ON (NYSE:ONON) Trading Up 4.3% – Time to Buy?

On Holding AG (NYSE:ONON)’s share price traded up 4.3% during trading on Wednesday . The company traded as high as $30.42 and last traded at $30.66. 5,778,521 shares were traded during mid-day trading, a decline of 13% from the average session volume of 6,662,469 shares. The stock had previously closed at $29.39.

ON News Summary

Here are the key news stories impacting ON this week:

• Positive Sentiment: Large buyback supports the stock. On Holding authorized a share-repurchase program of up to $1 billion through the end of 2029. Buybacks can increase earnings per share, provide demand for the stock and signal management’s confidence in future cash generation. Reuters report on On Holding buyback and targets
• Positive Sentiment: Long-term growth targets are ambitious. On Holding is targeting at least CHF 5.6 billion in net sales by 2029, supported by high-teens annual growth in constant-currency terms. The company is betting on continued momentum in sneakers and apparel, as well as expansion into additional sports categories. StreetInsider report on On Holding targets
• Positive Sentiment: Near-term outlook was maintained. The company confirmed its full-year outlook and provided third-quarter revenue guidance of approximately $1.2 billion, broadly in line with consensus expectations. This reduces concern about an immediate slowdown despite recent investor focus on execution. RTTNews report on On Holding guidance
• Neutral Sentiment: Analyst and investor attention has increased. Several reports highlighted ONON among consumer-cyclical and outdoor stocks, while Zacks noted that the company is attracting unusually high user interest. This may increase trading activity but does not by itself change the company’s fundamentals. Zacks analysis of On Holding
• Negative Sentiment: Execution risk remains. Reaching the 2029 targets will require sustained high growth and successful expansion into new categories. ONON also remains a volatile stock, so investors may reassess the shares if sales momentum, margins or buyback execution disappoint.

Analysts Set New Price Targets

A number of brokerages recently issued reports on ONON. Capital One Financial set a $28.00 price objective on ON in a report on Tuesday, September 8th. UBS Group reiterated a “buy” rating on shares of ON in a research report on Wednesday. Bank of America reduced their price objective on shares of ON from $46.00 to $43.00 and set a “buy” rating for the company in a research note on Thursday, September 17th. Guggenheim set a $42.00 target price on shares of ON in a report on Friday, September 11th. Finally, KeyCorp reissued an “overweight” rating on shares of ON in a report on Monday, August 10th. Two analysts have rated the stock with a Strong Buy rating, twenty have assigned a Buy rating, four have assigned a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, ON currently has a consensus rating of “Moderate Buy” and a consensus price target of $44.04.

ON Trading Up 3.1%

The company has a quick ratio of 2.25, a current ratio of 2.83 and a debt-to-equity ratio of 0.25. The firm has a market capitalization of $19.34 billion, a P/E ratio of 20.62, a price-to-earnings-growth ratio of 0.55 and a beta of 2.08. The firm’s 50-day simple moving average is $32.07 and its 200-day simple moving average is $35.24.

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 company had revenue of $1.05 billion for the quarter, compared to analysts’ expectations of $1.09 billion. During the same quarter last year, the business posted ($0.09) EPS. The business’s quarterly revenue was up 13.5% compared to the same quarter last year. Analysts anticipate that On Holding AG will post 1.49 EPS for the current year.

Insider Transactions at ON

In other news, insider Olivier Bernhard bought 65,000 shares of the business’s stock in a transaction on Friday, August 14th. The stock was acquired at an average price of $30.67 per share, with a total value of $1,993,550.00. Following the completion of the purchase, 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 ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Also, CEO Caspar Coppetti purchased 65,000 shares of ON stock in a transaction on Friday, August 14th. The shares were acquired at an average price of $30.67 per share, for a total transaction of $1,993,550.00. Following the completion of the transaction, the chief executive officer directly owned 2,440,855 shares of the company’s stock, valued at approximately $74,861,022.85. The trade was a 2.74% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure.

Hedge Funds Weigh In On ON

Institutional investors and hedge funds have recently made changes to their positions in the business. Platinum Paramount Investment LTD. bought a new stake in ON in the fourth quarter worth $525,784,000. Bamco Inc. NY grew its stake in shares of ON by 13.9% during the fourth quarter. Bamco Inc. NY now owns 5,405,486 shares of the company’s stock valued at $251,247,000 after buying an additional 658,933 shares during the last quarter. Norges Bank purchased a new position in shares of ON in the fourth quarter worth about $128,826,000. Clearbridge Investments LLC lifted its stake in shares of ON by 110.3% in the 4th quarter. Clearbridge Investments LLC now owns 2,179,978 shares of the company’s stock valued at $101,325,000 after acquiring an additional 1,143,414 shares during the last quarter. Finally, Franklin Resources Inc. lifted its stake in shares of ON by 40.5% in the 4th quarter. Franklin Resources Inc. now owns 2,126,297 shares of the company’s stock valued at $98,830,000 after acquiring an additional 613,063 shares during the last quarter. Institutional investors own 36.39% of the company’s stock.

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.