Latest news with #ONSemiconductorCorporation
Yahoo
03-05-2025
- Business
- Yahoo
ON Semiconductor Corporation (ON): Among the Large-Cap Stocks Insiders and Short Sellers Are Dumping Like Crazy
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. READ ALSO: 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 . READ NEXT: and . Disclosure: None. This article is originally published at .
Yahoo
02-05-2025
- Business
- Yahoo
ON Semiconductor Corporation (ON): Among the Worst Performing Stocks in S&P 500 So Far in 2025
We recently published a list of the 11 Worst Performing Stocks in S&P 500 So Far in 2025. In this article, we will take a look at where ON Semiconductor Corporation (NASDAQ:ON) stands against other worst performing stocks this year. After a two-year surge of 53%, marking the best performance for the broad market index since the 1997-98 rally, stocks have been taken for a wild ride in 2025 due to uncertainties around recent tariffs, resulting in a year-to-date decline of nearly 6%. READ ALSO: 11 Most Promising Stocks According to Analysts and 15 Best Dividend Stocks to Buy for Long-Term Passive Income. Trends over the past century have shown that sustained high returns are uncommon. Following the strong back-to-back performance in the 1920s, markets fell sharply in 1929, which marked the beginning of the Great Depression. Then, after recovering in 1935 and 1936, it took a giant step back again a year later. A recent report by a leading investment banking company also pointed out how, historically, bull markets produce mediocre returns in the third year. Although they are usually not negative. The New York-based firm has projected positive but muted returns for 2025, while also noting that the continued adoption of artificial intelligence has the potential to lead to a productivity boom and a stronger market rally. The broad market index ended 0.74% higher on April 24, gaining 4.6% for the week, driven by a rebound in tech shares. The US Dollar also had its first weekly rise since March, as investors looked for signs that the ongoing trade war may be easing. Washington also appears to have softened its stance on trade relations with Beijing. In an interview with Time magazine on April 22, Trump stated his administration was engaged with China on striking a tariff deal. The US president also expects announcements on many other trade deals to be made over the next three to four weeks. While talking to CNBC, Jay Hatfield, founder and chief investment officer of InfraCap, expressed optimism that the worst of the uncertainty around tariffs is over: 'The confusion about whether there's really talks going on with China or not took some steam out of the market. Our view is that we've reached peak tariff tantrum and so it's likely to be more positive than negative.' Chip Rewey, CIO of Rewey Asset Management, said the following on the situation by Reuters: 'This week you've seen kind of relief that maybe some of the worst case of the Trump tariff actions won't come true. While we've recovered from some of the lows, we haven't pushed back to highs. And I think somewhere in that range is where we'll stay for a while.' With that said, let's now head over to discuss the worst performing stocks this year. A technician at a sophisticated computer hardware rig, emphasizing the company's chip-manufacturing capabilities. For this article, we went through screeners to identify stocks listed on the S&P index. From there, we picked the top 11 stocks with the worst year-to-date negative returns in share price, as of the close of business on Friday, April 25, 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 (see more details here). YTD Decline in Share Price: -35.78% ON Semiconductor Corporation (NASDAQ:ON) is a semiconductor supplier company that provides intelligent power and sensing solutions. The stock has been in a relentless downtrend over the last six months, with its share price slumping nearly 48%. As of April 25, ON Semiconductor Corporation (NASDAQ:ON)'s year-to-date decline stood at 35.78%, making it one of the worst performing stocks in the S&P so far in 2025. ON Semiconductor Corporation (NASDAQ:ON) has been pressured by a slowdown in the EV and industrial markets, which resulted in a 14% drop in revenue and a 23% decrease in diluted earnings per share in fiscal 2024. Experts believe the stock's weak price action is also making investors cautious amid the ongoing market uncertainty. Artisan Mid Cap Fund stated the following regarding ON Semiconductor Corporation (NASDAQ:ON) in its Q4 2024 investor letter: 'We ended our investment campaigns in ON Semiconductor Corporation (NASDAQ:ON), and CoStar Group during the quarter. ON Semiconductor is a leading designer and manufacturer of chips for power management and image sensing. From a battery-electric vehicle (EV) standpoint, ON is a leading producer of silicon carbide chips. Shares have been under pressure as the company grapples with multiple quarters of inventory right-sizing across the entire auto supply chain and slower-than-expected EV sales growth. While ON is seeing smaller sales declines than peers due to its market share gains, we are concerned that moderating US and European EV growth trends will weigh on the company's 2025 performance. We exited the position.' ON Semiconductor Corporation (NASDAQ:ON)'s share price also suffered a setback in early March when Allegro MicroSystems, Inc. rejected the company's $6.9 billion all-cash acquisition offer. In April, several analysts lowered their price targets for the stock, citing factors ranging from tariff impact to weakness in the automotive markets. Overall, ON ranks 5th among the 11 Worst Performing Stocks in S&P 500 So Far in 2025. While we acknowledge the potential of ON, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. 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 cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
02-05-2025
- Automotive
- Yahoo
Is ON Semiconductor Corporation (ON) the Cheap Semiconductor Stock to Buy Now?
We recently published a list of . In this article, we are going to take a look at where ON Semiconductor Corporation (NASDAQ:ON) stands against other cheap semiconductor stocks to buy now. The semiconductor industry has been experiencing a recent wave of surging demand, technological innovation, and shifting macroeconomic dynamics. According to Deloitte, after a robust performance in 2024, the global semiconductor market is forecasted to grow even further in 2025, with total sales expected to reach an all-time high of $697 billion. This trajectory places the sector firmly on track to meet a great milestone of $1 trillion in annual sales by 2030, for which the sector will require a compound annual growth rate of 7.5% from 2025 onward. By 2040, that figure could potentially double again, underscoring the long-term investment appeal of the semiconductor value chain. The extraordinary demand for generative artificial intelligence (gen AI) processors is a major factor in this growth. The gen AI chip market was initially expected to reach $50 billion, according to Deloitte's 2024 Technology, Media, and Telecommunications Predictions. It greatly exceeded those projections, surpassing $125 billion in 2024 and contributing to more than 20% of worldwide chip sales. A combination of CPUs, GPUs, memory, and data center components is driving the rapid expansion of AI infrastructure, which is expected to drive the semiconductor industry and generate disproportionate profits for market leaders while also changing capital allocation tactics. However, not all corners of the semiconductor landscape have enjoyed AI-level tailwinds. Segments like automotive, analog, and smartphone chips struggled in 2024, hampered by oversupply and subdued end-market demand. Yet, as 2025 unfolds, these verticals are showing signs of recovery. Automotive chips stand to benefit from the ongoing electrification of transport and adoption of advanced driver-assistance systems (ADAS). Analog and IoT-focused semiconductors are gaining renewed investor interest as key markets stabilize. Even the smartphone segment, though slower to rebound, could offer selective upside driven by next-gen device rollouts and operational efficiencies. The current market environment adds a unique layer of complexity—and opportunity. Following a selloff that has rattled tech stocks in early 2025, valuations across the board have compressed, particularly in the AI and high-growth segments. While not yet at the deep-discount levels seen during the 2022 downturn, the recent correction has made many quality names appear far more attractively priced. According to Morningstar, this has opened a window for investors to re-enter or increase exposure to the sector at more reasonable valuations, especially as overvalued concerns give way to strategic re-evaluation. Amid this evolving backdrop, lesser-known and undervalued players in the memory and semiconductor equipment spaces are also beginning to draw attention. Stabilizing demand, improved customer alignment, and increasing relevance in the AI hardware ecosystem are providing the groundwork for a potential re-rating. Meanwhile, investment in automation and IoT technologies continues to climb, highlighting a broader market transition that favors resilience and adaptability. In this article, we identify 10 cheap semiconductor stocks that offer compelling value in today's shifting landscape. But before diving into the list, we outline the methodology used to filter and evaluate these opportunities. For this article, we have screened the most active current semiconductor stocks with a low P/E to arrive at our list of cheap semiconductor stocks to buy now. From there, we picked companies with the highest number of hedge fund investors, as per Insider Monkey's database of Q4 2024. The stocks are ranked in ascending order of their hedge fund investors. 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. Number of Hedge Fund Holders: 52 P/E: 10.31 ON Semiconductor Corporation (NASDAQ:ON) headquartered in Scottsdale, AZ, delivers intelligent power and sensing solutions, focusing on automotive and industrial markets. Operating through Power Solutions Group (PSG), Analog and Mixed-Signal Group (AMG), and Intelligent Sensing Group (ISG), the company continues to innovate. In March, ON Semiconductor Corporation (NASDAQ:ON) launched the Hyperlux ID family—the industry's first real-time indirect time-of-flight (iToF) sensor. Offering long-range depth sensing up to 30 meters and real-time 3D imaging, Hyperlux ID combines visual and depth data in one compact device, addressing limitations of traditional iToF sensors. Additionally, onsemi introduced its first 1200V silicon carbide (SiC) MOSFET-based SPM 31 IPMs, delivering industry-leading efficiency, thermal performance, and system cost advantages for industrial inverter applications. Financially, ON Semiconductor Corporation (NASDAQ:ON) reported $7.08 billion in 2024 revenue (down 14% YoY) and $1.57 billion in net income (down 28% YoY). Despite a strong 170% five-year return, near-term outlooks are cautious. B. Riley downgraded ON Semiconductor Corporation (NASDAQ:ON) to 'Neutral' from 'Buy,' cutting the price target to $41, citing weaker auto and industrial demand. Still, analyst consensus sees a median price target of $55, offering 39% upside potential. Institutional ownership remains strong at 104.64%, signaling confidence in ON Semiconductor Corporation (NASDAQ:ON)'s long-term strategic positioning. Overall, ON ranks 3rd on our list of cheap semiconductor stocks to buy now. While we acknowledge the potential of semiconductor stocks, 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 . READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
30-04-2025
- Business
- Yahoo
ON Semiconductor Corporation (ON): Among Billionaire Michael Platt's Stock Picks with Huge Upside Potential
We recently published a list of . In this article, we are going to take a look at where ON Semiconductor Corporation (NASDAQ:ON) stands against other billionaire Michael Platt's stock picks with huge upside potential. Michael Platt is the co-founder and CEO of BlueCrest Capital Management, which was founded in 2000 following his almost decade-long employment at JPMorgan. BlueCrest reached its height in 2013, when it became one of the world's largest hedge funds, managing more than $35 billion in assets. In 2015, in response to equity challenges and disappointing results that caused investor withdrawals, Platt converted the company into a family office. This strategy adjustment proved to be a game-changing decision for BlueCrest Capital Management. Since becoming a family office, the fund has generated impressive net returns, including 50% in 2016 and 54% in 2017. It has continued to succeed, delivering returns of at least 25% annually, including outstanding net returns of 95% in 2020 and 153% in 2022. Platt's aversion to the spotlight is almost as famous as is his financial competence. His last significant public appearance was more than a decade ago, to promote an art display featuring a life-size wax gorilla nailed to a wooden cross. Since then, he has shunned the media. Despite his preference for privacy, Platt has been involved in a number of regulatory disputes. BlueCrest has received hefty penalties from both the US Securities and Exchange Commission and the UK Financial Conduct Authority for conflicts of interest and other regulatory violations. However, these setbacks have had no impact on his financial or reputational status, owing to the fact that BlueCrest does not have any external clients. According to Forbes, Michael Platt is Britain's richest hedge fund manager, valued at over $18.8 billion as of December 2024, and is among just a handful who have managed to profit in 2025 despite the global stock market sell-off caused by President Trump's policies. According to Bloomberg, BlueCrest is already up 20% for the year, considering fees and costs. Platt allegedly employed aggressive leverage to take advantage of the increased volatility caused by President Trump's trade war, with BlueCrest currently on course to finish a decade of consecutive returns. For this article, we examined BlueCrest Capital Management's Q4 2024 13F filings to list down billionaire Cliff Asness' stock picks with the highest upside potential. We ranked the companies in ascending order of their upside potential. These equities are also popular among elite hedge funds. 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 (). Michael Platt of BlueCrest Capital Semiconductor Corporation (NASDAQ:ON) is an American semiconductor manufacturing company that produces various components, primarily for the electric vehicle and industrial end markets. Some of the company's products include advanced MOSFETs, image sensors, and Silicon Carbide technology (EliteSiC). On April 17, Stifel analysts revised their outlook for ON Semiconductor Corporation (NASDAQ:ON), lowering the 12-month price target from $52 to $42, while maintaining a Hold rating on the company. The change reflects worries about the overall macroeconomic climate, as well as specific issues in the automotive sector, which is an essential market for the company. In addition to the automotive sector's impact, ON Semiconductor's gross margins are under pressure. While the company maintained a decent gross margin, analysts observed that its fabrication facilities are currently underused, which is negatively impacting margins in the short term. In addition, ON Semiconductor Corporation (NASDAQ:ON) dropped its plan to acquire Allegro MicroSystems, instead focusing on increasing shareholder value through its existing share repurchase program. This move comes after ON Semiconductor Corporation (NASDAQ:ON) assessed that there was no viable road ahead with Allegro's Board of Directors. The company intends to focus on its core growth objectives, notably in the automotive, industrial, and AI data center sectors. Overall, ON ranks 4th on our list of billionaire Michael Platt's stock picks with huge upside potential. While we acknowledge the potential for ON as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. 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 trades at less than 5 times its earnings, check out our report about this . READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
03-03-2025
- Business
- Yahoo
Is Now An Opportune Moment To Examine ON Semiconductor Corporation (NASDAQ:ON)?
Let's talk about the popular ON Semiconductor Corporation (NASDAQ:ON). The company's shares received a lot of attention from a substantial price movement on the NASDAQGS over the last few months, increasing to US$73.95 at one point, and dropping to the lows of US$47.04. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether ON Semiconductor's current trading price of US$47.05 reflective of the actual value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let's take a look at ON Semiconductor's outlook and value based on the most recent financial data to see if there are any catalysts for a price change. Check out our latest analysis for ON Semiconductor Good news, investors! ON Semiconductor is still a bargain right now according to our price multiple model, which compares the company's price-to-earnings ratio to the industry average. We've used the price-to-earnings ratio in this instance because there's not enough visibility to forecast its cash flows. The stock's ratio of 12.61x is currently well-below the industry average of 30.96x, meaning that it is trading at a cheaper price relative to its peers. However, given that ON Semiconductor's share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility. Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it's the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. ON Semiconductor's earnings over the next few years are expected to increase by 33%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value. Are you a shareholder? Since ON is currently below the industry PE ratio, it may be a great time to accumulate more of your holdings in the stock. With a positive outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as financial health to consider, which could explain the current price multiple. Are you a potential investor? If you've been keeping an eye on ON for a while, now might be the time to make a leap. Its buoyant future profit outlook isn't fully reflected in the current share price yet, which means it's not too late to buy ON. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed investment decision. So if you'd like to dive deeper into this stock, it's crucial to consider any risks it's facing. For example, we've discovered 1 warning sign that you should run your eye over to get a better picture of ON Semiconductor. If you are no longer interested in ON Semiconductor, you can use our free platform to see our list of over 50 other stocks with a high growth potential. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
