ON (NYSE:ONON) Shares Gap Down - Should You Sell?

Key Points

• ON Holding shares fell 3%, opening at $31.90 versus a prior close of $33.17, with the stock last trading near $32.22.
• Analysts remain broadly optimistic, with a consensus “Moderate Buy” rating and an average price target of $43.48, despite the recent decline.
• The company recently missed quarterly expectations, reporting $0.35 in EPS versus $0.42 expected and revenue of $1.05 billion versus $1.09 billion projected; meanwhile, two insiders each purchased 65,000 shares.

On Holding AG (NYSE:ONON - Get Free Report) gapped down prior to trading on Tuesday. The stock had previously closed at $33.17, but opened at $31.90. ON shares last traded at $32.2240, with a volume of 2,480,764 shares traded.

Analysts Set New Price Targets

A number of research firms have weighed in on ONON. Barclays upped their price target on ON from $42.00 to $44.00 and gave the stock an "overweight" rating in a report on Thursday, September 24th. Williams Trading set a $32.00 price objective on shares of ON in a research note on Tuesday, August 11th. JPMorgan Chase & Co. boosted their target price on shares of ON from $41.00 to $44.00 and gave the stock an "overweight" rating in a research report on Thursday, October 1st. UBS Group restated a "buy" rating on shares of ON in a research note on Wednesday, September 23rd. Finally, Morgan Stanley started coverage on shares of ON in a report on Thursday, September 10th. They set an "overweight" rating and a $39.00 price target for the company. Two investment analysts have rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating, five have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $43.48.

ON Trading Down 3.0%

The firm has a market cap of $20.52 billion, a P/E ratio of 21.89, a P/E/G ratio of 0.64 and a beta of 2.08. The business's 50-day moving average is $30.58 and its two-hundred day moving average is $37.06. 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 released its quarterly earnings data on Tuesday, August 11th. The company reported $0.35 earnings per share (EPS) for the quarter, missing analysts' consensus estimates 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 for the quarter, compared to analyst estimates of $1.09 billion. During the same quarter in the prior year, the firm earned ($0.09) EPS. The company's revenue for the quarter was up 13.5% compared to the same quarter last year. As a group, analysts expect that On Holding AG will post 1.50 earnings per share for the current fiscal year.

Insider Activity

In related news, CEO Caspar Coppetti 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 price of $30.67 per share, with a total value of $1,993,550.00. Following the purchase, the chief executive officer owned 2,440,855 shares of the company's stock, valued at $74,861,022.85. This trade represents a 2.74% increase in their position. The acquisition was disclosed in a document filed with the SEC, which is available at the SEC website. Also, insider Olivier Bernhard purchased 65,000 shares of the business's stock in a transaction dated Friday, August 14th. The shares were purchased at an average price of $30.67 per share, for a total transaction of $1,993,550.00. Following the acquisition, 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 disclosure for this purchase is available in the SEC filing.

Institutional Investors Weigh In On ON

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in ONON. EverSource Wealth Advisors LLC grew its position in ON by 69.6% in the first quarter. EverSource Wealth Advisors LLC now owns 760 shares of the company's stock worth $26,000 after acquiring an additional 312 shares in the last quarter. Ascentis Independent Advisors bought a new position in shares of ON during the 1st quarter valued at $34,000. Guardian Partners Inc. bought a new position in shares of ON during the 3rd quarter valued at $41,000. Signaturefd LLC raised its holdings in shares of ON by 29.5% during the 3rd quarter. Signaturefd LLC now owns 1,598 shares of the company's stock valued at $47,000 after purchasing an additional 364 shares in the last quarter. Finally, State of Wyoming lifted its stake in shares of ON by 132.6% in the 1st quarter. State of Wyoming now owns 4,508 shares of the company's stock valued at $153,000 after purchasing an additional 2,570 shares during the last quarter. Hedge funds and other institutional investors own 36.39% of the company's stock.

About ON

On Holding AG, commonly known as On, is a Swiss sportswear company that develops and sells performance footwear, apparel and accessories. The company serves athletes and everyday consumers with products designed for running, training, outdoor activities and lifestyle use.

On is best known for its running shoes, which incorporate proprietary technologies such as CloudTec cushioning and the Speedboard propulsion system. Its product portfolio also includes athletic clothing, outerwear and accessories.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.