ON Semiconductor Corp. (ON) stock fell about 3% in Thursday's premarket session as investors pulled back from technology and semiconductor stocks.
Nasdaq futures dropped 1.29%, while S&P 500 futures fell 0.55%.
Broader market weakness appears to be driving ON Semiconductor's decline. Investors are reducing risk as technology-heavy index futures point sharply lower before the opening bell.
The weakness adds pressure to ON Semiconductor as the stock tries to recover from its midyear highs. Shares also remain below several key moving averages, which could limit near-term rebounds.
Technical Analysis
ON Semiconductor remains under pressure despite some signs of improving momentum.
The stock trades 8.4% below its 20-day simple moving average of $75.50. It is also 16.4% below its 50-day SMA of $82.78 and 12% below its 200-day SMA of $78.60.
However, momentum has started to improve. The MACD is above its signal line, while the histogram is positive. That suggests selling pressure may be easing.
The broader technical picture remains mixed. The 20-day SMA is below the 50-day SMA, which could limit near-term gains. However, the 50-day SMA remains above the 200-day SMA.
Key resistance sits near $74. Support is around $67.
Analyst Outlook
The stock has a Buy consensus rating and an average price forecast of $110.21.
Wells Fargo recently lowered its price forecast to $95 while maintaining an Overweight rating. Cantor Fitzgerald maintained a Neutral rating and $110 forecast. Citigroup also maintained Neutral while lowering its forecast to $98.
MarketDash Edge Rankings
The MarketDash Edge scorecard shows a relatively balanced setup.
Momentum scores 62.84, while Quality stands at 61.71. Value has a score of 53.98, while Growth trails at 43.62.
The readings suggest momentum and quality remain the stock's relative strengths. However, ON Semiconductor may need to reclaim the $74 area before the technical picture improves meaningfully.
Top ETF Exposure
ON Semiconductor has a 6.57% weighting in the First Trust NASDAQ Clean Edge Green Energy Index Fund (QCLN).
It also has a 1.60% weighting in the Innovator Gradient Tactical Rotation Strategy ETF (IGTR) and a 0.48% weighting in the Inspire Global Hope ETF (BLES).
Price Action
ON Stock Price Activity: ON Semiconductor shares fell 2.79% to $69 in Thursday's premarket trading, according to market data.
