ON Semiconductor Corp (NASDAQ:ON) shares are trading higher by more than 7% during Friday’s premarket session. On Thursday, the company disclosed a revised merger deal with Synaptics Incorporated (NASDAQ:SYNA) after amending its June 25, 2026 merger agreement.
• ON Semiconductor stock is surging to new heights today. Why is ON stock surging?
Revised Deal Terms
Under the revised terms, On Semiconductor will acquire Synaptics for $123 per share in cash, valuing the transaction at approximately $5.7 billion, down from about $7 billion under the previous agreement.
The transaction will be funded through cash on hand and committed financing, with On Semiconductor securing fully committed debt financing from Morgan Stanley. The amended merger agreement does not make financing a closing condition.
As of July 3, ON Semiconductor had cash and cash equivalent of $3.5 billion.
The companies remain on track to close the deal by mid-2027, subject to Synaptics shareholder approval, required regulatory clearances and other customary conditions.
The U.S. Federal Trade Commission has already approved the transaction, while regulators in other jurisdictions continue to review it.
Immediate Adjusted EPS Accretion
ON Semiconductor now expects immediate adjusted EPS accretion following closing and has identified additional value-creation opportunities beyond the previously announced $200 million in annual run-rate synergies.
These include revenue synergies and insourcing part of Synaptics’ production, which are expected to be realized after the initial 18 months following closing and further strengthen the combined company’s long-term earnings and cash flow profile.
ON Technical Outlook: Trend, Momentum and Key Levels
With the stock at $85.96, On Semiconductor is trading 18.1% above its 20-day SMA ($73.22) and 12.7% above its 50-day SMA ($76.75), which illustrated that the near-term trend has improved even after the earlier drawdown. The bigger-picture repair job is still in progress because shares remain 6.7% below the 100-day SMA ($92.74), a level that often acts like "overhead supply" during rebounds.
Momentum looks like it’s turning up: MACD is above its signal line and the histogram is positive, which typically means downside pressure is easing and buyers are gaining traction versus the prior downswing. The catch is the trend backdrop still carries some damage from September’s Death Cross (the 50-day SMA falling below the 200-day SMA), so bulls usually want to see follow-through and consolidation rather than a one-day spike.
- Key Resistance: $102.50 — Nearby pivot area that can cap rebounds, especially with the 100-day SMA still above the market.
- Key Support: $75.50 — Prior buyer-defense zone that sits close to the 50-day/20-day moving-average area where dip-buyers may re-engage.
See More: Top Momentum Stocks
ON Earnings Preview and Analyst Price Targets
Looking further out, the next major catalyst for the stock arrives with the Nov. 2, 2026 (estimated) earnings report.
- EPS Estimate: 83 cents (Up from 63 cents year-over-year)
- Revenue Estimate: $1.67 billion (Up from $1.55 billion YoY)
- Valuation: P/E of 52.3x (Indicates premium valuation relative to peers)
Analyst Consensus & Recent Actions: The stock carries a Buy rating with an average price forecast of $105.05. Recent analyst moves include:
- Needham: Buy (Maintains target to $116 on Oct. 2)
- Seaport Global: Initiated with Buy (Target $100 on Sept. 23)
- Truist Securities: Hold (Lowers target to $75 on Sept. 18)
ETFs with the Biggest ON Semiconductor Exposure
- First Trust NASDAQ Clean Edge Green Energy Index Fund (NASDAQ:QCLN): 6.34% Weight
- Innovator Gradient Tactical Rotation Strategy ETF (NYSE:IGTR): 1.60% Weight
- Harbor Mid Cap Value ETF (NYSE:EPMV): 2.49% Weight
Significance: Because ON Semiconductor carries significant weight in these funds, any significant inflows or outflows for these ETFs will likely trigger automatic buying or selling of the stock.
ON Stock Moves Higher
ON Stock Price Activity: ON Semiconductor shares were up 6.46% at $85.25 at publication on Friday, according to Benzinga Pro data.
Photo via Shutterstock
Login to comment