ON Semiconductor Corp (NASDAQ:ON) shares are trading higher in extended trading Tuesday after the company announced a new buyback program.
- ON stock is trending. Get the complete picture here.
What To Know: ON Semi announced that its board authorized a share repurchase program of up to $6 billion over the next three years. The new buyback will commence after the company’s previous authorization expires at the end of the year.
ON Semi has repurchased $2.1 billion of its common stock over the past three years under the existing share repurchase program.
“Our increased share repurchase program reflects the confidence we have in our long-term strategy,” said Hassane El-Khoury, president and CEO of ON Semi.
“As we continue to execute with discipline, we are investing in differentiated technologies across power and sensing that will define the next generation of intelligent, energy-efficient systems. These investments position onsemi to capture growth opportunities across our key markets of automotive, industrial and AI data center and deliver sustainable value to our shareholders.”
Under the new buyback, ON Semi may repurchase shares from time to time through open market purchases, in privately negotiated transactions or by other means, including through the use of trading plans. The new authorization is set to expire on Dec. 31, 2028.
How To Buy ON Stock
By now, you're likely curious about how to participate in the market for ON Semi — be it to purchase shares, or even attempt to bet against the company.
Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy “fractional shares,” which allows you to own portions of stock without buying an entire share.
If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform or a broker who will allow you to “go short” a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading — either way, it allows you to profit from the share price decline.
ON Price Action: ON Semi shares were up 3.20% in after-hours Tuesday, trading at $47.02 at the time of publication, according to Benzinga Pro.
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