ON (NYSE:ONON) Raised to "Strong-Buy" at Zacks Research

Key Points

• Zacks Research upgraded ON from “hold” to “strong-buy,” adding to a generally positive analyst backdrop for the stock.
• Several other firms recently cut price targets on ON, but the overall consensus remains Moderate Buy with an average price target of $53.79.
• ON’s latest earnings beat expectations, with EPS of $0.46 versus $0.35 expected and revenue up 14.5% year over year to $1.04 billion.

ON (NYSE:ONON - Get Free Report) was upgraded by stock analysts at Zacks Research from a "hold" rating to a "strong-buy" rating in a note issued to investors on Tuesday,Zacks.com reports.

ONON has been the topic of several other research reports. Truist Financial decreased their target price on ON from $55.00 to $48.00 and set a "buy" rating on the stock in a report on Tuesday, May 12th. Barclays cut their price target on ON from $57.00 to $46.00 and set an "overweight" rating for the company in a report on Wednesday, May 13th. Needham & Company LLC reduced their price target on shares of ON from $52.00 to $45.00 and set a "buy" rating on the stock in a research report on Tuesday, May 12th. Telsey Advisory Group decreased their price objective on shares of ON from $60.00 to $51.00 and set an "outperform" rating on the stock in a report on Wednesday, May 13th. Finally, KeyCorp lowered their price objective on shares of ON from $58.00 to $43.00 and set an "overweight" rating for the company in a research report on Wednesday, May 13th. Three analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus price target of $53.79.

ON Stock Performance

NYSE ONON opened at $36.35 on Tuesday. The firm has a market cap of $23.20 billion, a price-to-earnings ratio of 39.09, a PEG ratio of 0.67 and a beta of 2.12. The company has a 50 day moving average of $37.25 and a 200-day moving average of $40.51. The company has a current ratio of 2.98, a quick ratio of 2.39 and a debt-to-equity ratio of 0.26. ON has a 1-year low of $31.41 and a 1-year high of $54.72.

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

Insiders Place Their Bets

In other news, CEO Martin Hoffmann sold 4,150 shares of the firm's stock in a transaction dated Monday, April 27th. The stock was sold at an average price of $35.84, for a total transaction of $148,736.00. Following the sale, the chief executive officer owned 1,385,099 shares of the company's stock, valued at $49,641,948.16. This trade represents a 0.30% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Olivier Bernhard acquired 60,000 shares of the business's stock in a transaction dated Thursday, May 14th. The shares were acquired at an average price of $36.63 per share, for a total transaction of $2,197,800.00. Following the acquisition, the insider directly owned 5,163,184 shares in the company, valued at $189,127,429.92. This represents a 1.18% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. In the last ninety days, insiders have bought 180,000 shares of company stock valued at $6,594,000 and have sold 12,450 shares valued at $441,352. Corporate insiders own 68.57% of the company's stock.

Institutional Trading of ON

Hedge funds have recently bought and sold shares 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 valued at $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 worth $517,000. Invesco Ltd. lifted its position in ON by 305.5% in the 2nd 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 in the last quarter. Cresset Asset Management LLC lifted its position in 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. boosted its stake in ON by 91.7% in the 2nd quarter. Daiwa Securities Group Inc. now owns 2,661 shares of the company's stock worth $139,000 after purchasing an additional 1,273 shares during the period. 36.39% of the stock is currently owned by institutional investors and hedge funds.

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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