The chip company attributed disappointing revenue forecasts to weak sales
ON Semiconductor Corp (NASDAQ:ON) shares are up 3.3% to trade at $67.26 at last check. The chip company delivered fourth quarter adjusted earnings that topped estimates, though revenue fell short of expectations while its two largest units sales continue to fall.
Analysts are chiming in after the event, with Benchmark downgrading ON to "hold" from "buy." No fewer than 10 other analysts lifted their price targets, however, including Morgan Stanley to $64 from $56, while Mizuho slashed its price target to $70 from $72.
Over the past couple months, ON has enjoyed newfound support at the $57.50 level, which rejected a rally in October. The stock earlier tapped a 13-month high of $67.69, and is now poised to snag its fourth win out of the last five trading sessions. Shares are also up 117% since April 8, which marked a four year low.
Options traders have been much more bullish than usual. The semiconductor name sports a 50-day call/put volume ratio of 3.02 on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) which stands higher than 94% of all other annual readings.