ON Semiconductor stock is hit its lowest levels since January 2023
The shares of ON Semiconductor Corp (NASDAQ:ON) hit 52-week lows today, after a downgrade from Exane BNP Paribas to "underperform" from "neutral." The firm also adjusted its price target to $55, which is a hefty discount to current levels.
At last glance, the stock was down 0.9% at $62.38, earlier as low as $60.60, and trading at its lowest levels since January 2023. The chip sector has been struggling lately, in part due to restrictions from China, and ON is no exception. On track for its sixth-straight daily loss, the equity is down 25.3% since the start of the year.
Options traders are likely cheering today's drop, as puts have been much more popular than usual. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), ON's 10-day put/call volume ratio of 3.49 ranks higher than all other readings from the past year.
It's worth noting that short interest has also been building, and now represents 5.3% of the stock's available float. This, as well as the stock's "oversold" 14-day relative strength index (RSI) of 20.7 point to near-term tailwinds.