ON (NYSE:ONON) Sets New 1-Year Low - Here's What Happened

Key Points

• On Holding shares hit a new 52-week low of $28.55, trading below both their 50-day and 200-day moving averages amid elevated volatility.
• Despite the decline, analysts maintain a generally positive outlook, with a “Moderate Buy” consensus rating and an average price target of $48.57; several firms recently lowered their targets.
• The company’s latest quarterly results missed expectations, with EPS of $0.35 versus $0.42 expected and revenue of $1.05 billion versus $1.09 billion forecast. Meanwhile, two insiders each purchased 65,000 shares at approximately $30.67 per share.

On Holding AG (NYSE:ONON - Get Free Report) shares reached a new 52-week low on Wednesday . The stock traded as low as $28.55 and last traded at $28.8170, with a volume of 10005589 shares. The stock had previously closed at $29.51.

Wall Street Analysts Forecast Growth

A number of research firms recently commented on ONON. Weiss Ratings upgraded ON from a "hold (c-)" rating to a "hold (c)" rating in a research note on Friday. KeyCorp reiterated an "overweight" rating on shares of ON in a report on Monday, August 10th. Telsey Advisory Group dropped their price target on ON from $51.00 to $43.00 and set an "outperform" rating on the stock in a research report on Wednesday, August 12th. JPMorgan Chase & Co. began coverage on shares of ON in a report on Thursday, July 2nd. They issued an "overweight" rating and a $51.00 price objective for the company. Finally, UBS Group dropped their target price on shares of ON from $83.00 to $73.00 and set a "buy" rating on the stock in a report on Wednesday, August 12th. One research analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, ON currently has an average rating of "Moderate Buy" and an average target price of $48.57.

ON Price Performance

The company has a debt-to-equity ratio of 0.25, a current ratio of 2.83 and a quick ratio of 2.25. The stock has a market capitalization of $18.39 billion, a price-to-earnings ratio of 19.60, a price-to-earnings-growth ratio of 0.60 and a beta of 2.12. The company has a 50-day simple moving average of $35.70 and a two-hundred day simple moving average of $37.77.

ON (NYSE:ONON - Get Free Report) last announced its quarterly earnings results 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 for 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 business's revenue was up 13.5% compared to the same quarter last year. During the same period last year, the firm posted ($0.09) EPS. On average, equities research analysts predict that On Holding AG will post 1.47 earnings per share for the current year.

Insider Transactions at ON

In other news, insider Olivier Bernhard bought 65,000 shares of ON stock in a transaction on Friday, August 14th. The stock was purchased at an average cost of $30.67 per share, with a total value of $1,993,550.00. Following the purchase, the insider directly owned 5,228,184 shares of the company's stock, valued at approximately $160,348,403.28. This trade represents a 1.26% increase in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, CEO Caspar Felix Coppetti bought 65,000 shares of the firm's stock in a transaction on Friday, August 14th. The stock was purchased at an average price of $30.67 per share, with a total value of $1,993,550.00. Following the transaction, the chief executive officer owned 2,440,855 shares in the company, valued at $74,861,022.85. The trade was a 2.74% increase in their position. The SEC filing for this purchase provides additional information.

Hedge Funds Weigh In On ON

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Jacobi Capital Management LLC increased its stake in ON by 3.6% during the fourth quarter. Jacobi Capital Management LLC now owns 6,875 shares of the company's stock valued at $320,000 after acquiring an additional 240 shares during the period. J.W. Cole Advisors Inc. lifted its position in shares of ON by 2.4% in the 4th quarter. J.W. Cole Advisors Inc. now owns 12,283 shares of the company's stock worth $571,000 after acquiring an additional 285 shares during the period. Parallel Advisors LLC lifted its position in shares of ON by 2.8% in the 4th quarter. Parallel Advisors LLC now owns 10,455 shares of the company's stock worth $486,000 after acquiring an additional 285 shares during the period. MetLife Investment Management LLC grew its holdings in shares of ON by 2.2% during the 4th quarter. MetLife Investment Management LLC now owns 14,411 shares of the company's stock worth $670,000 after purchasing an additional 308 shares in the last quarter. Finally, EverSource Wealth Advisors LLC grew its holdings in shares of ON by 69.6% during 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. 36.39% of the stock is owned by institutional investors.

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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