ON (NYSE:ONON) Sets New 1-Year Low - Time to Sell?

Key Points

• ON Holding shares fell to a new 52-week low of $30.11, well below their prior close of $38.78 and their 50- and 200-day moving averages.
• Despite the selloff, analysts maintain a generally positive outlook: ON has a consensus “Moderate Buy” rating and an average price target of $53.84, although several firms recently lowered their targets.
• Recent fundamentals were stronger than expected, with quarterly EPS of $0.46 and revenue of $1.04 billion, while insiders purchased 180,000 shares worth $6.6 million during the last quarter.

On Holding AG (NYSE:ONON - Get Free Report) shares reached a new 52-week low during mid-day trading on Tuesday . The stock traded as low as $30.11 and last traded at $30.8750, with a volume of 9164567 shares. The stock had previously closed at $38.78.

Analysts Set New Price Targets

A number of research firms recently issued reports on ONON. Weiss Ratings restated a "hold (c-)" rating on shares of ON in a report on Friday. JPMorgan Chase & Co. began coverage on shares of ON in a research note on Thursday, July 2nd. They set an "overweight" rating and a $51.00 price target on the stock. Guggenheim reissued a "buy" rating and set a $51.00 price objective on shares of ON in a research note on Wednesday, May 13th. Needham & Company LLC dropped their price objective on ON from $52.00 to $45.00 and set a "buy" rating for the company in a report on Tuesday, May 12th. Finally, Truist Financial reduced 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. Two equities research analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, ON currently has a consensus rating of "Moderate Buy" and a consensus target price of $53.84.

ON Price Performance

The company's fifty 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 quick ratio of 2.39 and a current ratio of 2.98. The firm has a market cap of $20.09 billion, a price-to-earnings ratio of 33.89, a price-to-earnings-growth ratio of 0.69 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 the consensus estimate of $0.35 by $0.11. The firm had revenue of $1.04 billion during the quarter, compared to the consensus estimate of $1.03 billion. ON had a return on equity of 15.72% and a net margin of 7.92%.The firm's quarterly revenue was up 14.5% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.21 EPS. Equities research analysts forecast that On Holding AG will post 1.52 EPS for the current year.

Insider Transactions at ON

In related news, CEO David Michael Allemann bought 60,000 shares of the stock in a transaction dated Thursday, May 14th. The stock was acquired at an average price of $36.63 per share, for a total transaction of $2,197,800.00. Following the completion of the purchase, the chief executive officer owned 2,841,108 shares in the company, valued at $104,069,786.04. This represents a 2.16% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Olivier Bernhard bought 60,000 shares of the company's stock in a transaction that occurred on 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 completion of 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 position. The SEC filing for this purchase provides additional information. Insiders purchased 180,000 shares of company stock valued at $6,594,000 over the last quarter.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in ONON. Caitlin John LLC acquired a new stake in ON during the 4th quarter valued at $25,000. Cullen Frost Bankers Inc. lifted its holdings in ON by 639.7% in the 4th quarter. Cullen Frost Bankers Inc. now owns 540 shares of the company's stock worth $25,000 after buying an additional 467 shares in the last quarter. MidAtlantic Capital Management Inc. acquired a new position in ON in the 4th quarter worth $27,000. Caitong International Asset Management Co. Ltd boosted its position in ON by 555.1% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 701 shares of the company's stock valued at $33,000 after buying an additional 594 shares during the last quarter. Finally, EverSource Wealth Advisors LLC boosted its position in 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 buying an additional 312 shares during the last quarter. 36.39% of the stock is 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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