On June 7, 2023, Hassane El-khoury, CEO and President of ON Semiconductor Corp (ON, Financial), sold 22,500 shares of the company's stock. This move comes as part of a series of transactions made by El-khoury over the past year, during which he has sold a total of 57,500 shares and purchased none.
ON Semiconductor Corp is a leading provider of semiconductor-based solutions, offering a comprehensive portfolio of energy-efficient power management, analog, sensors, logic, timing, connectivity, discrete, SoC, and custom devices. The company's products help engineers solve their unique design challenges in automotive, communications, computing, consumer, industrial, medical, aerospace, and defense applications.
Insider Trends
Over the past year, there have been no insider buys for ON Semiconductor Corp, while there have been nine insider sells. This trend suggests that insiders may be less optimistic about the company's future prospects or believe that the stock is currently overvalued.
Valuation
On the day of Hassane El-khoury's recent sale, shares of ON Semiconductor Corp were trading at $90.01 apiece, giving the stock a market cap of $38.45 billion. The price-earnings ratio is 21.71, which is lower than the industry median of 23.92 and lower than the company's historical median price-earnings ratio.
With a price of $90.01 and a GuruFocus Value of $63.46, ON Semiconductor Corp has a price-to-GF-Value ratio of 1.42. This means the stock is significantly overvalued based on its GF Value.
The GF Value is an intrinsic value estimate developed by GuruFocus that is calculated based on the following three factors:
- Historical multiples (price-earnings ratio, price-sales ratio, price-book ratio, and price-to-free cash flow) that the stock has traded at.
- A GuruFocus adjustment factor based on the company's past returns and growth.
- Future estimates of business performance from Morningstar analysts.
In conclusion, the recent sale of 22,500 shares by CEO and President Hassane El-khoury may signal a lack of confidence in the company's future prospects or an indication that the stock is currently overvalued. Investors should keep an eye on insider transactions and the company's valuation metrics to make informed decisions about their investments in ON Semiconductor Corp.
