at $28,000 after acquiring an additional 235 shares during the period. Hedge funds and other institutional investors own 97.70% of the company’s stock.

ON Semiconductor Stock Performance

NASDAQ ON traded up $1.02 during trading hours on Wednesday, hitting $46.58. 6,513,366 shares of the company’s stock traded hands, compared to its average volume of 9,518,697. The company has a current ratio of 5.02, a quick ratio of 3.37 and a debt-to-equity ratio of 0.42. ON Semiconductor has a 52 week low of $31.04 and a 52 week high of $74.52. The firm has a market capitalization of $18.74 billion, a P/E ratio of 43.50, a P/E/G ratio of 2.58 and a beta of 1.56. The business’s fifty day moving average price is $49.88 and its two-hundred day moving average price is $50.40.

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

ON Semiconductor announced that its board has initiated a stock buyback program on Tuesday, November 18th that permits the company to repurchase $6.00 billion in shares. This repurchase authorization permits the semiconductor company to purchase up to 32.7% of its shares through open market purchases. Shares repurchase programs are generally a sign that the company’s management believes its stock is undervalued.

Wall Street Analysts Forecast Growth

Several equities research analysts recently commented on ON shares. Susquehanna reiterated a “positive” rating and issued a $65.00 price objective (down from $75.00) on shares of ON Semiconductor in a report on Tuesday, August 5th. TD Cowen raised their price target on shares of ON Semiconductor from $55.00 to $60.00 and gave the company a “buy” rating in a report on Tuesday, November 4th. Bank of America reduced their price target on shares of ON Semiconductor from $56.00 to $52.00 and set a “neutral” rating for the company in a research note on Friday, September 5th. Williams Trading set a $60.00 price objective on shares of ON Semiconductor in a research report on Tuesday, November 4th. Finally, Rosenblatt Securities reaffirmed a “neutral” rating and issued a $50.00 target price on shares of ON Semiconductor in a research report on Tuesday, November 4th. Fourteen analysts have rated the stock with a Buy rating, fourteen have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, the stock has an average rating of “Hold” and an average target price of $59.08.

ON Semiconductor 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.