ON Semiconductor Corp. ON saw a big move last session, as the company’s shares fell nearly 7% on the day. The move came on pretty good volume too with far more shares changing hands than in a normal session. This continues the recent trend of the company, as the stock is now trading within the volatile price range of $9.9 to $11.5 in the past one-month time frame.
On Dec 7, an unnamed company made an unsolicited proposal to acquire Fairchild Semiconductor International for $21.70 per share in cash, which outbid ON's offer to buy the company earlier this year for $20 per share in cash, which in turn negatively impacted ON’s stock price.
This slump shouldn’t be too much of a surprise to investors, as the supplier of broadband and power management integrated circuits has seen 1 negative revision in the past few weeks and its current year earnings consensus has moved lower over the last 30 days. This suggests there may be more trouble down the road. So make sure to keep an eye on this stock going forward to see if this recent slump will continue, as the earnings picture definitely suggests that this might be the case.
ON currently has a Zacks Rank #4 (Sell) while its Earnings ESP is 0.00%.
A better-ranked stock in the Semiconductor-Analog and Mixed sector is MaxLinear, Inc. MXL, which currently carries a Zacks Rank #1 (Strong Buy).
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