ON24 (NYSE:ONTF) Shares Down 3.2% - Here's Why

Key Points

• ON24 shares fell by 3.2% to $5.15, with trading volume dropping 38% below the average, indicating a significant decline in market interest.
• Recent analyst updates saw Robert W. Baird and Canaccord Genuity reduce their target prices to $5.00, maintaining a "hold" rating on the stock, which currently has a consensus target price of $5.33.
• The company's Board of Directors approved a $50 million share buyback plan, suggesting confidence in the stock's value despite the recent price drop.

ON24, Inc. (NYSE:ONTF - Get Free Report) was down 3.2% during mid-day trading on Thursday . The stock traded as low as $5.15 and last traded at $5.15. Approximately 141,387 shares changed hands during mid-day trading, a decline of 38% from the average daily volume of 228,461 shares. The stock had previously closed at $5.32.

Analyst Upgrades and Downgrades

Several analysts have recently issued reports on ONTF shares. Robert W. Baird dropped their target price on shares of ON24 from $7.00 to $5.00 and set a "neutral" rating on the stock in a research report on Thursday, May 8th. Canaccord Genuity Group decreased their price target on shares of ON24 from $9.00 to $5.00 and set a "hold" rating on the stock in a research note on Thursday, May 8th. Five analysts have rated the stock with a hold rating, According to MarketBeat.com, the company currently has an average rating of "Hold" and an average target price of $5.33.

ON24 Price Performance

The company's 50 day moving average price is $5.40 and its two-hundred day moving average price is $5.57. The stock has a market capitalization of $223.18 million, a PE ratio of -5.47 and a beta of 0.65.

ON24 declared that its Board of Directors has approved a share repurchase program on Monday, May 12th that permits the company to buyback $50.00 million in outstanding shares. This buyback authorization permits the company to purchase up to 22.6% of its shares through open market purchases. Shares buyback programs are usually a sign that the company's board of directors believes its shares are undervalued.

Insider Activity at ON24

In other news, CFO Steven Vattuone sold 22,048 shares of the business's stock in a transaction that occurred on Friday, June 6th. The shares were sold at an average price of $5.55, for a total value of $122,366.40. Following the sale, the chief financial officer directly owned 634,532 shares of the company's stock, valued at approximately $3,521,652.60. The trade was a 3.36% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Sharat Sharan sold 37,784 shares of the business's stock in a transaction that occurred on Monday, July 14th. The shares were sold at an average price of $5.16, for a total transaction of $194,965.44. Following the completion of the sale, the insider directly owned 3,575,339 shares in the company, valued at $18,448,749.24. This trade represents a 1.05% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders acquired 461,546 shares of company stock valued at $2,547,766 and sold 247,848 shares valued at $1,347,116. Company insiders own 33.00% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the business. Lynrock Lake LP grew its holdings in ON24 by 4.5% during the 1st quarter. Lynrock Lake LP now owns 7,659,474 shares of the company's stock worth $39,829,000 after acquiring an additional 329,715 shares in the last quarter. Federated Hermes Inc. lifted its position in shares of ON24 by 1.6% during the 4th quarter. Federated Hermes Inc. now owns 1,167,713 shares of the company's stock worth $7,543,000 after buying an additional 18,372 shares during the last quarter. Acadian Asset Management LLC lifted its position in shares of ON24 by 18.0% during the 1st quarter. Acadian Asset Management LLC now owns 830,851 shares of the company's stock worth $4,319,000 after buying an additional 127,010 shares during the last quarter. JPMorgan Chase & Co. lifted its position in shares of ON24 by 43.5% during the 4th quarter. JPMorgan Chase & Co. now owns 821,461 shares of the company's stock worth $5,307,000 after buying an additional 249,045 shares during the last quarter. Finally, Arrowstreet Capital Limited Partnership lifted its position in shares of ON24 by 15.6% during the 4th quarter. Arrowstreet Capital Limited Partnership now owns 490,086 shares of the company's stock worth $3,166,000 after buying an additional 66,022 shares during the last quarter. Institutional investors and hedge funds own 83.93% of the company's stock.

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.