Investors Purchase High Volume of Call Options on ON (NYSE:ONON)

Key Points

• Unusual options activity: Traders purchased 37,645 call options on ON Holding, 175% above the average call volume, suggesting increased bullish interest.
• Analysts remain moderately bullish: ON has a consensus “Moderate Buy” rating and an average price target of $45.04, despite several recent target-price reductions.
• Shares and earnings faced pressure: ON stock rose 2.3% to $27.48 but remains near its 52-week low; the company’s latest quarterly EPS and revenue came in below analyst expectations. Insiders, including the CEO and co-founder, each bought 65,000 shares.

On Holding AG (NYSE:ONON - Get Free Report) saw some unusual options trading activity on Friday. Traders acquired 37,645 call options on the stock. This represents an increase of 175% compared to the average volume of 13,669 call options.

Analyst Ratings Changes

A number of brokerages have recently issued reports on ONON. BTIG Research lowered their target price on shares of ON from $70.00 to $60.00 and set a "buy" rating on the stock in a research report on Tuesday, August 11th. Robert W. Baird cut their price target on shares of ON from $70.00 to $55.00 and set an "outperform" rating for the company in a report on Wednesday, August 12th. Morgan Stanley started coverage on shares of ON in a report on Thursday. They issued an "overweight" rating and a $39.00 price target for the company. Guggenheim set a $42.00 price objective on shares of ON in a report on Friday. Finally, JPMorgan Chase & Co. started coverage on shares of ON in a research note on Thursday, July 2nd. They issued an "overweight" rating and a $51.00 price objective on the stock. One analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, five have given a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat, ON presently has an average rating of "Moderate Buy" and a consensus price target of $45.04.

ON Trading Up 2.3%

Shares of NYSE ONON traded up $0.62 on Friday, reaching $27.48. 5,126,623 shares of the company traded hands, compared to its average volume of 6,282,527. The stock has a market capitalization of $17.53 billion, a PE ratio of 18.68, a P/E/G ratio of 0.54 and a beta of 2.08. The company has a 50 day moving average of $33.62 and a 200 day moving average of $36.29. The company has a current ratio of 2.83, a quick ratio of 2.25 and a debt-to-equity ratio of 0.25. ON has a fifty-two week low of $26.60 and a fifty-two week high of $51.08.

ON (NYSE:ONON - Get Free Report) last announced its quarterly earnings data on Tuesday, August 11th. The company reported $0.35 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.42 by ($0.07). ON had a return on equity of 22.92% and a net margin of 12.09%.The firm had revenue of $1.05 billion for the quarter, compared to the consensus estimate of $1.09 billion. During the same quarter last year, the business earned ($0.09) earnings per share. The business's revenue for the quarter was up 13.5% compared to the same quarter last year. On average, equities research analysts forecast that ON will post 1.47 earnings per share for the current fiscal year.

Insider Buying and Selling at ON

In related news, insider Olivier Bernhard acquired 65,000 shares of ON stock in a transaction that occurred on Friday, August 14th. The shares were purchased at an average cost of $30.67 per share, for a total transaction of $1,993,550.00. Following the acquisition, the insider owned 5,228,184 shares in the company, valued at approximately $160,348,403.28. This represents a 1.26% increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, CEO Caspar Coppetti bought 65,000 shares of the firm's stock in a transaction that occurred on Friday, August 14th. The shares were purchased at an average cost of $30.67 per share, for a total transaction of $1,993,550.00. Following the purchase, the chief executive officer owned 2,440,855 shares in the company, valued at $74,861,022.85. This represents a 2.74% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. 68.57% of the stock is owned by company insiders.

Institutional Trading of ON

A number of hedge funds and other institutional investors have recently made changes to their positions in ONON. Platinum Paramount Investment LTD. purchased a new position in ON in the 4th quarter worth about $525,784,000. Sinvest Investments II Ltd. acquired a new stake in ON during the fourth quarter valued at $390,432,000. Morgan Stanley increased its position in ON by 40.9% during the fourth quarter. Morgan Stanley now owns 24,119,871 shares of the company's stock worth $1,121,092,000 after buying an additional 6,997,455 shares during the last quarter. Norges Bank acquired a new stake in shares of ON in the fourth quarter worth about $128,826,000. Finally, Ameriprise Financial Inc. boosted its holdings in shares of ON by 4,564.3% during the 2nd quarter. Ameriprise Financial Inc. now owns 2,291,611 shares of the company's stock worth $119,752,000 after buying an additional 2,242,480 shares during the period. 36.39% of the stock is currently owned by institutional investors.

About ON

On Holding AG, known as On, is a Swiss sportswear company that develops and sells performance footwear, apparel and accessories. The company is particularly recognized for its running shoes, which incorporate proprietary technologies such as CloudTec cushioning and Speedboard components designed to support comfort, responsiveness and energy return.

On serves athletes and consumers across categories including running, outdoor activities, training and everyday performance. Its products are sold through the company's direct-to-consumer channels, including its website and branded retail stores, as well as through a network of wholesale partners in markets around the world.

On was founded in 2010 in Switzerland by Olivier Bernhard, David Allemann and Caspar Coppetti.

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