ON Semiconductor (NASDAQ:ON) Stock Rating Lowered by Benchmark

ON Semiconductor (NASDAQ:ON) was downgraded by investment analysts at Benchmark from a “buy” rating to a “hold” rating in a research note issued on Tuesday, MarketBeat.com reports.

A number of other equities analysts also recently commented on ON. Cfra reissued a “buy” rating and issued a $64.00 price objective on shares of ON Semiconductor in a research note on Tuesday, November 4th. Williams Trading set a $60.00 price target on ON Semiconductor in a report on Tuesday, November 4th. Wells Fargo & Company upped their price objective on ON Semiconductor from $70.00 to $72.00 and gave the stock an “overweight” rating in a research note on Tuesday. Stifel Nicolaus raised their price objective on ON Semiconductor from $50.00 to $60.00 and gave the company a “hold” rating in a research report on Friday, January 16th. Finally, UBS Group reiterated a “neutral” rating on shares of ON Semiconductor in a report on Monday, February 2nd. Twelve investment analysts have rated the stock with a Buy rating, sixteen have given a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, ON Semiconductor presently has a consensus rating of “Hold” and a consensus target price of $63.76.

ON Semiconductor Price Performance

Shares of ON stock opened at $71.18 on Tuesday. ON Semiconductor has a twelve month low of $31.04 and a twelve month high of $71.68. The company has a current ratio of 4.52, a quick ratio of 3.54 and a debt-to-equity ratio of 0.39. The stock has a fifty day simple moving average of $58.98 and a two-hundred day simple moving average of $53.20. The stock has a market capitalization of $28.64 billion, a price-to-earnings ratio of 209.36, a P/E/G ratio of 2.92 and a beta of 1.56.

ON Semiconductor (NASDAQ:ON) last released its quarterly earnings data on Monday, February 9th. The semiconductor company reported $0.64 earnings per share for the quarter, beating the consensus estimate of $0.62 by $0.02. ON Semiconductor had a return on equity of 12.22% and a net margin of 2.02%.The firm had revenue of $1.53 billion during the quarter, compared to the consensus estimate of $1.54 billion. During the same period in the previous year, the company posted $0.95 earnings per share. The firm’s quarterly revenue was down 11.2% on a year-over-year basis. ON Semiconductor has set its Q1 2026 guidance at 0.560-0.660 EPS. On average, analysts predict that ON Semiconductor will post 2.6 EPS for the current fiscal year.

ON Semiconductor announced that its Board of Directors has authorized a share repurchase plan on Tuesday, November 18th that authorizes the company to buyback $6.00 billion in outstanding shares. This buyback authorization authorizes the semiconductor company to purchase up to 32.7% of its shares through open market purchases. Shares buyback plans are usually a sign that the company’s board of directors believes its shares are undervalued.

Insider Activity

In related news, CFO Trent Thad sold 20,000 shares of the firm’s stock in a transaction on Wednesday, December 3rd. The stock was sold at an average price of $55.05, for a total value of $1,101,000.00. Following the completion of the transaction, the chief financial officer owned 379,448 shares in the company, valued at $20,888,612.40. This trade represents a 5.01% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. 0.31% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the company. Vanguard Group Inc. boosted its holdings in ON Semiconductor by 0.5% in the second quarter. Vanguard Group Inc. now owns 51,367,704 shares of the semiconductor company’s stock valued at $2,692,181,000 after purchasing an additional 243,238 shares during the last quarter. Ameriprise Financial Inc. boosted its stake in shares of ON Semiconductor by 7.7% in the second quarter. Ameriprise Financial Inc. now owns 12,205,996 shares of the semiconductor company’s stock worth $639,716,000 after buying an additional 877,533 shares during the last quarter. Geode Capital Management LLC boosted its stake in shares of ON Semiconductor by 0.7% in the second quarter. Geode Capital Management LLC now owns 11,296,301 shares of the semiconductor company’s stock worth $590,383,000 after buying an additional 77,795 shares during the last quarter. Allspring Global Investments Holdings LLC raised its position in ON Semiconductor by 8.1% during the fourth quarter. Allspring Global Investments Holdings LLC now owns 6,363,805 shares of the semiconductor company’s stock valued at $360,828,000 after acquiring an additional 474,725 shares in the last quarter. Finally, Norges Bank acquired a new position in ON Semiconductor in the fourth quarter valued at approximately $330,885,000. 97.70% of the stock is owned by institutional investors and hedge funds.

Key ON Semiconductor News

Here are the key news stories impacting ON Semiconductor this week:

• Positive Sentiment: Q4 EPS beat and constructive near‑term guidance: ON reported adjusted EPS ahead of consensus (reported $0.64) and gave Q1 FY2026 EPS guidance of $0.56–$0.66, together with management commentary that revenue growth and margin improvement should accelerate through 2026 — a setup investors like for earnings upside and a path to stronger buyback support. Q4 Earnings Snapshot
• Positive Sentiment: Big buyback runway / free cash flow story: Management authorized a sizable buyback program (board added a roughly $6B authorization) and Onsemi flagged record free cash flow margins in 2025 — that increases potential share repurchases as revenue recovers, a clearly positive capital‑return tailwind. Onsemi Is Near a Breakout—And Free Cash Flow Could Fuel It
• Positive Sentiment: Analyst upgrades and higher targets from some shops: Several firms raised price targets or reiterated constructive views after the print (KeyCorp / Needham among those increasing targets), which can sustain buying interest and support the rally. Analyst Revisions After Q4
• Neutral Sentiment: Mixed market/technical view — breakout narrative vs. congestion: Coverage pieces highlight a potential technical breakout and strengthening support base, but also note institutional ownership concentration and likely volatility at higher levels; this makes continuation possible but uneven. MarketBeat breakout analysis
• Negative Sentiment: Revenue decline and segment weakness: Revenue fell ~11% year‑over‑year and the top line missed slightly; Power Solutions and Analog & Mixed Signal segments contracted — a reminder that demand recovery is uneven and could cap near‑term upside if top‑line trends lag. Earnings Beat But Revenues Down Y/Y (Zacks)
• Negative Sentiment: New risk disclosure on AI integration: The company disclosed strategic, legal and cyber risks tied to AI integration initiatives — this is a non‑trivial operational/legal risk that could increase compliance or security costs and add execution uncertainty for AI‑related product launches. AI Integration Risk Disclosure

About ON Semiconductor

ON Semiconductor, which operates under the onsemi brand, is a global supplier of semiconductor components and related solutions. The company designs, manufactures and sells a broad portfolio that includes power and analog devices, discrete components, sensors and custom mixed-signal products. Its offerings are used to manage, convert and sense electrical power and signals across a wide range of electronic systems.

ON Semiconductor serves customers in key end markets such as automotive, industrial, cloud power and communications, as well as consumer and computing applications.