ON Semiconductor (ON) Strong On High Relative Volume Today
Trade-Ideas LLC identified
(
) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified ON Semiconductor as such a stock due to the following factors:
- ON has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $46.1 million.
- ON has traded 907,062 shares today.
- ON is trading at 3.77 times the normal volume for the stock at this time of day.
- ON is trading at a new high 5.08% above yesterday's close.
'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.
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More details on ON:
ON Semiconductor Corporation manufactures and sells semiconductor components for various electronic devices worldwide. ON has a PE ratio of 19. Currently there are 8 analysts that rate ON Semiconductor a buy, 1 analyst rates it a sell, and 3 rate it a hold.
The average volume for ON Semiconductor has been 4.2 million shares per day over the past 30 days. ON Semiconductor has a market cap of $3.6 billion and is part of the technology sector and electronics industry. The stock has a beta of 2.02 and a short float of 2.8% with 2.18 days to cover. Shares are down 13.6% year-to-date as of the close of trading on Wednesday.
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Analysis:
rates ON Semiconductor as a
. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, good cash flow from operations, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.
Highlights from the ratings report include:
- Net operating cash flow has increased to $114.90 million or 37.60% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 3.20%.
- ON SEMICONDUCTOR CORP's earnings per share declined by 30.8% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, ON SEMICONDUCTOR CORP increased its bottom line by earning $0.49 versus $0.43 in the prior year. This year, the market expects an improvement in earnings ($0.85 versus $0.49).
- 40.69% is the gross profit margin for ON SEMICONDUCTOR CORP which we consider to be strong. Regardless of ON's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 4.40% trails the industry average.
- ON, with its decline in revenue, underperformed when compared the industry average of 5.8%. Since the same quarter one year prior, revenues slightly dropped by 6.2%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
- You can view the full ON Semiconductor Ratings Report.
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