ON (NYSE:ONON) Shares Break Above 200 Day Moving Average – What’s Next?

On Holding AG (NYSE:ONON) passed above its 200-day moving average during trading on Wednesday. The stock has a 200-day moving average of $36.59 and traded as high as $39.09. ON shares last traded at $38.52, with a volume of 15,782,934 shares traded.

ON News Roundup

Here are the key news stories impacting ON this week:

• Positive Sentiment: Wells Fargo initiated coverage with an Overweight rating and a $48 price target, citing potential upside for the shares. Wells Fargo coverage
• Positive Sentiment: Wells Fargo’s view that “Nike’s pain is On’s gain” reinforces the prospect that competitive challenges at Nike could benefit On. Nike’s pain is On’s gain—Wells Fargo
• Positive Sentiment: UBS backing and a separate report of a “Moderate Buy” consensus indicate continued analyst support, although the UBS headline also points to subdued earnings expectations. ON Holding gets UBS backing despite muted earnings expectations Wall Street analysts rate ONON Moderate Buy
• Negative Sentiment: A Zacks preview said ONON lacked key factors associated with a likely earnings beat, raising the risk of disappointment around its upcoming report. On Holding reports next week: What awaits?

Wall Street Analysts Forecast Growth

ONON has been the subject of several recent analyst reports. JPMorgan Chase & Co. upped their price objective 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. Wolfe Research initiated coverage on shares of ON in a report on Wednesday, October 21st. They issued an “outperform” rating and a $47.00 target price on the stock. Barclays boosted their target price on shares of ON from $42.00 to $44.00 and gave the company an “overweight” rating in a research report on Thursday, September 24th. KeyCorp reaffirmed an “overweight” rating on shares of ON in a report on Monday, September 28th. Finally, Stifel Nicolaus reduced their price target on shares of ON from $60.00 to $41.00 and set a “buy” rating on the stock in a research report on Wednesday, August 12th. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-three have issued a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $43.73.

ON Stock Performance

The company has a debt-to-equity ratio of 0.25, a current ratio of 2.83 and a quick ratio of 2.25. The stock has a 50-day simple moving average of $31.17 and a 200-day simple moving average of $36.59. The stock has a market cap of $24.58 billion, a P/E ratio of 26.20, a PEG ratio of 0.72 and a beta of 2.05.

ON (NYSE:ONON) last posted its earnings results on Tuesday, August 11th. The company reported $0.35 EPS for the quarter, missing analysts’ consensus estimates of $0.42 by ($0.07). ON had a return on equity of 22.92% and a net margin of 12.09%. The company had revenue of $1.05 billion during the quarter, compared to the consensus estimate of $1.09 billion. During the same period last year, the company posted ($0.09) EPS. The firm’s revenue was up 13.5% compared to the same quarter last year. Research analysts forecast that On Holding AG will post 1.50 earnings per share for the current year.

Insider Buying and Selling at ON

In other news, CEO Caspar Coppetti acquired 65,000 shares of the business’s stock in a transaction that occurred on Friday, August 14th. The shares were bought at an average price of $30.67 per share, with a total value of $1,993,550.00. Following the acquisition, the chief executive officer directly 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 acquisition was disclosed in a filing with the SEC, which is available through this hyperlink. Also, insider Olivier Bernhard acquired 65,000 shares of ON stock in a transaction that occurred on 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 transaction, the insider directly owned 5,228,184 shares in the company, valued at $160,348,403.28. The trade was a 1.26% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. 68.57% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On ON

Large investors have recently bought and sold shares of the company. Lido Advisors LLC grew its stake in shares of ON by 1.6% in the third quarter. Lido Advisors LLC now owns 29,063 shares of the company’s stock worth $861,000 after purchasing an additional 459 shares during the last quarter. Hohimer Wealth Management LLC acquired a new stake in ON in the third quarter valued at $1,113,000. J. Derek Lewis & Associates Inc. bought a new position in ON during the 3rd quarter worth $227,000. Pictet Asset Management Holding SA raised its position in ON by 116.8% during the 3rd quarter. Pictet Asset Management Holding SA now owns 1,741,829 shares of the company’s stock worth $51,571,000 after purchasing an additional 938,285 shares during the last quarter. Finally, CenterBook Partners LP acquired a new position in ON during the 3rd quarter worth about $211,000. 36.39% of the stock is currently owned by institutional investors.

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.