ON (NYSE:ONON) Given Buy Rating at Needham & Company LLC

Key Points

• Needham & Company reaffirmed its “buy” rating on ON Holding, setting a $37 price target—about 35.36% above the stock’s reported $27.33 price.
• Analyst sentiment remains positive overall, with ON carrying a consensus “Moderate Buy” rating and an average price target of $43.92, despite some firms lowering their targets.
• ON’s latest quarterly results missed expectations, reporting $0.35 in EPS versus $0.42 expected and $1.05 billion in revenue versus $1.09 billion forecast, though revenue increased 13.5% year over year.

ON (NYSE:ONON - Get Free Report)'s stock had its "buy" rating reissued by analysts at Needham & Company LLC in a report released on Friday, Benzinga reports. They presently have a $37.00 target price on the stock. Needham & Company LLC's price target would indicate a potential upside of 35.36% from the stock's current price.

Several other research firms have also recently issued reports on ONON. JPMorgan Chase & Co. began coverage on shares of ON in a research report on Thursday, July 2nd. They issued an "overweight" rating and a $51.00 target price on the stock. UBS Group dropped their price target on shares of ON from $83.00 to $73.00 and set a "buy" rating for the company in a research report on Wednesday, August 12th. Barclays cut their price target on shares of ON from $46.00 to $42.00 and set an "overweight" rating on the stock in a research note on Wednesday, August 12th. The Goldman Sachs Group set a $42.00 price objective on shares of ON in a research note on Wednesday, August 12th. Finally, Wall Street Zen downgraded ON from a "buy" rating to a "hold" rating in a report on Saturday, July 18th. Two research analysts have rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, five have given a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, ON currently has an average rating of "Moderate Buy" and a consensus price target of $43.92.

ON Stock Performance

ON stock opened at $27.33 on Friday. The stock has a fifty day moving average price of $32.68 and a 200 day moving average price of $35.59. ON has a 52 week low of $26.36 and a 52 week high of $51.08. The firm has a market capitalization of $17.44 billion, a P/E ratio of 18.59, a PEG ratio of 0.54 and a beta of 2.08. The company has a current ratio of 2.83, a quick ratio of 2.25 and a debt-to-equity ratio of 0.25.

ON (NYSE:ONON - Get Free Report) last issued its quarterly earnings results on Tuesday, August 11th. The company reported $0.35 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.42 by ($0.07). ON had a return on equity of 22.92% and a net margin of 12.09%.The business had revenue of $1.05 billion during the quarter, compared to analyst estimates of $1.09 billion. During the same period in the previous year, the business posted ($0.09) earnings per share. The firm's quarterly revenue was up 13.5% on a year-over-year basis. Equities research analysts anticipate that ON will post 1.49 earnings per share for the current year.

Insider Buying and Selling

In other ON news, insider Olivier Bernhard purchased 65,000 shares of ON stock in a transaction on Friday, August 14th. The shares were purchased at an average cost of $30.67 per share, with a total value of $1,993,550.00. Following the completion of the transaction, the insider directly owned 5,228,184 shares in the company, valued at approximately $160,348,403.28. This represents a 1.26% increase in their position. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Caspar Coppetti acquired 65,000 shares of the company's stock in a transaction dated Friday, August 14th. The stock was acquired at an average cost of $30.67 per share, with a total value of $1,993,550.00. Following the transaction, the chief executive officer directly owned 2,440,855 shares of the company's stock, valued at approximately $74,861,022.85. This represents a 2.74% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Insiders own 68.57% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of ONON. Cullen Frost Bankers Inc. raised its stake in ON by 639.7% during the fourth quarter. Cullen Frost Bankers Inc. now owns 540 shares of the company's stock valued at $25,000 after buying an additional 467 shares in the last quarter. EverSource Wealth Advisors LLC grew its position in shares of ON by 69.6% in the 1st quarter. EverSource Wealth Advisors LLC now owns 760 shares of the company's stock worth $26,000 after acquiring an additional 312 shares in the last quarter. MidAtlantic Capital Management Inc. bought a new stake in shares of ON in the 4th quarter valued at approximately $27,000. Ascentis Independent Advisors bought a new stake in shares of ON in the 1st quarter valued at approximately $34,000. Finally, TD Private Client Wealth LLC raised its position in shares of ON by 109.9% during the 4th quarter. TD Private Client Wealth LLC now owns 804 shares of the company's stock valued at $37,000 after acquiring an additional 421 shares in the last quarter. Institutional investors and hedge funds own 36.39% of the company's stock.

About ON

On Holding AG, known as On, is a Swiss sportswear company that develops and sells performance footwear, apparel and accessories. The company is particularly recognized for its running shoes, which incorporate proprietary technologies such as CloudTec cushioning and Speedboard components designed to support comfort, responsiveness and energy return.

On serves athletes and consumers across categories including running, outdoor activities, training and everyday performance. Its products are sold through the company's direct-to-consumer channels, including its website and branded retail stores, as well as through a network of wholesale partners in markets around the world.

On was founded in 2010 in Switzerland by Olivier Bernhard, David Allemann and Caspar Coppetti.

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