On Holding AG (NYSE:ONON) Short Interest Down 24.0% in April

Key Points

• Short interest down 24%: As of April 15 short interest totaled 11,141,358 shares, a 24.0% decline from March 31, representing about 5.6% of shares short and a short-interest ratio of 1.5 days.
• Major institutional buying: Morgan Stanley boosted its stake 40.9% to 24,119,871 shares (~$1.12B) and large new positions were reported by Platinum Paramount (~$525.8M) and Sinvest (~$390.4M), with institutions owning 36.39% of the company.
• Analysts see upside: ON carries a "Moderate Buy" consensus with a price target of $58.40 versus a trading price around $35.21 (market cap ~$22.5B), implying significant potential upside despite a high P/E (~49).

On Holding AG (NYSE:ONON - Get Free Report) was the recipient of a large drop in short interest in the month of April. As of April 15th, there was short interest totaling 11,141,358 shares, a drop of 24.0% from the March 31st total of 14,651,199 shares. Approximately 5.6% of the company's shares are short sold. Based on an average daily volume of 7,438,638 shares, the short-interest ratio is currently 1.5 days.

Insider Buying and Selling at ON

In related news, CEO Martin Hoffmann sold 4,150 shares of the stock in a transaction that occurred on Monday, April 27th. The shares were sold at an average price of $35.84, for a total transaction of $148,736.00. Following the completion of the transaction, the chief executive officer owned 1,385,099 shares of the company's stock, valued at approximately $49,641,948.16. This trade represents a 0.30% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 20,750 shares of company stock worth $745,838.

Institutional Trading of ON

Several hedge funds and other institutional investors have recently made changes to their positions in ONON. Platinum Paramount Investment LTD. purchased a new stake in shares of ON in the fourth quarter valued at about $525,784,000. Sinvest Investments II Ltd. purchased a new stake in shares of ON in the fourth quarter valued at about $390,432,000. Morgan Stanley boosted its holdings in shares of ON by 40.9% in the fourth quarter. Morgan Stanley now owns 24,119,871 shares of the company's stock valued at $1,121,092,000 after acquiring an additional 6,997,455 shares in the last quarter. FengHe Fund Management Pte. Ltd. purchased a new stake in shares of ON in the fourth quarter valued at about $142,425,000. Finally, Norges Bank purchased a new stake in shares of ON in the fourth quarter valued at about $128,826,000. Hedge funds and other institutional investors own 36.39% of the company's stock.

ON Stock Performance

ON stock traded down $0.22 during midday trading on Wednesday, hitting $35.21. 1,647,753 shares of the company's stock were exchanged, compared to its average volume of 6,015,805. The stock has a market cap of $22.47 billion, a price-to-earnings ratio of 48.92, a price-to-earnings-growth ratio of 0.73 and a beta of 2.23. The firm's 50 day simple moving average is $38.72 and its 200 day simple moving average is $42.32. The company has a debt-to-equity ratio of 0.27, a quick ratio of 2.13 and a current ratio of 2.71. ON has a 12-month low of $31.41 and a 12-month high of $61.29.

Analyst Ratings Changes

A number of equities research analysts have recently weighed in on the stock. UBS Group restated a "buy" rating on shares of ON in a report on Thursday, February 19th. Stifel Nicolaus set a $58.00 price objective on shares of ON in a report on Tuesday, March 3rd. Telsey Advisory Group reduced their price objective on shares of ON from $65.00 to $60.00 and set an "outperform" rating on the stock in a report on Wednesday, March 25th. Raymond James Financial upgraded shares of ON from an "outperform" rating to a "strong-buy" rating and set a $52.00 price target on the stock in a research note on Thursday, April 23rd. Finally, Williams Trading lowered shares of ON from a "buy" rating to a "hold" rating and cut their price target for the stock from $55.00 to $47.00 in a research note on Thursday, January 8th. Two research analysts have rated the stock with a Strong Buy rating, seventeen have issued a Buy rating, three have given a Hold rating and two have issued a Sell rating to the company's stock. Based on data from MarketBeat.com, ON presently has an average rating of "Moderate Buy" and a consensus price target of $58.40.

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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