Stock Traders Buy Large Volume of ON Call Options (NYSE:ONON)

Key Points

• Unusual options activity: Traders purchased 14,282 ON call options, about 49% above the average volume. ON shares rose 3.2% to $38.73.
• Strong quarterly results and insider buying: On Holding reported $0.46 in quarterly EPS versus the $0.35 consensus estimate, while revenue increased 14.5% year over year to $1.04 billion. Company insiders bought 180,000 shares worth approximately $6.6 million during the last quarter.
• Analysts remain broadly bullish: ON has a consensus “Moderate Buy” rating and an average price target of $53.84, despite several analysts recently lowering their targets.

On Holding AG (NYSE:ONON - Get Free Report) was the recipient of some unusual options trading activity on Monday. Stock traders acquired 14,282 call options on the stock. This represents an increase of approximately 49% compared to the average volume of 9,607 call options.

ON Stock Up 3.2%

NYSE ONON traded up $1.18 during trading on Monday, hitting $38.73. 4,198,159 shares of the company traded hands, compared to its average volume of 5,723,767. ON has a 12 month low of $31.41 and a 12 month high of $52.20. The business has a fifty day simple moving average of $37.33 and a 200 day simple moving average of $38.95. The company has a current ratio of 2.98, a quick ratio of 2.39 and a debt-to-equity ratio of 0.26. The company has a market capitalization of $24.72 billion, a P/E ratio of 41.67, a PEG ratio of 0.69 and a beta of 2.12.

ON (NYSE:ONON - Get Free Report) last released its quarterly earnings results on Tuesday, May 12th. The company reported $0.46 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.35 by $0.11. ON had a return on equity of 15.72% and a net margin of 7.92%.The company had revenue of $1.04 billion during the quarter, compared to the consensus estimate of $1.03 billion. During the same quarter in the prior year, the company posted $0.21 EPS. The firm's revenue was up 14.5% on a year-over-year basis. As a group, sell-side analysts predict that ON will post 1.52 EPS for the current year.

Insider Buying and Selling at ON

In related news, CEO Caspar Felix Coppetti bought 60,000 shares of the business's stock in a transaction on Thursday, May 14th. The stock was bought at an average price of $36.64 per share, for a total transaction of $2,198,400.00. Following the transaction, the chief executive officer directly owned 2,375,855 shares in the company, valued at $87,051,327.20. This represents a 2.59% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Olivier Bernhard bought 60,000 shares of the firm's stock in a transaction on Thursday, May 14th. The shares were bought at an average cost of $36.63 per share, with a total value of $2,197,800.00. Following the purchase, the insider directly owned 5,163,184 shares in the company, valued at approximately $189,127,429.92. This trade represents a 1.18% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. In the last quarter, insiders have purchased 180,000 shares of company stock worth $6,594,000.

Hedge Funds Weigh In On ON

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Caitlin John LLC bought a new stake in shares of ON during the 4th quarter worth $25,000. Cullen Frost Bankers Inc. boosted its holdings in ON by 639.7% during the fourth quarter. Cullen Frost Bankers Inc. now owns 540 shares of the company's stock valued at $25,000 after acquiring an additional 467 shares during the period. MidAtlantic Capital Management Inc. acquired a new stake in shares of ON in the fourth quarter valued at about $27,000. Caitong International Asset Management Co. Ltd grew its position in shares of ON by 555.1% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 701 shares of the company's stock valued at $33,000 after purchasing an additional 594 shares during the last quarter. Finally, EverSource Wealth Advisors LLC increased its stake in shares of 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 purchasing an additional 312 shares during the period. Institutional investors and hedge funds own 36.39% of the company's stock.

Wall Street Analysts Forecast Growth

A number of research analysts have commented on the company. Telsey Advisory Group lowered their target price on ON from $60.00 to $51.00 and set an "outperform" rating on the stock in a research note on Wednesday, May 13th. Evercore reaffirmed an "outperform" rating and set a $46.00 price target on shares of ON in a research note on Friday. Needham & Company LLC lowered their price target on ON from $52.00 to $45.00 and set a "buy" rating for the company in a research note on Tuesday, May 12th. Truist Financial dropped their price objective on ON from $55.00 to $48.00 and set a "buy" rating on the stock in a report on Tuesday, May 12th. Finally, JPMorgan Chase & Co. assumed coverage on shares of ON in a research report on Thursday, July 2nd. They set an "overweight" rating and a $51.00 price objective on the stock. Two research analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating, four have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus price target of $53.84.

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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