Hassane El-Khoury, CEO and President of ON Semiconductor Corp (NASDAQ:ON), recently sold 1,500 shares of the company’s common stock. The shares were sold at a price of $72.71 each, totaling $109,064. Following this transaction, El-Khoury now directly owns 839,210 shares. This figure includes an additional 90 shares acquired under the company’s Employee Stock Purchase Plan since his last filing.
In other recent news, ON Semiconductor has been in the spotlight due to several key developments. The company's Q2 revenues reached $1.74 billion, leading to several analyst firms adjusting their price targets. Truist Securities, TD Cowen, and Baird raised their targets to $97, $90, and $70, respectively, citing factors such as effective product development, cost management, and market share gains.
However, despite the positive momentum, Citi maintains a neutral rating on the stock, pointing to potential risks such as a slowdown in EV demand and an oversupply situation. The company's Q3 revenue is projected to range between $1.7 billion and $1.8 billion, with non-GAAP earnings per share expected to be between $0.91 and $1.03.
Additionally, ON Semiconductor announced the resignation of board member Atsushi Abe after a tenure of thirteen years. The company has not yet disclosed a successor or the process for filling the vacancy. In terms of expansion, the company has added SWIR Vision Systems to its portfolio to boost its industrial and defense offerings and has been named the primary supplier for Volkswagen (ETR:VOWG_p) Group's next-generation traction inverter. These are the latest developments for ON Semiconductor.
InvestingPro Insights
While ON Semiconductor Corp's CEO Hassane El-Khoury recently sold a portion of his shares, it's important to consider the broader financial picture of the company. According to InvestingPro data, ON Semiconductor has a market capitalization of $29.57 billion and is trading at a P/E ratio of 15.31, which is relatively modest for the semiconductor industry.
InvestingPro Tips highlight that ON is a prominent player in the Semiconductors & Semiconductor Equipment industry, with a strong return over the last five years. This aligns with the company's position and El-Khoury's substantial remaining stake of 839,210 shares.
However, investors should note that analysts anticipate a sales decline in the current year, with revenue growth showing a negative 6.63% over the last twelve months. This could explain the recent insider selling activity, as executives may be reacting to near-term industry challenges.
Despite these headwinds, ON Semiconductor maintains a solid financial foundation. The company operates with a moderate level of debt, and its cash flows can sufficiently cover interest payments. This financial stability is crucial in an industry known for its cyclical nature and capital-intensive operations.
For investors seeking a more comprehensive analysis, InvestingPro offers 12 additional tips for ON Semiconductor, providing a deeper understanding of the company's prospects and challenges.
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