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SCOTTSDALE, AZ—Alan Campbell, a director at ON Semiconductor Corp (NASDAQ:ON), recently executed a significant stock sale. According to a recent SEC filing, Campbell sold 10,000 shares of ON Semiconductor’s common stock, netting approximately $432,257. The transaction comes as the semiconductor manufacturer, currently valued at $18.12 billion, trades near its 52-week low of $41.85.
The shares were sold on March 12 at a weighted average price of $43.23, with the transactions occurring at prices ranging from $42.73 to $43.53. Following this sale, Campbell retains ownership of 85,006 shares in the company. The stock has experienced significant pressure, declining 48% over the past year, though InvestingPro analysis suggests the stock is currently undervalued.
This transaction is part of Campbell’s ongoing management of his investment in ON Semiconductor, a leading player in the semiconductor industry. Despite market challenges, the company maintains a "GOOD" financial health score according to InvestingPro, which offers 16 additional valuable insights about ON Semiconductor’s current position and future prospects.
In other recent news, Onsemi has proposed an acquisition of Allegro (WA:ALEP) MicroSystems for $35.10 per share in cash. However, Allegro’s Board of Directors has deemed the offer inadequate after consulting with financial and legal advisors. This proposal is part of a broader trend of consolidation in the semiconductor industry, though Allegro’s board remains unconvinced of its adequacy. Meanwhile, Onsemi has announced a restructuring plan that will lead to a workforce reduction of approximately 2,400 employees to streamline operations and cut costs. The company anticipates incurring charges between $50 million and $60 million related to this restructuring, with expected annual savings of $105 million to $115 million once completed.
In related developments, Baird has lowered its price target for Onsemi from $75 to $48, maintaining a Neutral rating due to challenges like low utilization rates and market share sacrifices. Stifel has also reduced its price target for Onsemi from $60 to $52, citing near-term challenges in key sectors like Automotive and Industrial, which account for a significant portion of the company’s sales. Despite these challenges, both Baird and Stifel acknowledge Onsemi’s potential for long-term growth, though they remain cautious about the company’s near-term prospects. Investors are closely watching how Onsemi navigates these headwinds and the potential acquisition of Allegro MicroSystems.
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