ON (NYSE:ONON) Receives Market Perform Rating from William Blair

Key Points

• William Blair reiterated its “market perform” rating on On Holding, while broader analyst coverage remains favorable with a consensus “Moderate Buy” rating and an average price target of $53.42.
• ONON shares fell $8.01 to $30.77, near their 12-month low, amid a recent revenue miss and concerns about wholesale growth, tariffs and cautious consumer spending. The company nevertheless reported stronger-than-expected EPS, improving margins and continued direct-to-consumer momentum.
• Insiders showed confidence in the stock: executives acquired 180,000 shares worth approximately $6.6 million over the past three months, including 60,000-share purchases by CEO David Allemann and insider Olivier Bernhard.

ON (NYSE:ONON - Get Free Report)'s stock had its "market perform" rating reiterated by research analysts at William Blair in a note issued to investors on Tuesday, Marketbeat Ratings reports.

Several other research firms also recently commented on ONON. Wall Street Zen downgraded shares of ON from a "buy" rating to a "hold" rating in a report on Saturday, July 18th. Weiss Ratings restated a "hold (c-)" rating on shares of ON in a research note on Friday. UBS Group decreased their target price on shares of ON from $85.00 to $82.00 and set a "buy" rating on the stock in a research note on Wednesday, July 29th. Barclays reduced their price objective on ON from $57.00 to $46.00 and set an "overweight" rating on the stock in a research report on Wednesday, May 13th. Finally, Zacks Research lowered ON from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, August 5th. Two investment analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating, five have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target of $53.42.

ON Stock Performance

ONON traded down $8.01 during trading on Tuesday, hitting $30.77. The stock had a trading volume of 28,821,788 shares, compared to its average volume of 5,902,707. The company has a current ratio of 2.98, a quick ratio of 2.39 and a debt-to-equity ratio of 0.26. The firm has a market cap of $19.63 billion, a PE ratio of 33.15, a P/E/G ratio of 0.69 and a beta of 2.12. ON has a 12 month low of $30.11 and a 12 month high of $52.20. The company has a 50 day simple moving average of $37.31 and a 200-day simple moving average of $38.91.

ON (NYSE:ONON - Get Free Report) last posted 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 business had revenue of $1.04 billion for the quarter, compared to analysts' expectations of $1.03 billion. ON had a net margin of 7.92% and a return on equity of 15.72%. The firm's revenue was up 14.5% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.21 EPS. Analysts expect that ON will post 1.52 EPS for the current year.

Insider Activity at ON

In other ON news, CEO David Michael Allemann acquired 60,000 shares of the business's stock in a transaction on 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 completion of the acquisition, the chief executive officer owned 2,841,108 shares in the company, valued at $104,069,786.04. This trade represents a 2.16% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Olivier Bernhard acquired 60,000 shares of the stock in a transaction dated Thursday, May 14th. The stock was bought at an average cost of $36.63 per share, with a total value of $2,197,800.00. Following the completion of the purchase, the insider directly owned 5,163,184 shares in the company, valued at approximately $189,127,429.92. The trade was a 1.18% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Insiders acquired a total of 180,000 shares of company stock valued at $6,594,000 in the last three months.

Institutional Investors Weigh In On ON

Hedge funds and other institutional investors have recently made changes to their positions in the company. Bison Wealth LLC boosted its stake in shares of ON by 35.7% in the fourth quarter. Bison Wealth LLC now owns 9,291 shares of the company's stock worth $509,000 after acquiring an additional 2,442 shares during the last quarter. Prudential Financial Inc. acquired a new stake in shares of ON in the second quarter valued at $517,000. Invesco Ltd. boosted 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 buying an additional 118,498 shares during the period. Cresset Asset Management LLC increased its holdings in ON by 13.5% during the 2nd quarter. Cresset Asset Management LLC now owns 7,232 shares of the company's stock worth $376,000 after purchasing an additional 860 shares during the period. Finally, Daiwa Securities Group Inc. lifted its stake in ON by 91.7% in the second quarter. Daiwa Securities Group Inc. now owns 2,661 shares of the company's stock worth $139,000 after acquiring an additional 1,273 shares during the last quarter. Institutional investors and hedge funds own 36.39% of the company's stock.

Key ON News

Here are the key news stories impacting ON this week:

• Positive Sentiment: Profitability remained strong. Second-quarter adjusted results included earnings of roughly $0.43–$0.44 per share, slightly above or in line with consensus, while gross margin improved to 65.4% and adjusted EBITDA margin reached 19.8%. Management also raised its full-year gross-margin expectation to at least 65.0%. On Holding Slides After Q2 Sales Missed Expectations Despite Strong Margins
• Positive Sentiment: Direct-to-consumer momentum continued. Second-quarter net sales rose 13.5% year over year to CHF 850.3 million, or 21.6% in constant currency. Direct-to-consumer sales increased 26.0% and represented 45.7% of revenue, supporting On’s premium-brand positioning. On Holding Q2 Earnings DTC Drives Sales Increase
• Neutral Sentiment: Full-year revenue guidance was approximately $4.4 billion to $4.5 billion, near the $4.5 billion analyst consensus. Management’s decision to limit wholesale sell-in may protect pricing and reduce promotions, but it also implies slower reported sales growth in the near term. On Holding Q2 2026 Earnings Call Transcript
• Negative Sentiment: Revenue missed expectations. Reported sales of about $1.05 billion came in below analysts’ roughly $1.09 billion estimate. Wholesale growth was only 4.8%, and foreign-exchange effects materially reduced the reported growth rate. On shares tumble after quarterly net sales miss
• Negative Sentiment: Tariff costs and cautious consumer spending added pressure, while Needham lowered its price target from $45 to $37, although it retained a Buy rating. The combination of a sales miss, subdued wholesale demand and reduced earnings visibility outweighed the strong margins, driving the selloff. Needham lowers On Holding price target

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source