ON (NYSE:ONON) Shares Gap Up - Here's What Happened

Key Points

• ON shares gapped up from a $27.33 prior close to open at $28.36, though they later traded near $27.16 on volume of roughly 4.6 million shares.
• Analysts remain broadly optimistic: Needham, BTIG Research and Berenberg reaffirmed or issued Buy ratings, while the consensus rating is “Moderate Buy” with a $43.92 price target.
• Near-term risks include weak Americas wholesale performance and a recent earnings miss, while put-option activity surged 191% above average; meanwhile, two company insiders each bought 65,000 shares at $30.67.

On Holding AG (NYSE:ONON - Get Free Report)'s share price gapped up before the market opened on Friday . The stock had previously closed at $27.33, but opened at $28.36. ON shares last traded at $27.1590, with a volume of 4,631,379 shares.

Trending Headlines about ON

Here are the key news stories impacting ON this week:

• Positive Sentiment: Needham & Company reaffirmed its Buy rating and set a $37 price target, implying approximately 36% upside from the referenced share price. Needham reaffirms Buy rating and $37 price target
• Positive Sentiment: BTIG Research also assigned or reaffirmed a Buy rating, adding to the group of analysts expressing confidence in ONON’s longer-term growth prospects. ON earns Buy rating from BTIG Research
• Positive Sentiment: Berenberg Bank issued a Buy rating, providing another positive analyst signal after the recent selloff. On Holding gets Buy rating from Berenberg Bank
• Neutral Sentiment: ONON’s direct-to-consumer mix and new product launches remain encouraging, and some analysis suggests the stock’s valuation may be becoming more reasonable after the decline. On Holding stock may look reasonable on current earnings
• Negative Sentiment: The main concern is weak Americas wholesale performance and cautious sell-in, which has contributed to the sharp three-month decline. Recent earnings also missed analyst expectations for both EPS and revenue, reinforcing concerns about near-term execution. On Holding stock falls 30% in three months
• Negative Sentiment: Put-option purchases surged to 42,982 contracts, about 191% above average volume, signaling increased hedging or bearish speculation. ONON was also identified among stocks targeted by put traders while trading near multi-year lows. Stocks targeted by put traders

Wall Street Analyst Weigh In

A number of equities analysts have weighed in on ONON shares. Capital One Financial set a $28.00 price target on ON in a research report on Tuesday, September 8th. Needham & Company LLC reiterated a "buy" rating and set a $37.00 target price on shares of ON in a research note on Friday. Williams Trading set a $32.00 price target on ON in a research note on Tuesday, August 11th. The Goldman Sachs Group set a $42.00 price objective on shares of ON in a research report on Wednesday, August 12th. Finally, William Blair cut shares of ON from an "outperform" rating to a "market perform" rating in a research note on Tuesday, August 11th. Two research analysts have rated the stock with a Strong Buy rating, eighteen have given a Buy rating, five have given a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, ON presently has a consensus rating of "Moderate Buy" and a consensus target price of $43.92.

ON Trading Up 0.5%

The firm has a market capitalization of $17.53 billion, a PE ratio of 18.70, a price-to-earnings-growth ratio of 0.54 and a beta of 2.08. The stock's 50-day moving average price is $32.68 and its 200 day moving average price is $35.59. The company has a debt-to-equity ratio of 0.25, a current ratio of 2.83 and a quick ratio of 2.25.

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 business had revenue of $1.05 billion for the quarter, compared to the consensus estimate of $1.09 billion. During the same quarter in the prior year, the business posted ($0.09) earnings per share. ON's revenue for the quarter was up 13.5% on a year-over-year basis. On average, sell-side analysts expect that On Holding AG will post 1.49 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, CEO Caspar Coppetti purchased 65,000 shares of the business's stock in a transaction that occurred 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 completion of the acquisition, the chief executive officer directly owned 2,440,855 shares of the company's stock, valued at approximately $74,861,022.85. This trade represents a 2.74% increase in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, insider Olivier Bernhard acquired 65,000 shares of the stock in a transaction on Friday, August 14th. The stock was acquired at an average cost 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 in the company, valued at $160,348,403.28. This represents a 1.26% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. 68.57% of the stock is owned by insiders.

Institutional Trading of ON

Institutional investors and hedge funds have recently made changes to their positions in the stock. Sequoia Financial Advisors LLC acquired a new position in ON in the 2nd quarter valued at about $223,000. Capital Analysts LLC increased its position in ON by 15.5% during the second quarter. Capital Analysts LLC now owns 6,049 shares of the company's stock worth $214,000 after purchasing an additional 810 shares during the last quarter. NewEdge Advisors LLC grew its position in ON by 26.8% during the second quarter. NewEdge Advisors LLC now owns 25,494 shares of the company's stock valued at $903,000 after acquiring an additional 5,394 shares during the period. TD Waterhouse Canada Inc. increased its position in ON by 44.1% during the 2nd quarter. TD Waterhouse Canada Inc. now owns 18,378 shares of the company's stock worth $654,000 after purchasing an additional 5,625 shares in the last quarter. Finally, Concurrent Investment Advisors LLC purchased a new position in shares of ON in the 2nd quarter valued at $288,000. 36.39% of the stock is currently owned by hedge funds and other institutional investors.

ON Company Profile

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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