ON (NYSE:ONON) Sets New 1-Year Low - Time to Sell?

Key Points

• On Holding shares fell to a new 52-week low of $27.97, below both its 50-day moving average of $34.98 and 200-day average of $37.35.
• Analysts recently reduced several price targets, but the stock retains a consensus “Moderate Buy” rating with an average target of $48.57.
• The company missed quarterly expectations, reporting EPS of $0.35 versus $0.42 expected and revenue of $1.05 billion versus $1.09 billion; however, revenue still increased 13.5% year over year. Two insiders, including the CEO, each purchased 65,000 shares at $30.67.

On Holding AG (NYSE:ONON - Get Free Report) shares reached a new 52-week low during mid-day trading on Tuesday . The stock traded as low as $27.97 and last traded at $27.9820, with a volume of 512523 shares trading hands. The stock had previously closed at $28.50.

Analyst Ratings Changes

A number of equities analysts recently issued reports on the stock. Telsey Advisory Group decreased their price target on shares of ON from $51.00 to $43.00 and set an "outperform" rating for the company in a research note on Wednesday, August 12th. Robert W. Baird cut their price objective on ON from $70.00 to $55.00 and set an "outperform" rating for the company in a research report on Wednesday, August 12th. Williams Trading set a $32.00 target price on ON in a report on Tuesday, August 11th. Wall Street Zen downgraded ON from a "buy" rating to a "hold" rating in a report on Saturday, July 18th. Finally, UBS Group lowered their target price on ON from $83.00 to $73.00 and set a "buy" rating for the company in a report on Wednesday, August 12th. One equities research analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of $48.57.

ON Stock Down 1.7%

The business has a fifty day moving average price of $34.98 and a two-hundred day moving average price of $37.35. 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 firm has a market capitalization of $17.87 billion, a price-to-earnings ratio of 19.07, a price-to-earnings-growth ratio of 0.59 and a beta of 2.12.

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). 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 last year, the firm posted ($0.09) earnings per share. The firm's quarterly revenue was up 13.5% on a year-over-year basis. On average, equities analysts expect that On Holding AG will post 1.47 earnings per share for the current year.

Insider Activity

In related news, insider Olivier Bernhard purchased 65,000 shares of the business's stock in a transaction dated Friday, August 14th. The stock was acquired at an average price of $30.67 per share, for a total transaction of $1,993,550.00. Following the completion of the purchase, the insider directly owned 5,228,184 shares of the company's stock, valued at $160,348,403.28. This trade represents a 1.26% increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Caspar Felix Coppetti acquired 65,000 shares of the company's stock in a transaction on 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 purchase, the chief executive officer directly owned 2,440,855 shares in the company, valued at $74,861,022.85. This trade represents a 2.74% increase in their position. The disclosure for this purchase is available in the SEC filing.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in the company. Cullen Frost Bankers Inc. boosted its holdings in ON by 639.7% in 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. Caitlin John LLC acquired a new stake in shares of ON in the 4th quarter valued at approximately $25,000. EverSource Wealth Advisors LLC lifted its holdings 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 buying an additional 312 shares during the period. MidAtlantic Capital Management Inc. purchased a new stake in shares of ON in the fourth quarter valued at approximately $27,000. Finally, Caitong International Asset Management Co. Ltd grew its holdings in ON by 555.1% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 701 shares of the company's stock worth $33,000 after acquiring an additional 594 shares during the period. 36.39% of the stock is currently owned by institutional investors and hedge funds.

ON Company Profile

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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