What's Going On With On Semiconductor Stock?

ON Semiconductor Corporation ON shares are trading higher Wednesday after Texas Instruments, Inc. TXN reported better-than-expected first-quarter results. 

The Details:

Texas Instruments reported quarterly earnings of $1.20 per share, beating estimates of $1.08 per share, and revenue of $3.66 billion, which beat the consensus estimate of $3.611 billion. 

On Semiconductor is set to report its first-quarter results on April 29 before the bell. According to estimates from Benzinga Pro, analysts expect the company to report earnings of $1.04 per share and quarterly revenue of $1.851 billion. 

Several analysts have recently lowered their price targets for On, including Morgan Stanley analyst Joseph Moore who lowered the price target from $80 to $70 and Wells Fargo analyst Gary Mobley who lowered it from $110 to $95.

Exane BNP Paribas downgraded On Semiconductor from Neutral to Underperform and announced a $55 price target last week. 

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ON Stock Prediction 2024:

Equity research analysts on and off Wall Street typically use earnings growth and fundamental research as a form of valuation and forecasting. But many in trading turn to technical analysis as a way to form predictive models for share price trajectory.

Some investors look to trends to help forecast where they believe a stock could trade at a certain point in the future. Looking at On Semiconductor, an investor could make an assessment about a stock's long term prospects using a moving average and trend line. If they believe a stock will remain above the moving average, which many believe is a bullish signal, they can extrapolate that trend into the future using a trend line. For On Semiconductor, the 200-day moving average sits at $82.36, according to Benzinga Pro, which is above the current price of $64.75. For more on charts and trend lines, see a description here.

Traders believe that when a stock is above its moving average, it is a generally bullish signal, and when it crosses below, it is a more negative signal. Investors could use trend lines to make an educated guess about where a stock could trade at a later date if conditions remain stable.

ON Price Action: According to Benzinga Pro, On Semiconductor shares are up 5.17% at $64.87 at the time of publication Wednesday.

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