Handelsbanken Fonder AB Invests $2.85 Million in On Holding AG $ONON

Key Points

• Handelsbanken Fonder AB initiated an On Holding position by purchasing 80,500 shares valued at approximately $2.85 million. Institutional investors and hedge funds collectively own 36.39% of ONON.
• Analyst sentiment remains broadly positive, with a consensus “Moderate Buy” rating and a $48.57 target price, although several firms recently lowered their targets following weaker-than-expected earnings and reduced guidance.
• On Holding reported quarterly EPS of $0.35 versus the $0.42 consensus and revenue of $1.05 billion versus $1.09 billion expected. Revenue still increased 13.5% year over year, but the stock traded near $32.23, below its 50-day and 200-day moving averages.

Handelsbanken Fonder AB bought a new position in shares of On Holding AG (NYSE:ONON - Free Report) in the 2nd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund bought 80,500 shares of the company's stock, valued at approximately $2,851,000.

A number of other institutional investors and hedge funds have also recently added to or reduced their stakes in ONON. Platinum Paramount Investment LTD. acquired a new stake in ON during the fourth quarter worth approximately $525,784,000. Sinvest Investments II Ltd. purchased a new position in shares of ON in the 4th quarter valued at $390,432,000. Morgan Stanley grew its position in shares of ON by 40.9% in the 4th quarter. Morgan Stanley now owns 24,119,871 shares of the company's stock valued at $1,121,092,000 after buying an additional 6,997,455 shares during the last quarter. FengHe Fund Management Pte. Ltd. purchased a new position in shares of ON in the 4th quarter valued at $142,425,000. Finally, Norges Bank acquired a new stake in ON during the 4th quarter worth $128,826,000. 36.39% of the stock is owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

A number of brokerages recently weighed in on ONON. Weiss Ratings reissued a "hold (c-)" rating on shares of ON in a research report on Friday, August 7th. Bank of America reiterated a "buy" rating on shares of ON in a research report on Wednesday. Needham & Company LLC reduced their target price on ON from $45.00 to $37.00 and set a "buy" rating for the company in a report on Tuesday, August 11th. Stifel Nicolaus decreased their target price on ON from $60.00 to $41.00 and set a "buy" rating for the company in a research report on Wednesday, August 12th. Finally, KeyCorp restated an "overweight" rating on shares of ON in a research note on Monday, August 10th. One investment analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $48.57.

Key ON News

Here are the key news stories impacting ON this week:

• Positive Sentiment: The stock’s rebound suggests some investors may view the August 11 selloff as an overreaction. On Holding’s underlying business still delivered year-over-year revenue growth, although the company’s revised guidance remains a concern. On Holding Just Had Its Worst Trading Day Ever
• Neutral Sentiment: Analyst commentary remains divided on On Holding and other consumer-cyclical companies, indicating uncertainty about the company’s growth trajectory, brand demand and expansion across sales channels. Analysts Offer Insights on Consumer Cyclical Companies Analysts Have Conflicting Sentiments
• Negative Sentiment: Telsey Advisory Group lowered its price target to $43, adding to investor concerns about valuation and slower-than-expected growth. Telsey Advisory Group Lowers ON Price Target
• Negative Sentiment: Robert W. Baird and UBS Group also reduced their expectations for ONON, reinforcing a broad analyst reassessment following the earnings report. Robert W. Baird Lowers Expectations UBS Lowers Expectations
• Negative Sentiment: BTIG issued a pessimistic forecast, while William Blair downgraded the stock to Market Perform and Needham issued a similarly cautious outlook. These actions could limit upside in the near term. BTIG Research Forecast William Blair Downgrade Needham Forecast
• Negative Sentiment: The key catalyst behind the analyst cuts was On Holding’s second-quarter earnings miss and trimmed guidance. Shares remain below their 50-day and 200-day moving averages, highlighting continued technical weakness. On Holding Global Brand Demand and Channel Expansion

ON Stock Up 0.0%

Shares of NYSE:ONON opened at $32.23 on Monday. The stock has a market cap of $20.57 billion, a P/E ratio of 21.93, a P/E/G ratio of 0.64 and a beta of 2.12. The firm has a fifty day moving average price of $36.82 and a 200 day moving average price of $38.50. The company has a debt-to-equity ratio of 0.25, a current ratio of 2.83 and a quick ratio of 2.25. On Holding AG has a 1-year low of $30.11 and a 1-year high of $51.08.

ON (NYSE:ONON - Get Free Report) last issued its quarterly earnings data on Tuesday, August 11th. The company reported $0.35 earnings per share (EPS) for the quarter, missing the consensus estimate 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 for the quarter, compared to analysts' expectations of $1.09 billion. During the same period in the previous year, the business posted ($0.09) earnings per share. The company's revenue for the quarter was up 13.5% on a year-over-year basis. Sell-side analysts predict that On Holding AG will post 1.51 EPS for the current year.

ON Company Profile

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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