ON Sees Unusually Large Options Volume (NYSE:ONON)

Key Points

• Options activity increased: Traders purchased 13,182 put options in On Holding, 7% above the typical volume, suggesting heightened bearish or hedging activity.
• ON shares fell 2% to $28.93, near their one-year low, after the company reported quarterly earnings and revenue below analyst expectations despite 13.5% year-over-year revenue growth.
• Insiders bought shares: Chairman Olivier Bernhard and CEO Caspar Felix Coppetti each purchased 65,000 shares at an average price of $30.67. Analysts maintain a “Moderate Buy” consensus, with an average price target of $48.57.

On Holding AG (NYSE:ONON - Get Free Report) was the recipient of some unusual options trading activity on Tuesday. Stock traders acquired 13,182 put options on the stock. This is an increase of 7% compared to the typical volume of 12,269 put options.

ON Trading Down 2.0%

ONON stock traded down $0.58 during midday trading on Tuesday, hitting $28.93. 5,635,508 shares of the company's stock were exchanged, compared to its average volume of 6,218,279. The business has a 50-day simple moving average of $35.88 and a two-hundred day simple moving average of $37.88. The company has a current ratio of 2.83, a quick ratio of 2.25 and a debt-to-equity ratio of 0.25. The stock has a market capitalization of $18.46 billion, a PE ratio of 19.66, a P/E/G ratio of 0.61 and a beta of 2.12. ON has a 1-year low of $28.55 and a 1-year high of $51.08.

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

Insider Buying and Selling

In related news, insider Olivier Bernhard acquired 65,000 shares of the stock in a transaction on Friday, August 14th. The stock was bought at an average cost of $30.67 per share, with a total value of $1,993,550.00. Following the transaction, the insider directly 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 document filed with the SEC, which is available at this link. Also, CEO Caspar Felix Coppetti bought 65,000 shares of ON stock in a transaction dated Friday, August 14th. The shares were bought at an average cost of $30.67 per share, for a total transaction of $1,993,550.00. Following the completion of the transaction, the chief executive officer owned 2,440,855 shares of the company's stock, valued at approximately $74,861,022.85. This trade represents a 2.74% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure.

Hedge Funds Weigh In On ON

Several institutional investors and hedge funds have recently made changes to their positions in ONON. Caitlin John LLC bought a new stake in shares of ON in the fourth quarter valued at about $25,000. Cullen Frost Bankers Inc. increased its position in ON by 639.7% during the fourth quarter. Cullen Frost Bankers Inc. now owns 540 shares of the company's stock worth $25,000 after acquiring an additional 467 shares during the period. MidAtlantic Capital Management Inc. bought a new position in ON during the fourth quarter worth about $27,000. Caitong International Asset Management Co. Ltd raised its stake in ON by 555.1% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 701 shares of the company's stock worth $33,000 after purchasing an additional 594 shares in the last quarter. Finally, EverSource Wealth Advisors LLC raised its stake in ON by 69.6% in the 1st quarter. EverSource Wealth Advisors LLC now owns 760 shares of the company's stock worth $26,000 after purchasing an additional 312 shares in the last quarter. Institutional investors and hedge funds own 36.39% of the company's stock.

Wall Street Analysts Forecast Growth

ONON has been the topic of several analyst reports. Stifel Nicolaus cut their price target on shares of ON from $60.00 to $41.00 and set a "buy" rating on the stock in a report on Wednesday, August 12th. Sanford C. Bernstein restated an "outperform" rating and set a $62.00 target price on shares of ON in a research note on Wednesday, August 12th. Robert W. Baird decreased their price target on ON from $70.00 to $55.00 and set an "outperform" rating for the company in a research note on Wednesday, August 12th. William Blair downgraded ON from an "outperform" rating to a "market perform" rating in a report on Tuesday, August 11th. Finally, Zacks Research lowered ON from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, August 5th. One investment analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, ON presently has a consensus rating of "Moderate Buy" and a consensus price target of $48.57.

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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