ON (NYSE:ONON) Sees Strong Trading Volume - Should You Buy?

Key Points

• ON Holding shares jumped 12.3% to about $30.85, with trading volume rising 116% to 14 million shares.
• Analyst sentiment remains favorable, with a consensus “Moderate Buy” rating and an average price target of $43.92, though some analysts have reduced targets or assigned hold/sell ratings.
• The company’s latest quarterly results missed expectations on both earnings and revenue, but revenue still grew 13.5% year over year; meanwhile, two insiders each purchased 65,000 shares at approximately $30.67.

On Holding AG (NYSE:ONON - Get Free Report) shares saw strong trading volume on Tuesday . 14,036,330 shares were traded during mid-day trading, an increase of 116% from the previous session's volume of 6,502,427 shares.The stock last traded at $30.8480 and had previously closed at $27.32.

Analyst Ratings Changes

Several research analysts recently commented on ONON shares. BTIG Research restated a "buy" rating and issued a $60.00 price target on shares of ON in a report on Wednesday, September 16th. BMO Capital Markets reissued a "market perform" rating on shares of ON in a research report on Friday. JPMorgan Chase & Co. initiated coverage on shares of ON in a research report on Thursday, July 2nd. They issued an "overweight" rating and a $51.00 price objective for the company. Williams Trading set a $32.00 target price on shares of ON in a research note on Tuesday, August 11th. Finally, Telsey Advisory Group reduced their target price on shares of ON from $51.00 to $43.00 and set an "outperform" rating on the stock in a report on Wednesday, August 12th. Two equities research analysts have rated the stock with a Strong Buy rating, nineteen have given a Buy rating, four have assigned a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $43.92.

ON Stock Up 12.3%

The firm has a 50-day moving average of $32.24 and a 200 day moving average of $35.34. The stock has a market capitalization of $19.57 billion, a price-to-earnings ratio of 20.87, a price-to-earnings-growth ratio of 0.55 and a beta of 2.08. 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 (NYSE:ONON - Get Free Report) last issued 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). The firm 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 firm's revenue was up 13.5% compared to the same quarter last year. During the same period last year, the business earned ($0.09) EPS. On average, sell-side analysts anticipate that On Holding AG will post 1.49 earnings per share for the current year.

Insiders Place Their Bets

In other news, CEO Caspar Coppetti purchased 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, with a total value of $1,993,550.00. Following the acquisition, the chief executive officer owned 2,440,855 shares in the company, valued at approximately $74,861,022.85. This trade represents a 2.74% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, insider Olivier Bernhard purchased 65,000 shares of the company'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 insider directly owned 5,228,184 shares in the company, valued at $160,348,403.28. This trade represents a 1.26% increase in their ownership of the stock. The SEC filing for this purchase provides additional information.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of ONON. Cullen Frost Bankers Inc. grew its stake in ON by 639.7% during the 4th quarter. Cullen Frost Bankers Inc. now owns 540 shares of the company's stock valued at $25,000 after purchasing an additional 467 shares in the last quarter. EverSource Wealth Advisors LLC raised its position in shares of ON by 69.6% in the 1st quarter. EverSource Wealth Advisors LLC now owns 760 shares of the company's stock valued at $26,000 after purchasing an additional 312 shares in the last quarter. MidAtlantic Capital Management Inc. acquired a new position in shares of ON in the 4th quarter valued at approximately $27,000. Ascentis Independent Advisors purchased a new position in shares of ON during the 1st quarter valued at approximately $34,000. Finally, TD Private Client Wealth LLC boosted its stake in shares of ON by 109.9% during the 4th quarter. TD Private Client Wealth LLC now owns 804 shares of the company's stock valued at $37,000 after buying an additional 421 shares during the last quarter. Institutional investors and hedge funds own 36.39% of the company's stock.

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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