Investors Purchase Large Volume of Put Options on ON Semiconductor (ON)

ON Semiconductor Corp (NASDAQ:ON) saw unusually large options trading on Wednesday. Traders acquired 3,636 put options on the stock. This represents an increase of approximately 888% compared to the average daily volume of 368 put options.

Shares of ON traded down $0.33 during mid-day trading on Friday, hitting $17.54. 7,725,403 shares of the company’s stock traded hands, compared to its average volume of 6,664,268. The company has a debt-to-equity ratio of 0.65, a quick ratio of 0.91 and a current ratio of 1.54. ON Semiconductor has a 1 year low of $17.23 and a 1 year high of $27.10. The stock has a market capitalization of $7.86 billion, a PE ratio of 12.01, a price-to-earnings-growth ratio of 0.76 and a beta of 2.01.

ON Semiconductor (NASDAQ:ON) last posted its earnings results on Sunday, July 29th. The semiconductor company reported $0.46 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $0.45 by $0.01. ON Semiconductor had a return on equity of 24.14% and a net margin of 16.66%. The firm had revenue of $1.46 billion for the quarter, compared to analysts’ expectations of $1.43 billion. Research analysts forecast that ON Semiconductor will post 1.84 EPS for the current fiscal year.

A number of equities analysts recently weighed in on ON shares. BidaskClub cut ON Semiconductor from a “strong-buy” rating to a “buy” rating in a report on Friday, June 8th. Zacks Investment Research raised ON Semiconductor from a “hold” rating to a “buy” rating and set a $25.00 price objective on the stock in a report on Monday, July 2nd. ValuEngine cut ON Semiconductor from a “buy” rating to a “hold” rating in a report on Monday, July 2nd. Nomura began coverage on ON Semiconductor in a report on Wednesday, July 18th. They set a “buy” rating and a $30.00 price objective on the stock. Finally, Mizuho reaffirmed a “buy” rating and issued a $27.00 price target on shares of ON Semiconductor in a research note on Monday, July 30th. Four research analysts have rated the stock with a sell rating, seven have issued a hold rating, ten have issued a buy rating and one has issued a strong buy rating to the company’s stock. The company has a consensus rating of “Hold” and an average target price of $25.96.

In other ON Semiconductor news, Director Paul Anthony Mascarenas sold 9,100 shares of the firm’s stock in a transaction dated Friday, September 28th. The stock was sold at an average price of $18.16, for a total value of $165,256.00. Following the completion of the transaction, the director now owns 57,104 shares in the company, valued at approximately $1,037,008.64. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, insider Bernard Raymond Colpitts, Jr. sold 1,214 shares of the firm’s stock in a transaction dated Monday, August 13th. The stock was sold at an average price of $21.44, for a total value of $26,028.16. Following the completion of the transaction, the insider now owns 18,357 shares of the company’s stock, valued at approximately $393,574.08. The disclosure for this sale can be found here. Insiders have sold a total of 39,494 shares of company stock valued at $768,883 in the last quarter. 1.29% of the stock is owned by corporate insiders.

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Bank of Montreal Can bought a new stake in shares of ON Semiconductor during the second quarter valued at approximately $216,682,000. LSV Asset Management boosted its holdings in ON Semiconductor by 1.3% in the second quarter. LSV Asset Management now owns 8,193,533 shares of the semiconductor company’s stock worth $182,183,000 after acquiring an additional 108,305 shares in the last quarter. Blue Harbour Group L.P. boosted its holdings in ON Semiconductor by 114.4% in the first quarter. Blue Harbour Group L.P. now owns 5,508,908 shares of the semiconductor company’s stock worth $134,748,000 after acquiring an additional 2,938,900 shares in the last quarter. TCW Group Inc. boosted its holdings in ON Semiconductor by 2.9% in the second quarter. TCW Group Inc. now owns 5,109,154 shares of the semiconductor company’s stock worth $113,602,000 after acquiring an additional 142,020 shares in the last quarter. Finally, Sumitomo Mitsui Asset Management Company LTD boosted its holdings in ON Semiconductor by 0.5% in the second quarter. Sumitomo Mitsui Asset Management Company LTD now owns 4,914,735 shares of the semiconductor company’s stock worth $109,279,000 after acquiring an additional 24,040 shares in the last quarter. Institutional investors own 92.30% of the company’s stock.

ON Semiconductor Company Profile

ON Semiconductor Corporation manufactures and sells semiconductor components for various electronic devices worldwide. It operates through three segments: Power Solutions Group, Analog Solutions Group, and Image Sensor Group. The Power Solutions Group segment offers discrete, module, and integrated semiconductor products for various applications, such as power switching, power conversion, signal conditioning, circuit protection, signal amplification, and voltage reference.

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