The Case for and Against ON Semiconductor Corporation (ON)

ON Semiconductor Corporation (ON) is an interesting player in the Technology space, with a focus on Semiconductor – Broad Line. The stock has been active on the tape, currently trading at $20.94, down from yesterday’s close by -0.90%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

ON Semiconductor Corporation (ON) currently trades with a market capitalization of $8.96 Billion. That value represents a market adjusting for revenues that have been growing by 46.27 % on a quarterly year/year basis as of the company’s last quarterly report.

You can get a sense of how sustainable that is by a levered free cash flow of $833.3 Million over the past twelve months. Generally speaking, earnings are expected to fall in coming quarters. Analysts are forecasting earnings of $0.37 on a per share basis this quarter. Perhaps, that suggests something about why 2.44% of the outstanding share supply is held by institutional investors.

Technical Analysis

No analysis is ever complete without a thorough survey of a stock’s technical behavior. Looking at the stock’s movement on the chart, ON Semiconductor Corporation recorded a 52-week high of $22.15. It is now trading 1.21% off that level. The stock is trading $20.68 its 50-day moving average by -0.26%. The stock carved out a 52-week low down at $12.37.

In recent action, ON Semiconductor Corporation (ON) has made a move of +4.28% over the past month, which has come on weak relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 19.03, and it’s gotten there by action that has been more volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 4.34% with $418.75 Million sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of ON.

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