ON Semiconductor Corporation’s Stock Price Plummets to $53.94, Marking a Sharp 7.49% Drop

ON Semiconductor Corporation (ON)

53.94 USD -4.37 (-7.49%) Volume: 17.53M

ON Semiconductor Corporation’s stock price stands at 53.94 USD, experiencing a significant drop of -7.49% in the latest trading session with a trading volume of 17.53M. The tech giant’s stock has been under pressure, marking a year-to-date (YTD) percentage change of -14.45%, reflecting its challenging market performance.

Latest developments on ON Semiconductor Corporation

Today, ON Semiconductor stock price took a hit after Truist downgraded the company to a ‘hold’ rating citing weak demand. This news comes amidst a broader decline in the semiconductor market, with ON Semiconductor facing a 7% drop in stock value. Despite this, analysts believe that ON Semiconductor could outperform the market by 2029, pointing to potential growth opportunities. With new initiatives like a semiconductor lab partnership with Arizona State University and a new Vice President of Semiconductor Engineering, ON Semiconductor is positioning itself for future success. While facing challenges in the current market, ON Semiconductor remains a key player in the semiconductor industry with potential for growth in the coming years.

ON Semiconductor Corporation on Smartkarma

Analysts at Baptista Research have been closely following On Semiconductor Corporation’s recent financial performance. In their report titled “ON Semiconductor Corporation: Mass Market Strategy & Inventory Management Driving Our Optimism! – Major Drivers,” they highlighted the company’s resilience in meeting or exceeding guidance for revenue, gross margin, and earnings per share in the third quarter of 2024. Despite challenges in the macroeconomic environment, strategic developments have positioned the company for long-term growth. Baptista Research is evaluating various factors that could impact the company’s stock price in the near future and conducting an independent valuation using a Discounted Cash Flow (DCF) methodology.

In another report by Baptista Research, titled “ON Semiconductor Corporation: Can The Silicon Carbide Business Expansion Offset These Challenges? – Major Drivers,” analysts examined Onsemi’s second quarter of 2024 financial performance. The company faced challenges in an inventory-heavy environment but made significant strategic advancements. With revenue of $1.74 billion aligning with guidance but representing a decline from the previous year, On Semiconductor‘s non-GAAP gross margin of 45.3% was slightly down due to underutilization caused by softened demand. Baptista Research continues to monitor the company’s progress and assess the impact of its Silicon Carbide business expansion on overcoming challenges.

A look at ON Semiconductor Corporation Smart Scores

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Looking at the Smartkarma Smart Scores for On Semiconductor, the company seems to have a bright future ahead. With a high score in Growth, it indicates that On Semiconductor is expected to experience significant expansion and development in the long term. This suggests that the company is well-positioned to capitalize on future opportunities and grow its market presence.

However, the low score in Dividend might be a concern for investors looking for steady income. On the other hand, with decent scores in Value and Resilience, On Semiconductor appears to be a stable investment option with a solid foundation. The company’s performance in Momentum also indicates that it is making steady progress in the market. Overall, On Semiconductor‘s outlook seems positive, especially in terms of growth potential and resilience.

Disclaimer: This article by Smartkarma is general in nature and 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. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
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