ON (NYSE:ONON) Reaches New 52-Week Low - What's Next?

Key Points

• On Holding shares fell to a new 52-week low of $26.42, with the stock down 2.3% and trading below its 50-day and 200-day moving averages.
• The company’s latest quarterly results missed expectations, reporting adjusted EPS of $0.35 versus $0.42 expected and revenue of $1.05 billion versus $1.09 billion, despite 13.5% year-over-year revenue growth.
• Investor sentiment is mixed: options activity shows elevated demand for puts, while analysts maintain an overall “Moderate Buy” rating with an average $43.92 price target; company insiders also recently purchased shares.

Shares of On Holding AG (NYSE:ONON - Get Free Report) hit a new 52-week low during mid-day trading on Thursday . The stock traded as low as $26.42 and last traded at $26.4420, with a volume of 1694596 shares changing hands. The stock had previously closed at $27.15.

ON News Roundup

Here are the key news stories impacting ON this week:

• Positive Sentiment: Analyst support remains strong. BTIG Research reaffirmed its “buy” rating and set a $60 price target, implying substantial upside from current levels. Berenberg also upgraded On Holding to “strong-buy.” BTIG rating and price target Berenberg upgrade
• Positive Sentiment: Valuation-focused coverage suggests potential upside. Recent analyses argue that On Holding may be undervalued based on its earnings potential, while its direct-to-consumer strategy could support higher profit margins in 2026. On Holding valuation analysis On Holding 2026 outlook
• Neutral Sentiment: Coverage comparing On Holding with Superior Group of Companies provides additional financial context but does not identify a material new catalyst for ONON. Financial survey
• Negative Sentiment: Options traders are positioning defensively. Traders purchased 42,982 put options, roughly 191% above the average daily volume, signaling elevated expectations for further downside or increased demand for downside protection. Put options activity
• Negative Sentiment: The latest earnings report showed adjusted EPS of $0.35 versus the $0.42 consensus estimate, while revenue of $1.05 billion also fell short of the $1.09 billion forecast. Those misses are weighing on investor confidence despite 13.5% annual revenue growth.

Analyst Ratings Changes

A number of analysts have recently commented on the company. Zacks Research downgraded ON from a "hold" rating to a "strong sell" rating in a research note on Thursday, September 3rd. Truist Financial lowered their target price on ON from $48.00 to $40.00 and set a "buy" rating on the stock in a report on Tuesday, August 11th. KeyCorp reiterated an "overweight" rating on shares of ON in a research report on Monday, August 10th. Berenberg Bank set a $38.00 price target on shares of ON in a report on Monday. Finally, The Goldman Sachs Group set a $42.00 price target on shares of ON in a report on Wednesday, August 12th. 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 currently has an average rating of "Moderate Buy" and an average target price of $43.92.

ON Stock Down 2.3%

The company has a market capitalization of $16.92 billion, a price-to-earnings ratio of 18.04, a price-to-earnings-growth ratio of 0.54 and a beta of 2.08. The company has a quick ratio of 2.25, a current ratio of 2.83 and a debt-to-equity ratio of 0.25. The business has a 50-day moving average price of $32.87 and a 200-day moving average price of $35.73.

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

Insider Activity

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

Hedge Funds Weigh In On ON

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Cullen Frost Bankers Inc. boosted its position in shares of ON by 639.7% in the fourth quarter. Cullen Frost Bankers Inc. now owns 540 shares of the company's stock worth $25,000 after buying an additional 467 shares during the period. MidAtlantic Capital Management Inc. acquired a new position in ON during the fourth quarter valued at $27,000. EverSource Wealth Advisors LLC raised its position in ON by 69.6% during the first quarter. EverSource Wealth Advisors LLC now owns 760 shares of the company's stock valued at $26,000 after buying an additional 312 shares during the period. TD Private Client Wealth LLC lifted its stake in ON by 109.9% in the 4th quarter. TD Private Client Wealth LLC now owns 804 shares of the company's stock worth $37,000 after acquiring an additional 421 shares in the last quarter. Finally, Ascentis Independent Advisors purchased a new stake in ON in the 1st quarter worth about $34,000. 36.39% of the stock is currently owned by hedge funds and other institutional investors.

ON Company Profile

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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