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

Key Points

• On Holding shares fell to a new 52-week low of $27.29, below its 50-day and 200-day moving averages, after the company’s latest quarterly earnings and revenue came in below analyst expectations.
• Despite the decline, analysts maintain a generally positive outlook: the stock has a “Moderate Buy” consensus rating and an average price target of $48.57, although several firms recently lowered their targets.
• Company insiders showed confidence by purchasing 65,000 shares each, while institutional investors and hedge funds own 36.39% of the stock.

On Holding AG (NYSE:ONON - Get Free Report)'s share price hit a new 52-week low on Tuesday . The stock traded as low as $27.29 and last traded at $27.2050, with a volume of 1255931 shares. The stock had previously closed at $27.99.

Analyst Upgrades and Downgrades

Several equities research analysts recently commented on the company. KeyCorp reaffirmed an "overweight" rating on shares of ON in a report on Monday, August 10th. Evercore set a $40.00 price objective on ON in a research note on Wednesday, August 12th. Wall Street Zen downgraded ON from a "buy" rating to a "hold" rating in a research note on Saturday, July 18th. Telsey Advisory Group reduced their price target on ON from $51.00 to $43.00 and set an "outperform" rating on the stock in a report on Wednesday, August 12th. Finally, Truist Financial reduced their price target on shares of ON from $48.00 to $40.00 and set a "buy" rating on the stock in a research report on Tuesday, August 11th. One research analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, four have given a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $48.57.

ON Price Performance

The company has a current ratio of 2.83, a quick ratio of 2.25 and a debt-to-equity ratio of 0.25. The stock has a market cap of $17.33 billion, a PE ratio of 18.49, a P/E/G ratio of 0.57 and a beta of 2.08. The company has a fifty day moving average of $34.16 and a 200-day moving average of $36.74.

ON (NYSE:ONON - Get Free Report) last posted its 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 return on equity of 22.92% and a net margin of 12.09%.ON's revenue was up 13.5% on a year-over-year basis. During the same period in the previous year, the company posted ($0.09) EPS. Sell-side analysts expect that On Holding AG will post 1.47 EPS for the current fiscal year.

Insider Buying and Selling at ON

In other ON news, CEO Caspar Coppetti acquired 65,000 shares of the company's stock in a transaction dated Friday, August 14th. The shares were acquired at an average price of $30.67 per share, for a total transaction of $1,993,550.00. Following the acquisition, 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 purchase was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, insider Olivier Bernhard acquired 65,000 shares of the company'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 acquisition, the insider owned 5,228,184 shares in the company, valued at approximately $160,348,403.28. The trade was a 1.26% increase in their position. The SEC filing for this purchase provides additional information.

Hedge Funds Weigh In On ON

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Cullen Frost Bankers Inc. grew its position in shares of 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 buying an additional 467 shares during the last quarter. Caitlin John LLC acquired a new position in shares of ON in the fourth quarter valued at approximately $25,000. EverSource Wealth Advisors LLC increased its stake in 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 position in ON during the fourth quarter worth about $27,000. Finally, Caitong International Asset Management Co. Ltd raised its stake in shares of ON by 555.1% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 701 shares of the company's stock worth $33,000 after buying an additional 594 shares in the last quarter. 36.39% of the stock is 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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