ON Semiconductor Corporation (ON): Among the Large-Cap Stocks Insiders and Short Sellers Are Dumping Like Crazy

Yahoo

03-05-2025

We recently compiled a list of the . In this article, we are going to take a look at where ON Semiconductor Corporation (NASDAQ:ON) stands against the other large-cap stocks.
Uncertainty is around every corner of the U.S. stock market, affecting investors' decisions. With President Trump's return to the Oval Office, the market, heavily influenced by his policies, is flashing unmistakable warning signs. Short sellers and insiders are making an aggressive exit from multiple large-cap stocks. These groups are more plugged into market sentiment than the average investor, so their abandonment of stock must be looked into more closely.
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According to a CNBC report, the market indices are on track to log their worst performance in the first 100 days of a presidency since Richard Nixon's second term as U.S. President. Meanwhile, internal selloffs are experiencing an upward trend in the market alongside bearish bets. Every day, investors wonder whether to stay put or jump overboard.
Concerning the current market situation, Cleveland Fed President Beth Hammack pointed out in a recent interview that businesses are growing increasingly wary. Because of tariff concerns and policy instability, they are holding back on investments and hiring. Such hesitation is reflected in insider behavior.
Insiders, including corporate executives, board members, and major shareholders, must report their trades. In addition, in their recent filings, a troubling pattern is noticeable: they are selling more and buying less. The livelihoods and wealth of insiders are often tied directly to the company's performance. Hence, selling shares instead of purchasing them could be seen as their way of locking in gains before tough times hit their company.
Parallel to this pattern, short sellers are also ramping up their activity. They are betting on a wave of economic uncertainty pushing down share prices. These are not moves made on a whim but stemming from a more profound structural concern regarding an organization.
Due to the current environment, the Treasury yields are climbing, and the U.S. dollar is weakening. Consequently, the prices of stocks, even the large market caps, are swinging wildly. The Federal Reserve is expected to hold interest rates steady in May and cut them later in June. Though this may seem advantageous, corporate earnings may still be pressured by higher costs and lower consumer demand, resulting in a negative outlook for equities, particularly the overvalued ones. And with their recent activities, insiders and short sellers are positioning themselves to use the opportunities to exit rather than re-enter.
According to analysts, it is not about pulling your investments by following the insiders and short sellers. Instead, it's about understanding what is going on in the market and using the knowledge to make informed decisions about your portfolio. Historically, the exit of those closest to the financials and forecasts often precedes market corrections. By paying attention to these movements, investors can elevate the resilience of their stocks as well.
We followed multiple criteria when compiling our list of the top 20 large-cap stocks being dumped by insiders and short sellers. We selected the large-cap stocks based on their market cap and stock volume. Only the companies with a market cap between $10 billion and $200 billion were included in this list since anything more would be mega-cap, and anything less is regarded as small-cap or mid-cap. Concerning stock volume, we have disregarded companies with a volume of less than 500,000. We have set the short-float limit as 5% or more to ensure that our list is made up of picks involving high bearish bets. We have included those stocks with a negative insider transaction in terms of insider selling since this signals a negative outlook for the company's future performance. The stocks are ranked according to their short percentage of float. All the data in the article was taken from financial databases and analyst reports, with all information updated as of April 30, 2025.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points ().
A semiconductor engineer in a state-of-the-art laboratory, analyzing advanced semiconductor products.
ON Semiconductor Corporation (NASDAQ:ON), headquartered in Arizona, is a designer and manufacturer of intelligent power and sensing technologies. With a strategic focus on automotive, industrial, and cloud power markets, the company competes with leading competitors like Infineon and Texas Instruments. The company's silicon carbide (SiC) and image sensor portfolios support critical applications in electric vehicles, renewable energy, and factory automation, offering differentiation in the market. ON Semiconductor Corporation (NASDAQ:ON) aims to meet the accelerating global demand for electrification by investing in capacity expansion.
The Q4 report of the company indicates a consistent decline in regional revenue. Specifically, the Japanese market has incurred a significant fall in revenue. Because of geo-political uncertainty and slower-than-expected growth in the electric vehicle segment, the company anticipates volatility in the automotive sector, which will harm the company's earnings. For 2025, ON Semiconductor Corporation (NASDAQ:ON) anticipates a revenue decline of 25%, thus driving away even the insiders from the stock. It is among the stocks that insiders and short sellers are dumping.
ON Semiconductor Corporation (NASDAQ:ON)'s short float of 6.98% places the company in the interest of speculators betting against its upside. Simultaneously, the insider activity shows a 2.06% net reduction. Though modest, the figure is a noteworthy pullback among executives. Additionally, the sustained short interest casts a shadow over investor sentiment.
Overall ON ranks 16th among our list of the large-cap stocks insiders and short sellers are dumping like crazy. While we acknowledge the potential of ON as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than ON but that trades at less than 5 times its earnings, check out our report about this .
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Disclosure: None. This article is originally published at .