ON (NYSE:ONON) Shares Down 7.4% - Should You Sell?

Key Points

• ON Holding shares fell 7.4% on Monday, closing near $36 after trading as low as $35.73. Trading volume was well below average, indicating lighter-than-usual investor participation.
• Despite the pullback, Wall Street sentiment remains broadly positive: the stock carries a “Moderate Buy” consensus rating and an average price target of $55.05. Several firms recently reiterated or raised buy ratings, though some trimmed their targets.
• Fundamentals and insider activity were mixed but generally supportive. The company beat quarterly EPS and revenue estimates, while CEO Caspar Felix Coppetti bought 60,000 shares and insiders have been net buyers over the past 90 days.

On Holding AG (NYSE:ONON - Get Free Report) dropped 7.4% during trading on Monday . The stock traded as low as $35.73 and last traded at $36.0130. 2,359,005 shares were traded during trading, a decline of 61% from the average daily volume of 6,067,393 shares. The stock had previously closed at $38.88.

Analyst Upgrades and Downgrades

A number of analysts have recently weighed in on the stock. Sanford C. Bernstein reiterated an "outperform" rating on shares of ON in a research note on Wednesday, March 4th. Raymond James Financial upgraded ON from an "outperform" rating to a "strong-buy" rating and set a $52.00 price objective for the company in a research note on Thursday, April 23rd. Stifel Nicolaus set a $58.00 target price on ON in a research note on Tuesday, March 3rd. Truist Financial reduced their price target on ON from $55.00 to $48.00 and set a "buy" rating for the company in a research report on Tuesday, May 12th. Finally, Telsey Advisory Group dropped their price objective on shares of ON from $60.00 to $51.00 and set an "outperform" rating on the stock in a research note on Wednesday, May 13th. Two equities research analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $55.05.

ON Stock Performance

The company has a market capitalization of $23.22 billion, a price-to-earnings ratio of 39.18, a price-to-earnings-growth ratio of 0.76 and a beta of 2.10. The firm has a fifty day simple moving average of $37.10 and a 200 day simple moving average of $41.56. The company has a debt-to-equity ratio of 0.26, a current ratio of 2.98 and a quick ratio of 2.39.

ON (NYSE:ONON - Get Free Report) last announced its earnings results on Tuesday, May 12th. The company reported $0.46 earnings per share 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 during the quarter, compared to the consensus estimate of $1.03 billion. During the same period in the prior year, the company posted $0.21 EPS. The business's quarterly revenue was up 14.5% on a year-over-year basis. On average, analysts anticipate that On Holding AG will post 1.47 earnings per share for the current fiscal year.

Insider Activity at ON

In other ON news, CEO Caspar Felix Coppetti bought 60,000 shares of ON stock in a transaction dated Thursday, May 14th. The stock was acquired at an average cost of $36.64 per share, for a total transaction of $2,198,400.00. Following the completion of the transaction, the chief executive officer directly owned 2,375,855 shares of the company's stock, valued at approximately $87,051,327.20. This represents a 2.59% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Also, 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 completion of the transaction, the chief executive officer directly owned 1,385,099 shares in the company, valued at approximately $49,641,948.16. This represents a 0.30% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have purchased 180,000 shares of company stock valued at $6,594,000 and have sold 16,600 shares valued at $580,710.

Institutional Trading of ON

A number of hedge funds have recently bought and sold shares of the business. Cullen Frost Bankers Inc. boosted its holdings in shares of ON by 639.7% during the 4th quarter. Cullen Frost Bankers Inc. now owns 540 shares of the company's stock worth $25,000 after purchasing an additional 467 shares during the last quarter. Caitlin John LLC acquired a new stake in shares of ON in the fourth quarter valued at approximately $25,000. EverSource Wealth Advisors LLC lifted its position in ON by 69.6% during the first quarter. EverSource Wealth Advisors LLC now owns 760 shares of the company's stock worth $26,000 after buying an additional 312 shares in the last quarter. MidAtlantic Capital Management Inc. purchased a new position in ON during the fourth quarter worth approximately $27,000. Finally, Caitong International Asset Management Co. Ltd boosted its stake in ON by 555.1% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 701 shares of the company's stock worth $33,000 after buying an additional 594 shares during the last quarter. Institutional investors and hedge funds 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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