ON Semiconductor Corporation (ON) share ins rose nearly 4% during Tuesday’s session after KeyBanc, Piper Sandler, Needham, and Mizuho analysts replied favorably to the incoming CEO Hassane El-Khoury.
Key Takeaways
- ON Semiconductor shares rose about 4% during Tuesday’s sitting after several analysts favorably weighed in on its incoming CEO.
- The stock moved toward overbought territory following the provoke higher, but the intermediate- and long-term trend remains higher.
KeyBanc analyst John Vinh believes that El-Khoury’s until 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 attitude amid a broader recovery and its exposure to secular growth in auto, industrials, 5G infrastructure, and cloud computing.
At the same often, Needham analyst Rajvindra Gill maintained the firm’s Strong Buy rating on ON stock and raised its price target to $38.00 per share in, saying that El-Khoury successfully shifted Cypress Semiconductor’s strategic focus to higher-end markets while relieving or under-investing in non-core areas – moves that he could replicate at ON.
From a technical standpoint, the stock short out from upper trendline resistance to fresh highs following the bullish analyst calls. The relative strength pointer (RSI) moved further into overbought territory with a reading of 77.87, but the moving average convergence divergence (MACD) continued its bullish trend higher. These indicators suggest that the stock could see some consolidation before experiencing a more distant move higher.
Consolidation in technical analysis refers to an asset oscillating between a well-defined pattern of trading evens. Consolidation is generally interpreted as market indecisiveness, which ends when the asset’s price moves above or farther down the trading pattern.
Traders should watch for consolidation above trendline support levels at $31.00 over the arriving sessions. If the stock breaks down from those levels, traders could see a move toward trendline pillar at around $30.00 or Fibonacci support at $29.53. If the stock rebounds higher, traders could see a move to fresh superiors toward higher analyst price targets.
The Bottom Line
ON Semiconductor shares moved sharply higher during Tuesday’s meeting 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 transfer bring the same successes to ON. The stock moved into overbought territory following the move, but the long-term trend be lefts bullish.
The author holds no position in the stock(s) mentioned except through passively managed index funds.