Investors Purchase High Volume of onsemi Call Options (NASDAQ:ON)

onsemi (NASDAQ:ON) was the target of unusually large options trading on Friday. Traders bought 28,912 call options on the company. This represents an increase of 36% compared to the typical volume of 21,328 call options.

Key onsemi News

Here are the key news stories impacting onsemi this week:

• Positive Sentiment: Revised Synaptics deal is viewed as more shareholder-friendly. onsemi will acquire Synaptics for $123 per share in cash, valuing the transaction at approximately $5.7 billion. The revised structure replaces the previous all-stock agreement, reduces dilution risk and is expected to provide immediate EPS accretion for onsemi shareholders. The amendment followed an unsolicited competing proposal for Synaptics. onsemi and Synaptics revised merger agreement
• Positive Sentiment: Analysts raised their valuation expectations. Wells Fargo lifted its onsemi price target from $85 to $100 and assigned an “overweight” rating. Needham also reaffirmed a “buy” rating with a $116 target. The upgrades indicate that analysts believe the revised transaction could improve onsemi’s earnings profile and strategic position. Analyst ratings and price targets
• Positive Sentiment: Broader market conditions provided additional support. U.S. stocks and technology shares were broadly higher, helping semiconductor names attract buying interest. The positive sector backdrop likely amplified the favorable reaction to onsemi’s deal announcement. Technology stocks moving higher
• Neutral Sentiment: Investors will still monitor execution risk. Although the all-cash structure removes stock dilution, the acquisition will require substantial cash funding and remains subject to customary closing conditions and regulatory approval. The transaction’s longer-term benefit depends on successful integration and realization of expected synergies.

Institutional Investors Weigh In On onsemi

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Janus Henderson Group PLC increased its position in shares of onsemi by 10.9% during the 1st quarter. Janus Henderson Group PLC now owns 13,700,884 shares of the semiconductor company’s stock valued at $848,392,000 after purchasing an additional 1,345,894 shares during the period. Van ECK Associates Corp raised its position in onsemi by 16.6% in the second quarter. Van ECK Associates Corp now owns 5,143,343 shares of the semiconductor company’s stock worth $486,252,000 after acquiring an additional 731,540 shares in the last quarter. Pictet Asset Management Holding SA lifted 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 valued at $284,495,000 after acquiring an additional 615,905 shares during the last quarter. Dimensional Fund Advisors LP boosted its position in shares of onsemi by 6.4% during the 1st quarter. Dimensional Fund Advisors LP now owns 3,442,177 shares of the semiconductor company’s stock valued at $212,997,000 after purchasing an additional 207,587 shares in the last quarter. Finally, Assenagon Asset Management S.A. boosted its position in shares of onsemi by 74.8% during the 2nd quarter. Assenagon Asset Management S.A. now owns 2,807,808 shares of the semiconductor company’s stock valued at $265,450,000 after purchasing an additional 1,201,534 shares in the last quarter. Institutional investors own 97.70% of the company’s stock.

onsemi Stock Performance

onsemi stock traded up $3.80 during midday trading on Friday, reaching $83.88. 13,421,648 shares of the stock traded hands, compared to its average volume of 10,503,127. onsemi has a fifty-two week low of $44.56 and a fifty-two week high of $134.92. The company has a current ratio of 3.46, a quick ratio of 2.49 and a debt-to-equity ratio of 0.51. The firm has a market cap of $32.66 billion, a price-to-earnings ratio of 53.98, a PEG ratio of 0.64 and a beta of 2.05. The firm has a fifty day moving average price of $76.44 and a two-hundred day moving average price of $88.44.

onsemi (NASDAQ:ON) last issued its quarterly earnings data on Monday, August 3rd. The semiconductor company reported $0.74 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.72 by $0.02. onsemi had a return on equity of 14.06% and a net margin of 10.17%.The business had revenue of $1.60 billion during the quarter, compared to the consensus estimate of $1.59 billion. During the same period in the previous year, the firm posted $0.53 earnings per share. The business’s revenue was up 9.2% on a year-over-year basis. onsemi has set its Q3 2026 guidance at 0.810-0.930 EPS. On average, equities research analysts forecast that onsemi will post 3.2 earnings per share for the current year.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently weighed in on the company. Sanford C. Bernstein reiterated an “outperform” rating and issued a $62.00 price target on shares of onsemi in a report on Wednesday, August 12th. Zacks Research lowered shares of onsemi from a “strong-buy” rating to a “hold” rating in a research note on Monday, July 6th. Needham & Company LLC restated a “buy” rating and issued a $116.00 price target on shares of onsemi in a research report on Friday. Wells Fargo & Company lifted their price target on shares of onsemi from $85.00 to $100.00 and gave the company an “overweight” rating in a report on Friday. Finally, Rosenblatt Securities reiterated a “neutral” rating and set a $85.00 price objective on shares of onsemi in a research note on Thursday, September 17th. Fifteen research analysts have rated the stock with a Buy rating and fifteen have issued a Hold rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $95.36.

About onsemi

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.