ON (NYSE:ONON) Shares Gap Down – Here’s What Happened

Shares of On Holding AG (NYSE:ONON) gapped down prior to trading on Tuesday . The stock had previously closed at $46.76, but opened at $41.04. ON shares last traded at $41.0140, with a volume of 4,273,770 shares.

ON News Roundup

Here are the key news stories impacting ON this week:

• Positive Sentiment: Q4 results beat expectations — ON reported Q4 EPS and revenue above consensus and delivered 22.6% y/y revenue growth; margins and profitability improved. Q4 Earnings Summary
• Positive Sentiment: Record full‑year sales and margin strength — On topped CHF 3.0 billion in 2025 sales and reported record margins, signaling robust demand and operating leverage. CNBC: Record Sales
• Positive Sentiment: Analyst upside and reaffirmations — Several sell‑side analysts maintain bullish views; mean analyst price targets imply ~28% upside and Telsey reaffirmed an “outperform” with a $65 PT. Zacks: Analyst Upside
• Neutral Sentiment: Heavy options activity — Unusually large call buying was reported ahead of results, showing speculative/hedged bullish interest that can amplify moves in either direction. Kalkine: Call Surge
• Neutral Sentiment: Full earnings materials and call transcript available — Investors can review the earnings call transcript and 20‑F filing for more detail on assumptions behind guidance. Earnings Call Transcript
• Negative Sentiment: Guidance disappointed — ON issued FY‑2026 revenue guidance of about $4.3B versus Street ~$4.6B, and management signaled slower growth in 2026; that miss on top‑line outlook is the primary driver of the sharp selloff. Seeking Alpha: Guidance Reaction
• Negative Sentiment: Market reaction and volume spike — Shares tumbled on the guidance miss with volume well above average, indicating broad investor selling and short‑term re‑pricing of growth expectations. MSN: Stock Plunge

Analysts Set New Price Targets

A number of equities analysts have recently issued reports on the stock. KeyCorp dropped their price objective on shares of ON from $68.00 to $58.00 and set an “overweight” rating for the company in a research note on Thursday, January 22nd. JPMorgan Chase & Co. increased their price target on shares of ON from $71.00 to $75.00 and gave the stock an “overweight” rating in a research report on Thursday, November 13th. Morgan Stanley lifted their price objective on ON from $65.00 to $70.00 and gave the company an “overweight” rating in a report on Thursday, November 13th. Williams Trading lowered ON from a “buy” rating to a “hold” rating and lowered their price objective for the company from $55.00 to $47.00 in a research note on Thursday, January 8th. Finally, Barclays cut their target price on ON from $69.00 to $60.00 and set an “overweight” rating for the company in a research report on Thursday, November 13th. Three research analysts have rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating, two have assigned a Hold rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average price target of $59.86.

ON Stock Down 8.6%

The firm has a market capitalization of $26.83 billion, a price-to-earnings ratio of 55.14, a P/E/G ratio of 1.39 and a beta of 2.15. The firm has a fifty day moving average price of $46.39 and a 200 day moving average price of $44.44. The company has a current ratio of 2.55, a quick ratio of 2.05 and a debt-to-equity ratio of 0.28.

ON (NYSE:ONON) last released its quarterly earnings results on Tuesday, March 3rd. The company reported $0.32 earnings per share for the quarter, beating analysts’ consensus estimates of $0.26 by $0.06. The firm had revenue of $937.29 million during the quarter, compared to analysts’ expectations of $727.55 million. ON had a return on equity of 14.81% and a net margin of 7.45%.The business’s revenue was up 22.6% on a year-over-year basis. During the same period last year, the firm posted $0.33 EPS. Sell-side analysts anticipate that On Holding AG will post 0.66 EPS for the current fiscal year.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Platinum Paramount Investment LTD. acquired a new stake in ON in the 4th quarter valued at about $525,784,000. MidFirst Bank acquired a new stake in shares of ON in the fourth quarter valued at approximately $1,737,000. Kovitz Investment Group Partners LLC raised its position in ON by 1.2% in the 4th quarter. Kovitz Investment Group Partners LLC now owns 131,358 shares of the company’s stock worth $6,106,000 after purchasing an additional 1,590 shares during the last quarter. Invesco Ltd. raised its position in ON by 25.0% in the 4th quarter. Invesco Ltd. now owns 196,385 shares of the company’s stock worth $9,128,000 after purchasing an additional 39,295 shares during the last quarter. Finally, Corient Private Wealth LLC lifted its holdings in ON by 35.7% during the 4th quarter. Corient Private Wealth LLC now owns 29,310 shares of the company’s stock worth $1,338,000 after buying an additional 7,713 shares in the last quarter. Institutional investors and hedge funds own 36.39% of the company’s stock.

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.