ON Semiconductor Corporation (ON) Stock: Here’s Why It’s Falling

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ON Semiconductor Corporation (ON) is headed up in the market today. The company, focused on the technology industry, is currently trading at $19.60 after falling -6.58% so far in today’s session. In terms of tech stocks, there are a number of aspects that have the potential to generate movement in the market. News tends to be one of the biggest reasons for the movement. Here are the recent headlines associated with ON:

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May-10-19 09:17AM Bragar Eagel & Squire, P.C. is Investigating the Board of Directors of Quantenna Communications, Inc. (NASDAQ: QTNA) on Behalf of Quantenna Stockholders and Encourages Quantenna Investors to Contact the Firm
May-09-19 12:00PM ON Semiconductor Executive Named to Alphacore Inc. Advisory Board
May-08-19 03:46PM ON Semiconductor Showcases Latest Low-Power Innovations for Industrial, Personal IoT and Smart Homes/Buildings at IoT World 2019
May-05-19 02:35PM Benzinga’s Bulls & Bears Of The Week: Apple, Disney, GE, Sprint And More
May-04-19 06:03PM 3 Top Takeaways from Cypress Semiconductor’s Earnings Call

Nonetheless, any time investors are making an investing decision, investors should focus on far more than just news, this is especially the case in the ever changing technology sector. Here’s what’s happening in regard to ON Semiconductor Corporation.

Recent Movement Out of ON

Although a decline in a single session, like what we’re seeing from ON Semiconductor Corporation might lead to fear in some investors, a single session fall alone shouldn’t be the basis of a decision to, or not to, invest in a company. It is always smart to look at trends experienced by the stock beyond a single trading day. As it relates to ON, here are the returns on investment that we have seen:

  • Past 5 Sessions – In the last week, ON has seen a price change that amounts to -14.63%.
  • Past Month – The monthly ROI from ON Semiconductor Corporation works out to -13.85%.
  • Past Quarter – Throughout the last 3 months, the stock has generated a return of -11.87%
  • Past Six Months – Over the last six months, we’ve seen a change that amounts to 6.64% from the company.
  • This Year So Far – Since the open of this year ON has generated a return of 18.72%.
  • Annually – Finally, over the last full year, we have seen movement that comes to -16.98% out of ON. Over this period of time, the stock has traded at a high of -25.70% and a low of 34.71%.

Ratios Worth Paying Attention To

Digging into various ratios associated with a stock generally gives prospective investors a look of how dangerous and/or rewarding a pick might be. Here are some of the most important ratios to think about when looking at ON.

Short Ratio – The short ratio is a measure of short interest. The higher this short ratio, the more investors believe that the stock is going to go down. Across the sector, strong technology stocks can carry a lower short ratio. On the other hand, we also see quite a few short squeezes in the sector. Nonetheless, with regard to ON Semiconductor Corporation, the stock’s short ratio amounts to 3.70.

Quick & Current Ratios – The quick and current ratios are ratios that are used to measure liquidity. Basically, they measure the company’s abilities to pay for its debts when they come due based on current assets or quick assets. Because in tech, many companies are reliant on the continuation of support from investors as they work to bring new technologies to market, the quick and current ratios can be damning. However, quite a few gems in the technology industry come with positive current and quick ratios. As far as ON, the quick and current ratios total up to 1.40 and 2.30 respectively.  

Book To Share Value – The book to share value compares the the share price to the book value of assets that are owned by the company. In the case of ON Semiconductor Corporation, that ratio equates to 7.79.

Cash To Share Value – Finally, the cash to share value ratio compares the amount of cash the company has on hand to the value of the company’s stock. As it relates to ON, the cash to share value ratio comes to 2.26.

Investors Tend To Follow The Big Money

Humans that are into investing seem to be infatuated with the term “Smart money follows big money.” It makes sense. Big money became big money by making smart decisions in the market. So, by following the moves of big money institutions and insiders, we can get a glimpse of what market pros think about a stock. When it comes to big money interest in ON, here’s what we’re seeing:

Institutions own 98.40% of the company. Institutional interest has moved by 0.44% over the past three months. When it comes to insiders, those who are close to the company currently own 1.60% percent of ON shares. Institutions have seen ownership changes of an accumulative -2.10% over the last three months.

Analyst Opinions Of ON Semiconductor Corporation

Although it’s rarely a good idea to blindly follow the thoughts of analysts, it is a smart idea to use their analysis when validating your own when it comes to making an investment decision in the technology space. Here are the most recent moves that we’ve seen from analysts when it comes to ON.

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Apr-30-19 Upgrade Jefferies Hold → Buy $26 → $29
Apr-17-19 Downgrade Longbow Buy → Neutral
Mar-27-19 Upgrade Goldman Neutral → Buy $22 → $26
Mar-11-19 Reiterated B. Riley FBR Buy $27 → $30
Feb-22-19 Initiated Cowen Outperform

What We’ve Seen In Financial Results

At the moment, analysts are expecting that throughout the full year, earnings per diluted share will come in at $2.05. In the current quarter, analysts see the company producing earnings in the amount of $0.42. Over the last 5 years, ON has generated revenue in the amount of $16.10% with earnings coming in at 31.80%. On a quarter over quarter basis, earnings have seen movement of -13.10% and revenue has seen movement of 0.70%.

What’s Going On With Share Counts?

Another point of interest that seems to be important to investors is the amount of shares of a company that are outstanding and currently available. At the moment, there are 415.76M shares of ON Semiconductor Corporation outstanding. Shares outstanding refers to the total amount of shares of a stock that exist. As far as the float goes, or the amount of shares that are actually available on the retail market, ON has a float of 407.21M.

Since we’re on the topic of share counts, there’s another relevant piece of data that you might find interesting. That would be the short percentage of the float. Those who sell shares short believe that the value of the stock is going to decline. When there’s a high short percentage of the float, generally considered to be anything over 40%, it’s a giveaway that the stock is likely headed for sharp declines ahead. Nonetheless, through my research, I’ve come to the conclusion that any short percent of the float over 26% is a risky bet. When it comes to ON, the short percent of the float is 5.82%.

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