ON (NYSE:ONON) Rating Lowered to Hold at Wall Street Zen

Key Points

• Wall Street Zen downgraded ON from a “buy” rating to a “hold” rating, adding to a mixed but still mostly positive analyst backdrop.
• Despite the downgrade, the broader analyst consensus remains “Moderate Buy” with an average price target of $53.79; recent calls from Raymond James, Guggenheim, JPMorgan, Needham, and Truist were generally bullish.
• ON reported strong quarterly results, including EPS of $0.46 versus $0.35 expected and revenue of $1.04 billion, up 14.5% year over year. The stock opened at $37.22, well below its 52-week high of $54.37.

ON (NYSE:ONON - Get Free Report) was downgraded by Wall Street Zen from a "buy" rating to a "hold" rating in a research note issued to investors on Saturday.

A number of other equities research analysts also recently commented on ONON. Raymond James Financial raised shares of ON from an "outperform" rating to a "strong-buy" rating and set a $52.00 target price for the company in a research report on Thursday, April 23rd. Guggenheim reaffirmed a "buy" rating and issued a $51.00 price objective on shares of ON in a report on Wednesday, May 13th. JPMorgan Chase & Co. assumed coverage on ON in a research report on Thursday, July 2nd. They set an "overweight" rating and a $51.00 price objective for the company. Needham & Company LLC dropped their target price on ON from $52.00 to $45.00 and set a "buy" rating on the stock in a research report on Tuesday, May 12th. Finally, Truist Financial reduced their price target on shares of ON from $55.00 to $48.00 and set a "buy" rating for the company in a research report on Tuesday, May 12th. Three equities research analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average price target of $53.79.

ON Price Performance

NYSE ONON opened at $37.22 on Friday. ON has a one year low of $31.41 and a one year high of $54.37. The stock has a 50-day moving average of $37.57 and a 200 day moving average of $40.09. The company has a debt-to-equity ratio of 0.26, a quick ratio of 2.39 and a current ratio of 2.98. The company has a market capitalization of $23.75 billion, a price-to-earnings ratio of 40.02, a PEG ratio of 0.71 and a beta of 2.12.

ON (NYSE:ONON - Get Free Report) last announced its quarterly earnings results on Tuesday, May 12th. The company reported $0.46 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.35 by $0.11. ON had a net margin of 7.92% and a return on equity of 15.72%. The firm had revenue of $1.04 billion for the quarter, compared to the consensus estimate of $1.03 billion. During the same quarter last year, the firm posted $0.21 EPS. The business's quarterly revenue was up 14.5% compared to the same quarter last year. On average, sell-side analysts forecast that ON will post 1.51 EPS for the current year.

Insider Buying and Selling

In other news, CEO Martin Hoffmann sold 4,150 shares of ON 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 transaction, the chief executive officer directly owned 1,385,099 shares of the company's stock, valued at $49,641,948.16. The trade was a 0.30% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Olivier Bernhard bought 60,000 shares of ON stock in a transaction that occurred on Thursday, May 14th. The stock was purchased at an average cost of $36.63 per share, with a total value of $2,197,800.00. Following the completion of 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 position. The SEC filing for this purchase provides additional information. Insiders bought 180,000 shares of company stock worth $6,594,000 over the last ninety days. 68.57% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Bison Wealth LLC grew 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 purchasing an additional 2,442 shares in the last quarter. Prudential Financial Inc. bought a new stake in ON in the second quarter worth $517,000. Invesco Ltd. raised its stake in ON by 305.5% during the second quarter. Invesco Ltd. now owns 157,281 shares of the company's stock valued at $8,186,000 after purchasing an additional 118,498 shares in the last quarter. Cresset Asset Management LLC lifted its position in ON by 13.5% during the second quarter. Cresset Asset Management LLC now owns 7,232 shares of the company's stock valued at $376,000 after purchasing an additional 860 shares during the last quarter. Finally, Daiwa Securities Group Inc. lifted its position in ON by 91.7% during the second quarter. Daiwa Securities Group Inc. now owns 2,661 shares of the company's stock valued at $139,000 after purchasing an additional 1,273 shares during the last quarter. Institutional investors own 36.39% of the company's stock.

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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