ON (NYSE:ONON) Shares Gap Up – Should You Buy?

Shares of On Holding AG (NYSE:ONON) gapped up prior to trading 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 trading hands.

Key ON News

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

Analyst Upgrades and Downgrades

ONON has been the topic of several recent analyst reports. BTIG Research reaffirmed a “buy” rating and issued a $60.00 price target on shares of ON in a report on Wednesday. Raymond James Financial lowered ON from a “strong-buy” rating to an “outperform” rating and lowered their price target for the company from $52.00 to $38.00 in a report on Wednesday, August 12th. Wall Street Zen downgraded ON from a “buy” rating to a “hold” rating in a research report on Saturday, July 18th. Needham & Company LLC reiterated a “buy” rating and set a $37.00 price target on shares of ON in a research report on Friday. Finally, Truist Financial lowered their price objective on shares of ON from $48.00 to $40.00 and set a “buy” rating on the stock in a research note on Tuesday, August 11th. Two analysts have rated the stock with a Strong Buy rating, eighteen have given a Buy rating, five have issued a Hold rating and two have issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, ON has an average rating of “Moderate Buy” and an average price target of $43.92.

ON Stock Up 0.5%

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 firm’s fifty day moving average is $32.68 and its 200 day moving average is $35.59. The stock has a market cap of $17.53 billion, a P/E ratio of 18.70, a P/E/G ratio of 0.54 and a beta of 2.08.

ON (NYSE:ONON) last posted its quarterly earnings data on Tuesday, August 11th. The company reported $0.35 earnings per share 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 business had revenue of $1.05 billion during the quarter, compared to the consensus estimate of $1.09 billion. During the same period in the prior year, the company posted ($0.09) earnings per share. The firm’s revenue was up 13.5% compared to the same quarter last year. As a group, equities research analysts forecast that On Holding AG will post 1.49 EPS for the current year.

Insider Activity

In related news, insider Olivier Bernhard acquired 65,000 shares of the stock in a transaction dated Friday, August 14th. The shares were bought at an average cost of $30.67 per share, for a total transaction of $1,993,550.00. Following the purchase, the insider owned 5,228,184 shares in the company, valued at approximately $160,348,403.28. This trade represents a 1.26% increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, CEO Caspar Coppetti acquired 65,000 shares of the company’s stock in a transaction dated Friday, August 14th. The shares were purchased at an average cost of $30.67 per share, with a total value of $1,993,550.00. Following the acquisition, the chief executive officer owned 2,440,855 shares of the company’s stock, valued at approximately $74,861,022.85. This represents a 2.74% increase in their position. The disclosure for this purchase is available in the SEC filing. 68.57% of the stock is currently owned by insiders.

Institutional Investors Weigh In On ON

A number of institutional investors have recently made changes to their positions in the stock. Wellington Management Group LLP raised its position in ON by 2.3% during the second quarter. Wellington Management Group LLP now owns 2,751,615 shares of the company’s stock worth $97,462,000 after acquiring an additional 62,404 shares in the last quarter. One Capital Management LLC acquired a new position in ON in the 4th quarter valued at $8,887,000. Quantinno Capital Management LP boosted its holdings in ON by 89.6% in the 1st quarter. Quantinno Capital Management LP now owns 66,947 shares of the company’s stock valued at $2,278,000 after purchasing an additional 31,641 shares during the period. Norges Bank acquired a new position in ON in the 4th quarter valued at $128,826,000. Finally, Lisanti Capital Growth LLC bought a new position in ON in the 4th quarter valued at approximately $4,455,000. 36.39% of the stock is owned by institutional investors and hedge funds.

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.