ON Semiconductor Story

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ON -- USA Stock  

USD 20.08  0.23  1.13%

ON Semiconductor Calculated Tax Rate is quite stable at the moment as compared to the past year. The company's current value of Calculated Tax Rate is estimated at 24.46. PPandE Turnover is expected to rise to 2.67 this year, although the value of Average Assets will most likely fall to about 7.1 B. The fundamental goal of this short thesis is to break down our forecasting of ON Semiconductor for institutional investors. We will try to forecast ON Semiconductor outlook for September.
Published over a month ago
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Are ON Semiconductor (NASDAQ:ON) institutional investors starting to hold back?
The company has a beta of 0.0192. Let's try to break down what ON Semiconductor's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, ON Semiconductor will likely underperform. The beta indicator helps investors understand whether ON Semiconductor moves in the same direction as the rest of the market, and how volatile (i.e., risky) it is compared to the market (i.e., selected benchmark). In other words, if ON Semiconductor deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as ON Semiconductor. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.

Predictive Modules for ON Semiconductor

How important is ON Semiconductor's Liquidity

ON Semiconductor financial leverage refers to using borrowed capital as a funding source to finance ON Semiconductor ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. ON Semiconductor financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between ON Semiconductor's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for ON Semiconductor, but it might be worth checking our own buy vs. sell analysis

Sale by George Cave of 10000 shares of ON Semiconductor

Legal trades by ON Semiconductor insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
ON Semiconductor insider trading alert for sale of common by George Cave, EVP Gen Cnsl CCO & Sec, on 16th of September 2020. This event was filed by On Semiconductor Corp with SEC on 2020-09-16. Statement of changes in beneficial ownership - SEC Form 4. George Cave currently serves as chief compliance and ethics officer, chief risk officer, executive vp, general counsel and corporate secretary of ON Semiconductor [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

What is driving ON Semiconductor Investor Appetite?

The latest price rise of ON Semiconductor may encourage institutional investors to take a closer look at the company as it closed today at a share price of 20.45 on 10,260,767 in trading volume. The company management teams may have good odds in positioning the company resources to exploit market volatility in September. The stock standard deviation of daily returns for 30 days investing horizon is currently 3.54. The above-average risk is mostly attributed to market volatility and speculations regarding some of the upcoming earning calls from ON Semiconductor partners.

Returns Breakdown

Return on Investment7.24
Return on Assets0.0267
Return on Equity0.0667
Return Capital0.0821
Return on Sales0.0884

Our take on ON Semiconductor small slide

Latest Sortino Ratio is up to 0.09. Price may slide again. ON Semiconductor shows above-average downside volatility for the selected time horizon. We advise investors to inspect ON Semiconductor further and ensure that all market timing and asset allocation strategies are consistent with the estimation of ON Semiconductor future alpha.

The Bottom Line

Whereas some other firms in the semiconductors industry are either recovering or due for a correction, ON Semiconductor may not be as strong as the others in terms of longer-term growth potentials. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither buy nor exit any shares of ON Semiconductor at this time. The ON Semiconductor risk-reward trade off is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to ON Semiconductor.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of ON Semiconductor. Please refer to our Terms of Use for any information regarding our disclosure principles.

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