ON Semiconductor Corporation (NASDAQ:ON) has a beta of 1.98, a 12-month trailing P/E ratio of 62.07, and a growth ratio of 9.16. The stock’s Relative Strength Index (RSI) is 71.21, with weekly volatility at 2.28% and ATR at 0.89. The ON stock’s 52-week price range has touched low of $8.17 and a $29.75 high. Its shares traded higher over the last trading session, gaining 2.82% on 12/04/20. The shares fell to a low of $29.15 before closing at $29.92. Intraday shares traded counted 7.67 million, which was -7.42% lower than its 30-day average trading volume of 7.14M. ON’s previous close was $29.10 while the outstanding shares total 410.80M.
Investors have identified the Semiconductors company ON Semiconductor Corporation as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $11.97 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
ON Semiconductor Corporation (ON) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For ON, the company has in raw cash 1.65 billion on their books with 701.6 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on an incline. In terms of their assets, the company currently has 3812600000 million total, with 1803100000 million as their total liabilities.
ON were able to record 219.0 million as free cash flow during the third quarter of the year, this saw their quarterly net cash flow reduce by 760.6 million. In cash movements, the company had a total of 483.9 million as operating cash flow.
Potential earnings growth for ON Semiconductor Corporation (ON)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the third quarter of the year, ON Semiconductor Corporation recorded a total of 1.32 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with -4.9% coming in sequential stages and their sales for the third quarter increasing by 7.88%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 876.1 million trying to sell their products during the last quarter, with the result yielding a gross income of 441.2 million. This allows shareholders to hold on to 410.80M with the revenue now reading 0.39 cents per share. This is a figure that is close to analyst’s prediction for their fourth quarter (0.19 cents a share).
Having a look at the company’s valuation, the company is expected to record 1.49 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on ON sounds very interesting.
Is the stock of ON attractive?
In related news, EVP & Chief Operating Officer, Schromm William A. sold 104,462 shares of the company’s stock in a transaction that recorded on Nov 13. The sale was performed at an average price of 27.96, for a total value of 2,921,144. As the sale deal closes, the Exec VP Sales & Marketing, Rolls Paul E now sold 27,818 shares of the company’s stock, valued at 776,887. Also, Exec VP & CFO, GUTMANN BERNARD sold 99,144 shares of the company’s stock in a deal that was recorded on Nov 10. The shares were price at an average price of 27.06 per share, with a total market value of 2,683,114. Following this completion of acquisition, the EVP & GM, Pwr Sol Grp, KEETON SIMON now holds 7,705 shares of the company’s stock, valued at 219,593. In the last 6 months, insiders have changed their ownership in shares of company stock by 1.10%.
14 out of 26 analysts covering the stock have rated it a Buy, while 7 have maintained a Hold recommendation on ON Semiconductor Corporation. 2 analysts has assigned a Sell rating on the ON stock. The 12-month mean consensus price target for the company’s shares has been set at $27.74.