ON Semiconductor (ON) Extends Rally on CEO Appointment


ON Semiconductor Corporation (ON) shares rose nearly 4% during Tuesday’s session after KeyBanc, Piper Sandler, Needham, and Mizuho analysts reacted favorably to the incoming CEO Hassane El-Khoury.

Key Takeaways

  • ON Semiconductor shares rose about 4% during Tuesday’s session after several analysts favorably weighed in on its incoming CEO.
  • The stock moved toward overbought territory following the move higher, but the intermediate- and long-term trend remains higher.

KeyBanc analyst John Vinh believes that El-Khoury’s prior success as CEO of Cypress Semiconductor makes him well suited to lead ON. In addition, the analyst notes that the company is already in a favorable position amid a broader recovery and its exposure to secular growth in auto, industrials, 5G infrastructure, and cloud computing.

At the same time, Needham analyst Rajvindra Gill maintained the firm’s Strong Buy rating on ON stock and raised its price target to $38.00 per share, saying that El-Khoury successfully shifted Cypress Semiconductor’s strategic focus to higher-end markets while divesting or under-investing in non-core areas – moves that he could replicate at ON.

TradingView.com

From a technical standpoint, the stock broke out from upper trendline resistance to fresh highs following the bullish analyst calls. The relative strength index (RSI) moved further into overbought territory with a reading of 77.87, but the moving average convergence divergence (MACD) resumed its bullish trend higher. These indicators suggest that the stock could see some consolidation before experiencing a further move higher.

Consolidation in technical analysis refers to an asset oscillating between a well-defined pattern of trading levels. Consolidation is generally interpreted as market indecisiveness, which ends when the asset’s price moves above or below the trading pattern.

Traders should watch for consolidation above trendline support levels at $31.00 over the coming sessions. If the stock breaks down from those levels, traders could see a move toward trendline support at around $30.00 or Fibonacci support at $29.53. If the stock rebounds higher, traders could see a move to fresh highs toward higher analyst price targets.

The Bottom Line

ON Semiconductor shares moved sharply higher during Tuesday’s session after analysts reacted to its new CEO appointment. Give El-Khoury’s success at Cypress Semiconductor in the past, the analysts are hopeful that he will bring the same successes to ON. The stock moved into overbought territory following the move, but the long-term trend remains bullish.

The author holds no position in the stock(s) mentioned except through passively managed index funds.



Source link

Recent Articles

European markets head for higher open as investors look to reverse negative slide

LONDON — European stocks are expected to open higher on Wednesday as markets look to reverse a negative slide in the previous trading...

This new gaming laptop is a strange rival for your Steam Deck dollars

If you’re having trouble getting your hands on a Steam Deck, Chinese tech company GPD has a rather oddball solution It’s called the GPD...

Samsung set for bumper Q2 despite smartphone slump

Samsung is expected to post its best second quarter results for four years, despite its lack of immunity from the smartphone industry’s current...

Project Cambria is Meta’s most important VR headset right now

Meta seemingly has high hopes for Project Cambria, with a leaked internal memo saying that the upcoming VR headset is one of Meta’s...

AMD FSR 2.0 mods start to flood in as gamers can’t wait for frame rate boosts

AMD’s FSR 2.0 (FidelityFX Super Resolution) is still relatively fresh to the gaming scene, and hardly in any games at all yet – but...

Related Stories

Leave A Reply

Please enter your comment!
Please enter your name here

Stay on op - Ge the daily news in your inbox

[tdn_block_newsletter_subscribe input_placeholder=”Email address” btn_text=”Subscribe” tds_newsletter2-image=”730″ tds_newsletter2-image_bg_color=”#c3ecff” tds_newsletter3-input_bar_display=”” tds_newsletter4-image=”731″ tds_newsletter4-image_bg_color=”#fffbcf” tds_newsletter4-btn_bg_color=”#f3b700″ tds_newsletter4-check_accent=”#f3b700″ tds_newsletter5-tdicon=”tdc-font-fa tdc-font-fa-envelope-o” tds_newsletter5-btn_bg_color=”#000000″ tds_newsletter5-btn_bg_color_hover=”#4db2ec” tds_newsletter5-check_accent=”#000000″ tds_newsletter6-input_bar_display=”row” tds_newsletter6-btn_bg_color=”#da1414″ tds_newsletter6-check_accent=”#da1414″ tds_newsletter7-image=”732″ tds_newsletter7-btn_bg_color=”#1c69ad” tds_newsletter7-check_accent=”#1c69ad” tds_newsletter7-f_title_font_size=”20″ tds_newsletter7-f_title_font_line_height=”28px” tds_newsletter8-input_bar_display=”row” tds_newsletter8-btn_bg_color=”#00649e” tds_newsletter8-btn_bg_color_hover=”#21709e” tds_newsletter8-check_accent=”#00649e” embedded_form_code=”YWN0aW9uJTNEJTIybGlzdC1tYW5hZ2UuY29tJTJGc3Vic2NyaWJlJTIy” tds_newsletter=”tds_newsletter1″ tds_newsletter3-all_border_width=”2″ tds_newsletter3-all_border_color=”#e6e6e6″ tdc_css=”eyJhbGwiOnsibWFyZ2luLWJvdHRvbSI6IjAiLCJib3JkZXItY29sb3IiOiIjZTZlNmU2IiwiZGlzcGxheSI6IiJ9fQ==” tds_newsletter1-btn_bg_color=”#0d42a2″ tds_newsletter1-f_btn_font_family=”406″ tds_newsletter1-f_btn_font_transform=”uppercase” tds_newsletter1-f_btn_font_weight=”800″ tds_newsletter1-f_btn_font_spacing=”1″ tds_newsletter1-f_input_font_line_height=”eyJhbGwiOiIzIiwicG9ydHJhaXQiOiIyLjYiLCJsYW5kc2NhcGUiOiIyLjgifQ==” tds_newsletter1-f_input_font_family=”406″ tds_newsletter1-f_input_font_size=”eyJhbGwiOiIxMyIsImxhbmRzY2FwZSI6IjEyIiwicG9ydHJhaXQiOiIxMSIsInBob25lIjoiMTMifQ==” tds_newsletter1-input_bg_color=”#fcfcfc” tds_newsletter1-input_border_size=”0″ tds_newsletter1-f_btn_font_size=”eyJsYW5kc2NhcGUiOiIxMiIsInBvcnRyYWl0IjoiMTEiLCJhbGwiOiIxMyJ9″ content_align_horizontal=”content-horiz-center”]