Digging Deeper Into the Fundamentals of On Semiconductor (ON)

Solid fundamentals indicate that a business has a well-oiled financial structure or framework, while those companies with weak fundamentals could have problems in the areas of debt obligation management, organizational management, or cost control.  Businesses with strong fundamentals will probably be able to manage negative issues than ones with shakey fundamentals.  Strong fundamentals indicates less risk for investors.  Fundamentals include information that add to economic health and the financial valuation of a given company.  Both investors and analysts alike review a company’s fundamentals in order to gain an opinion as to whether the commodity should be considered a worthy investment.  Information such as liabilities, growth, revenue, assets, and earnings are considered to be their fundamentals.

On Semiconductor (ON)’s previous close was $15.18.  Previous close refers to the prior day’s value of a given security.  When comparing a security’s closing price from one day to the next, investors can see how the price has changed over time.

On Semiconductor (ON)’s shares opened at $15.29, hitting a high of $15.46 and bottoming out at $15.26.  Change is the difference between the current price and the previous day’s settlement price.  Change is the basis for describing and measuring data over a specific period of time.  A negative change indicates declining performance while a positive change indicates an improved performance.  Interpretation change can be left to the analyst.

The formula for finding change is by subtracting the previous time period from the most recent time period.   If a company trades at $20 at the end of the first quarter and $40 at the end of the second quarter, the change $40 minus $20, or $20.  Here we find the change to be positive, but by how much?  The price went up from $20 to $40, so it doubled.  In this example, the company’s stock price grew 100% in the first quarter.  Investors like change.  Change allows investors to make a profit.  In volatile markets, there are many opportunities for investors to make up for losses.  Prices are based on the change in price of assets.  Value is based on changing prices.  “Calls” make a bet that the price of the asset will increase, while “puts” bet that the price of the asset will go decrease.  More volatility means that there is more likely a chance for investors to make a profit.  Their change was $0.24 and total volume was 4645600.

Moving average convergence divergence (MACD) is a trend-following momentum indicator that illustrates the relationship between two moving averages.  MACD is calculated by subtracting the 26-day exponential moving average (EMA) from the 12-day EMA.  A “signal line”, the 9-day EMA of the MACD, can then plotted on top of the MACD, acting as a trigger for buy and sell signals.  There are three methods used to interpret the MACD.  The first is “Crossovers”.  When the MACD falls below the signal line, it is bearish, indicating that it might be time to sell.  When the MACD shoots above the signal line, the indicator is bullish, indicating that the price of the commodity is probably going to experience upward momentum.  The second method is “Divergence”, meaning that when the price of the security diverges from the MACD, it signals the end of the current trend.  Lastly, there is the “Dramatic Rise”.  When the MACD experiences a dramatic rise, the signal indicates overbought status and will probably soon return to more normal levels.

Standard Deviation is a measure of the current average variability of return.  A move of (plus or minus) 1 std deviation means a 33% odds for a major price move, whereas a move of (plus or minus) 3 std deviations means a 1% odds for a major price move. On Semiconductor (ON)’s Standard Deviation is +0.64.

Weighted Alpha is a measure of how much a stock has risen or fallen over a one-year period with a higher weighting for recent price activity. On Semiconductor (ON)’s Weighted Alpha is +66.00.

A 52-week high/low is the highest and lowest share price that a stock has traded at during the previous year.  Investors and traders consider the 52-week high or low as a crucial factor in determining a given stock’s current value while also predicting future price movements.  When a commodity trades within its 52-week price range (the range that exists between the 52-week low and the 52-week high), investors usually show more interest as the price nears either the high or the low.

One of the more popular strategies used by traders is to buy when the price eclipses its 52-week high or to sell when the price drops below its 52-week low.  The rationale involved with this strategy says that if the price breaks out either above or below the 52-week range, there is momentum enough to continue the price fluctuation in a positive direction. On Semiconductor (ON)’s high over the last year was $15.46 while its low was $15.26.

The 9-day difference between a short-term and long-term moving average.  A value above 0 indicates a bullish signal while a value below 0 interprets as a bearish signal. On Semiconductor (ON)’s 9-Day MACD is 0.06 and its 14-Day MACD is 0.42. On Semiconductor (ON)’s TrendSpotter Opinion, the signal from Trendspotter, a Barchart trend analysis system that uses wave theory, market momentum & volatility in an attempt to find a general trend, is Buy.

Disclaimer: The views, opinions, and information expressed in this article are those of the authors and do not necessarily reflect the official policy or position of any company stakeholders, financial professionals, or analysts. Examples of analysis performed within this article are only examples. They should not be utilized to make stock portfolio or financial decisions as they are based only on limited and open source information. Assumptions made within the analysis are not reflective of the position of any analysts or financial professionals.