Needham & Company LLC Cuts ON (NYSE:ONON) Price Target to $37.00

Key Points

• Needham & Company cut ON Holding’s price target from $45 to $37 while maintaining a “buy” rating, implying 17.52% upside from the previous close.
• ON shares fell $7.30 to $31.48 in Tuesday trading, near the company’s $30.11 one-year low. Despite mixed analyst revisions, the stock carries a consensus “Moderate Buy” rating and average price target of $53.42.
• Recent fundamentals were stronger than expected: ON reported quarterly EPS of $0.46 versus a $0.35 consensus estimate, while revenue rose 14.5% year over year to $1.04 billion. Insiders also purchased 180,000 shares worth approximately $6.6 million over the past three months.

ON (NYSE:ONON - Get Free Report) had its price objective lowered by equities researchers at Needham & Company LLC from $45.00 to $37.00 in a report released on Tuesday,Benzinga reports. The firm presently has a "buy" rating on the stock. Needham & Company LLC's price target points to a potential upside of 17.52% from the stock's previous close.

A number of other research analysts have also weighed in on the stock. Wall Street Zen lowered shares of ON from a "buy" rating to a "hold" rating in a research note on Saturday, July 18th. Barclays reduced their target price on ON from $57.00 to $46.00 and set an "overweight" rating for the company in a report on Wednesday, May 13th. Zacks Research lowered ON from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, August 5th. Guggenheim reiterated a "buy" rating and set a $51.00 price target on shares of ON in a research report on Wednesday, May 13th. Finally, Raymond James Financial raised ON from an "outperform" rating to a "strong-buy" rating and set a $52.00 price objective for the company in a research note on Thursday, April 23rd. Two equities research analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $53.42.

ON Price Performance

NYSE ONON traded down $7.30 during trading hours on Tuesday, reaching $31.48. The company's stock had a trading volume of 19,782,720 shares, compared to its average volume of 5,837,012. The firm has a market capitalization of $20.09 billion, a price-to-earnings ratio of 33.89, a P/E/G ratio of 0.69 and a beta of 2.12. The company's 50-day moving average is $37.31 and its two-hundred day moving average is $38.91. The company has a debt-to-equity ratio of 0.26, a current ratio of 2.98 and a quick ratio of 2.39. ON has a 1-year low of $30.11 and a 1-year high of $52.20.

ON (NYSE:ONON - Get Free Report) last issued its quarterly earnings data on Tuesday, May 12th. The company reported $0.46 EPS for the quarter, beating the consensus estimate of $0.35 by $0.11. The company had revenue of $1.04 billion for the quarter, compared to analyst estimates of $1.03 billion. ON had a return on equity of 15.72% and a net margin of 7.92%.ON's quarterly revenue was up 14.5% compared to the same quarter last year. During the same period last year, the company earned $0.21 earnings per share. On average, equities analysts predict that ON will post 1.52 EPS for the current year.

Insider Buying and Selling at ON

In related news, CEO Caspar Felix Coppetti bought 60,000 shares of the company's stock in a transaction on Thursday, May 14th. The stock was bought at an average cost of $36.64 per share, for a total transaction of $2,198,400.00. Following the acquisition, the chief executive officer directly owned 2,375,855 shares in the company, valued at $87,051,327.20. This represents a 2.59% increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, insider Olivier Bernhard purchased 60,000 shares of ON stock in a transaction dated Thursday, May 14th. The shares were bought at an average price of $36.63 per share, for a total transaction of $2,197,800.00. Following the acquisition, the insider owned 5,163,184 shares in the company, valued at approximately $189,127,429.92. This trade represents a 1.18% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Insiders purchased a total of 180,000 shares of company stock worth $6,594,000 in the last three months.

Hedge Funds Weigh In On ON

Several institutional investors and hedge funds have recently bought and sold shares of the company. Caitlin John LLC acquired a new stake in shares of ON during the 4th quarter worth approximately $25,000. Cullen Frost Bankers Inc. increased its stake in ON by 639.7% during the fourth quarter. Cullen Frost Bankers Inc. now owns 540 shares of the company's stock worth $25,000 after acquiring an additional 467 shares during the last quarter. MidAtlantic Capital Management Inc. purchased a new stake in ON in the fourth quarter valued at $27,000. Caitong International Asset Management Co. Ltd raised its position in ON by 555.1% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 701 shares of the company's stock valued at $33,000 after purchasing an additional 594 shares during the period. Finally, EverSource Wealth Advisors LLC lifted its stake in shares of ON by 69.6% in the 1st quarter. EverSource Wealth Advisors LLC now owns 760 shares of the company's stock valued at $26,000 after purchasing an additional 312 shares during the last quarter. 36.39% of the stock is currently owned by institutional investors and hedge funds.

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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