ON (NYSE:ONON) Stock Rating Lowered by Zacks Research

Key Points

• Zacks Research downgraded ON Holding from “hold” to “strong sell,” despite the broader analyst consensus remaining “Moderate Buy” with an average price target of $48.57.
• ON shares opened at $28.05, near their 12-month low of $27.56, after the company missed quarterly earnings and revenue expectations. Earnings were $0.35 per share versus the $0.42 consensus, while revenue reached $1.05 billion versus $1.09 billion expected.
• Company insiders showed confidence by purchasing 65,000 shares each, with CEO Caspar Coppetti and insider Olivier Bernhard buying at an average price of $30.67. Insiders collectively own 68.57% of the stock.

ON (NYSE:ONON - Get Free Report) was downgraded by equities researchers at Zacks Research from a "hold" rating to a "strong sell" rating in a report released on Thursday, Zacks reports.

A number of other equities analysts have also recently issued reports on the company. JPMorgan Chase & Co. assumed coverage on ON in a report on Thursday, July 2nd. They set an "overweight" rating and a $51.00 price target on the stock. The Goldman Sachs Group set a $42.00 price target on ON in a research report on Wednesday, August 12th. Sanford C. Bernstein reiterated an "outperform" rating and set a $62.00 price target on shares of ON in a report on Wednesday, August 12th. Evercore set a $40.00 target price on shares of ON in a research note on Wednesday, August 12th. Finally, Stifel Nicolaus cut their price target on ON from $60.00 to $41.00 and set a "buy" rating for the company in a research note on Wednesday, August 12th. One analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating, four have issued a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat, ON has an average rating of "Moderate Buy" and an average target price of $48.57.

ON Stock Down 1.1%

Shares of NYSE:ONON opened at $28.05 on Thursday. ON has a 12-month low of $27.56 and a 12-month high of $51.08. The company has a quick ratio of 2.25, a current ratio of 2.83 and a debt-to-equity ratio of 0.25. The firm has a market cap of $17.90 billion, a P/E ratio of 19.08, a P/E/G ratio of 0.58 and a beta of 2.08. The business has a fifty day simple moving average of $34.31 and a 200 day simple moving average of $36.93.

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 company had revenue of $1.05 billion during the quarter, compared to the consensus estimate of $1.09 billion. ON had a net margin of 12.09% and a return on equity of 22.92%. The business's revenue was up 13.5% on a year-over-year basis. During the same quarter in the previous year, the company earned ($0.09) earnings per share. Analysts predict that ON will post 1.47 earnings per share for the current year.

Insider Buying and Selling

In other ON news, insider Olivier Bernhard acquired 65,000 shares of the stock in a transaction dated Friday, August 14th. The stock was purchased at an average cost of $30.67 per share, for a total transaction of $1,993,550.00. Following the acquisition, the insider owned 5,228,184 shares in the company, valued at $160,348,403.28. The trade was a 1.26% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is available at this link. Also, CEO Caspar Coppetti acquired 65,000 shares of the business'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 purchase, the chief executive officer directly owned 2,440,855 shares in the company, valued at $74,861,022.85. This represents a 2.74% increase in their position. The disclosure for this purchase is available in the SEC filing. 68.57% of the stock is owned by company insiders.

Institutional Trading of ON

Several hedge funds have recently added to or reduced their stakes in ONON. Cullen Frost Bankers Inc. grew its stake in shares of ON by 639.7% in the fourth quarter. Cullen Frost Bankers Inc. now owns 540 shares of the company's stock worth $25,000 after purchasing an additional 467 shares during the last quarter. Caitlin John LLC bought a new position in ON during the 4th quarter valued at approximately $25,000. EverSource Wealth Advisors LLC lifted its holdings in 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 buying an additional 312 shares during the period. MidAtlantic Capital Management Inc. purchased a new stake in ON in the 4th quarter worth approximately $27,000. Finally, Caitong International Asset Management Co. Ltd grew its position in shares of ON by 555.1% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 701 shares of the company's stock worth $33,000 after buying an additional 594 shares during the last quarter. 36.39% of the stock is owned by institutional investors.

About ON

On Holding AG, commonly known as On, is a Swiss performance footwear and apparel company headquartered in Zurich. Founded in 2010, the company designs, develops and sells running shoes, performance apparel and accessories for road, trail and everyday use. On’s product philosophy centers on engineered cushioning and responsiveness intended to serve both serious athletes and lifestyle consumers.

On is best known for its proprietary midsole technology and distinctive sole architecture, marketed under names such as the Cloud family of shoes and related performance lines.

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