ON Semiconductor Corporation (NASDAQ: ON) shares fell on Thursday February 2 on lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a downgraded rating.
Meanwhile, The Dow Jones Industrial Average DJIA, -0.10% fell 34 points, or 0.2%, to 19,858. The S&P 500 SPX, -0.11% lost 4 points to 2,276, a drop of 0.2%. The Nasdaq Composite Index COMP, -0.05% slid 16 points, or 0.3%, to 5,626. Among the most actively traded Nasdaq stocks was Facebook Inc FB, +0.31% which fell 0.7% a day after it reported its quarterly results.
Shares of ON Semiconductor Corporation (NASDAQ: ON) were downgraded by analysts at Vetr Inc. in a note to their investors today. With a rating of Sell on the stock, the company has a 52-week high of $14.00. As a means of comparison, a number of other analysts have issued reports on the stock in recent days, and ON Semiconductor Corporation has earned a consensus one-year price target of $14.76, higher than the opening price of $13.56. Downgrades happen when analysts believe that the future prospects for the security have diminished from the initial recommendation, usually because of a material and major digression in the company’s operations, future direction or industry.
Yesterday ON Semiconductor Corporation (NASDAQ: ON) shares last traded at $13.56, a dip of $0.15 compared to the previous closing price. Opening at $13.56, they fluctuated from $13.33 and $13.58 throughout the day.
ON Semiconductor Corporation (NASDAQ: ON) currently has a market cap of 5.65B.
ON Semiconductor Corporation (NASDAQ: ON) Average Daily Trading Volume
The stock’s average daily volume is 7,049,510 shares out of a total float 410,512,000 and some 322,685 shares traded hands yesterday, 56 percent below the norm. lower than normal. Look for trading volume to pick up in the coming days as momentum traders often use upticks in trading volume to identify heavy volume accumulation or distribution by institutional investors.
However, a single day of heavy buy side trading is not enough to assert a trend. As such, market traders will continue to watch for institutional sponsorship as a signal that financial institutions are moving forward.
Institutional sponsorship commonly refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These instituitional investors have substantial teams of analysts that investigate thousands of stocks. Thus, watching their interests is a good way to ensure you are buying the right stocks.
ON Semiconductor Corporation (NASDAQ: ON) Moving Averages
A moving average can also act as support or resistance. In an uptrend a 50-day, 100-day or 200-day moving average may act as a support level, as shown in the figure below.
This is because the average acts like a floor (support), so the price bounces up off of it.
In a downtrend a moving average may act as resistance; like a ceiling, the price hits it and then starts to drop again.
By identifying trends, moving averages allow traders to make those trends work in their favor and increase the number of winning trades.
With that in mind, ON Semiconductor Corporation (NASDAQ: ON) now has a 50-day MA of $13.20 and 200-day MA of $11.63. It has traded in a 52-week range between $6.97 – 14.000 and today’s last price is 3.18%% lower than the 52 week high of $14.00.
Earnings growth is an important factor to look at when buying stocks and investors watch for companies that have grown their earnings at least 25% or more for the past 3 years.
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