ON24 (NYSE:ONTF) Rating Increased to Buy at Wall Street Zen

Key Points

• ON24's stock rating has been upgraded from a "hold" to a "buy" by Wall Street Zen, indicating increased confidence in the company.
• The company has initiated a $50 million stock repurchase program, suggesting that its board believes the stock is undervalued.
• Analyst consensus currently rates ON24 stock as a "Hold", with a price target averaging $5.33.

Wall Street Zen upgraded shares of ON24 (NYSE:ONTF - Free Report) from a hold rating to a buy rating in a research report released on Saturday.

A number of other brokerages have also weighed in on ONTF. Robert W. Baird dropped their price objective on ON24 from $7.00 to $5.00 and set a "neutral" rating on the stock in a report on Thursday, May 8th. Canaccord Genuity Group decreased their target price on ON24 from $9.00 to $5.00 and set a "hold" rating on the stock in a research report on Thursday, May 8th. Five equities research analysts have rated the stock with a hold rating and one has issued a buy rating to the company's stock. According to data from MarketBeat.com, the company presently has an average rating of "Hold" and an average price target of $5.33.

ON24 Stock Down 1.9%

ONTF stock traded down $0.10 on Friday, reaching $4.84. 265,123 shares of the company's stock were exchanged, compared to its average volume of 158,306. The stock has a fifty day moving average of $5.29 and a 200-day moving average of $5.47. ON24 has a twelve month low of $4.35 and a twelve month high of $7.03. The firm has a market cap of $205.37 million, a PE ratio of -5.62 and a beta of 0.65.

ON24 announced that its Board of Directors has initiated a stock buyback plan on Monday, May 12th that authorizes the company to repurchase $50.00 million in outstanding shares. This repurchase authorization authorizes the company to repurchase up to 22.6% of its stock through open market purchases. Stock repurchase plans are usually a sign that the company's leadership believes its shares are undervalued.

Insider Buying and Selling

In related news, major shareholder Lake Lp Lynrock acquired 33,407 shares of ON24 stock in a transaction dated Thursday, June 12th. The shares were acquired at an average cost of $5.56 per share, for a total transaction of $185,742.92. Following the completion of the transaction, the insider directly owned 8,293,974 shares of the company's stock, valued at $46,114,495.44. The trade was a 0.40% increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Also, insider Sharat Sharan sold 37,784 shares of the company's stock in a transaction on Monday, July 14th. The shares were sold at an average price of $5.16, for a total value of $194,965.44. Following the completion of the sale, the insider owned 3,575,339 shares in the company, valued at $18,448,749.24. This represents a 1.05% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders have acquired 436,970 shares of company stock valued at $2,420,954 and have sold 247,848 shares valued at $1,347,116. 33.00% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On ON24

Several large investors have recently added to or reduced their stakes in the business. Intech Investment Management LLC lifted its position in ON24 by 26.4% during the second quarter. Intech Investment Management LLC now owns 23,042 shares of the company's stock worth $125,000 after buying an additional 4,809 shares during the period. Geode Capital Management LLC lifted its position in ON24 by 13.7% during the second quarter. Geode Capital Management LLC now owns 852,320 shares of the company's stock worth $4,629,000 after buying an additional 102,396 shares during the period. Acadian Asset Management LLC increased its stake in ON24 by 1.8% during the second quarter. Acadian Asset Management LLC now owns 845,702 shares of the company's stock worth $4,590,000 after acquiring an additional 14,851 shares during the last quarter. Bank of Montreal Can acquired a new stake in ON24 during the second quarter worth about $123,000. Finally, R Squared Ltd increased its stake in ON24 by 18.6% during the second quarter. R Squared Ltd now owns 49,103 shares of the company's stock worth $267,000 after acquiring an additional 7,688 shares during the last quarter. 83.93% of the stock is currently owned by hedge funds and other institutional investors.

About ON24

ON24, Inc provides a cloud-based intelligent engagement platform that enables businesses to convert customer engagement into revenue through interactive webinar, virtual event, and multimedia content experiences worldwide. The company provides ON24 Elite, for live and interactive webinar experience; ON24 Breakouts, for live breakout room experience that facilitates networking, collaboration, and interactivity between users; ON24 Forums, for live and interactive experience, which facilitates video-to-video interaction between presenters and audiences; ON24 Go Live, for live and interactive video event experience that enables presenters and attendees to engage face-to-face in real-time; and ON24 Virtual Confrence, for live and large scale managed virtual event experience.