Stock Traders Purchase High Volume of ON Put Options (NYSE:ONON)

Key Points

• ON saw unusually heavy bearish options activity: Traders purchased 42,982 put options, roughly 191% above the average volume.
• Company insiders increased their holdings: CEO Caspar Coppetti and insider Olivier Bernhard each bought 65,000 shares at $30.67 per share; insiders collectively own 68.57% of the stock.
• Shares fell 2.5% to $26.46 and remain near their one-year low after the company missed quarterly EPS and revenue estimates. Analysts maintain a consensus “Moderate Buy” rating with a $43.92 price target.

On Holding AG (NYSE:ONON - Get Free Report) saw some unusual options trading on Thursday. Traders acquired 42,982 put options on the stock. This is an increase of approximately 191% compared to the average volume of 14,760 put options.

Insider Buying and Selling at ON

In other ON news, CEO Caspar Coppetti acquired 65,000 shares of the firm's stock in a transaction that occurred on Friday, August 14th. The shares were acquired at an average cost of $30.67 per share, for a total transaction of $1,993,550.00. Following the transaction, the chief executive officer directly owned 2,440,855 shares of the company's stock, valued at approximately $74,861,022.85. This represents a 2.74% 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, insider Olivier Bernhard acquired 65,000 shares of the stock in a transaction that occurred on Friday, August 14th. The stock was acquired at an average cost of $30.67 per share, for a total transaction of $1,993,550.00. Following the completion of the purchase, the insider owned 5,228,184 shares in the company, valued at $160,348,403.28. The trade was a 1.26% increase in their position. The SEC filing for this purchase provides additional information. 68.57% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On ON

Several institutional investors and hedge funds have recently bought and sold shares of the stock. Platinum Paramount Investment LTD. purchased a new stake in shares of ON during the 4th quarter valued at $525,784,000. Bamco Inc. NY boosted its holdings in ON by 13.9% in the fourth quarter. Bamco Inc. NY now owns 5,405,486 shares of the company's stock valued at $251,247,000 after acquiring an additional 658,933 shares during the last quarter. Norges Bank purchased a new stake in ON during the fourth quarter valued at about $128,826,000. Clearbridge Investments LLC grew its position in ON by 110.3% during the fourth quarter. Clearbridge Investments LLC now owns 2,179,978 shares of the company's stock valued at $101,325,000 after acquiring an additional 1,143,414 shares during the period. Finally, Franklin Resources Inc. increased its stake in ON by 40.5% during the fourth quarter. Franklin Resources Inc. now owns 2,126,297 shares of the company's stock worth $98,830,000 after acquiring an additional 613,063 shares during the last quarter. Institutional investors and hedge funds own 36.39% of the company's stock.

ON Trading Down 2.5%

ON stock traded down $0.69 during trading on Thursday, hitting $26.46. The company's stock had a trading volume of 3,616,282 shares, compared to its average volume of 6,310,244. The stock's fifty day moving average is $32.87 and its 200 day moving average is $35.73. ON has a 1-year low of $26.36 and a 1-year high of $51.08. The stock has a market capitalization of $16.89 billion, a price-to-earnings ratio of 17.96, a P/E/G ratio of 0.54 and a beta of 2.08. The company has a debt-to-equity ratio of 0.25, a quick ratio of 2.25 and a current ratio of 2.83.

ON (NYSE:ONON - Get Free Report) last issued its quarterly earnings results on Tuesday, August 11th. The company reported $0.35 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.42 by ($0.07). The business had revenue of $1.05 billion during the quarter, compared to analyst estimates of $1.09 billion. ON had a return on equity of 22.92% and a net margin of 12.09%.The firm's quarterly revenue was up 13.5% on a year-over-year basis. During the same period in the previous year, the business posted ($0.09) earnings per share. As a group, equities research analysts predict that ON will post 1.49 EPS for the current year.

Wall Street Analyst Weigh In

Several analysts have recently commented on ONON shares. Williams Trading set a $32.00 price target on shares of ON in a research report on Tuesday, August 11th. Berenberg Bank set a $38.00 target price on ON in a research note on Monday. Wall Street Zen cut ON from a "buy" rating to a "hold" rating in a report on Saturday, July 18th. Telsey Advisory Group dropped their price target on ON from $51.00 to $43.00 and set an "outperform" rating for the company in a research report on Wednesday, August 12th. Finally, Zacks Research cut ON from a "hold" rating to a "strong sell" rating in a report on Thursday, September 3rd. Two equities research analysts have rated the stock with a Strong Buy rating, eighteen have given a Buy rating, five have issued a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $43.92.

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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