ON (NYSE:ONON) Raised to Hold at BMO Capital Markets

Key Points

• BMO Capital Markets upgraded ON to “Hold,” while the broader analyst consensus remains “Moderate Buy” with an average price target of $45.43.
• ON opened at $26.83, near its 12-month low of $26.60, after reporting quarterly EPS of $0.35 and revenue of $1.05 billion—both below analyst expectations—despite 13.5% year-over-year revenue growth.
• CEO Caspar Coppetti and insider Olivier Bernhard each bought 65,000 shares at $30.67 per share; corporate insiders collectively own 68.57% of the company.

ON (NYSE:ONON - Get Free Report) was upgraded by stock analysts at BMO Capital Markets to a "hold" rating in a report released on Tuesday, Zacks reports.

Other analysts also recently issued research reports about the company. JPMorgan Chase & Co. initiated coverage on ON in a research note on Thursday, July 2nd. They issued an "overweight" rating and a $51.00 price objective on the stock. KeyCorp reaffirmed an "overweight" rating on shares of ON in a research note on Monday, August 10th. UBS Group lowered their target price on ON from $83.00 to $73.00 and set a "buy" rating on the stock in a report on Wednesday, August 12th. Jefferies Financial Group set a $20.00 price target on shares of ON in a research report on Tuesday, August 11th. Finally, Truist Financial cut their price target on shares of ON from $48.00 to $40.00 and set a "buy" rating for the company in a report on Tuesday, August 11th. One research analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, five have issued a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat, ON has an average rating of "Moderate Buy" and a consensus price target of $45.43.

ON Trading Down 0.0%

ON stock opened at $26.83 on Tuesday. ON has a 12-month low of $26.60 and a 12-month high of $51.08. The company has a debt-to-equity ratio of 0.25, a current ratio of 2.83 and a quick ratio of 2.25. The stock has a market capitalization of $17.12 billion, a PE ratio of 18.25, a price-to-earnings-growth ratio of 0.54 and a beta of 2.08. The firm has a 50 day simple moving average of $33.62 and a 200-day simple moving average of $36.29.

ON (NYSE:ONON - Get Free Report) last announced its earnings results on Tuesday, August 11th. The company reported $0.35 EPS for the quarter, missing the consensus estimate of $0.42 by ($0.07). The firm had revenue of $1.05 billion for the quarter, compared to the consensus estimate of $1.09 billion. ON had a return on equity of 22.92% and a net margin of 12.09%.ON's revenue for the quarter was up 13.5% on a year-over-year basis. During the same period in the previous year, the firm earned ($0.09) EPS. As a group, equities research analysts expect that ON will post 1.47 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, CEO Caspar Coppetti acquired 65,000 shares of ON 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 purchase, the chief executive officer directly owned 2,440,855 shares in the company, valued at $74,861,022.85. The trade was a 2.74% increase in their position. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Olivier Bernhard bought 65,000 shares of the firm's stock in a transaction that occurred on Friday, August 14th. The stock was bought at an average price of $30.67 per share, for a total transaction of $1,993,550.00. Following the completion of the acquisition, the insider directly owned 5,228,184 shares in the company, valued at approximately $160,348,403.28. The trade was a 1.26% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. 68.57% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On ON

Hedge funds and other institutional investors have recently modified their holdings of the stock. Bison Wealth LLC boosted its holdings in shares of ON by 35.7% in the fourth quarter. Bison Wealth LLC now owns 9,291 shares of the company's stock worth $509,000 after buying an additional 2,442 shares during the period. Prudential Financial Inc. acquired a new stake in shares of ON during the second quarter valued at approximately $517,000. Invesco Ltd. raised its holdings in shares of ON by 305.5% during the second quarter. Invesco Ltd. now owns 157,281 shares of the company's stock valued at $8,186,000 after acquiring an additional 118,498 shares during the period. Cresset Asset Management LLC lifted its position in shares of ON by 13.5% in the 2nd quarter. Cresset Asset Management LLC now owns 7,232 shares of the company's stock valued at $376,000 after acquiring an additional 860 shares in the last quarter. Finally, Daiwa Securities Group Inc. lifted its position in shares of ON by 91.7% in the 2nd quarter. Daiwa Securities Group Inc. now owns 2,661 shares of the company's stock valued at $139,000 after acquiring an additional 1,273 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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