ON (NYSE:ONON) Cut to Market Perform at William Blair

William Blair downgraded shares of ON (NYSE:ONON) from an outperform rating to a market perform rating in a report published on Tuesday, Marketbeat.com reports.

Other equities research analysts also recently issued research reports about the company. KeyCorp reaffirmed an “overweight” rating on shares of ON in a report on Monday. Zacks Research downgraded ON from a “strong-buy” rating to a “hold” rating in a research report on Wednesday, August 5th. Raymond James Financial upgraded ON from an “outperform” rating to a “strong-buy” rating and set a $52.00 target price on the stock in a research report on Thursday, April 23rd. Evercore reissued an “outperform” rating and set a $46.00 target price on shares of ON in a research note on Friday, August 7th. Finally, JPMorgan Chase & Co. started coverage on shares of ON in a report on Thursday, July 2nd. They issued an “overweight” rating and a $51.00 target price for the company. One investment analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $48.57.

ON Trading Up 1.7%

ONON opened at $31.53 on Tuesday. ON has a twelve month low of $30.11 and a twelve month high of $51.08. The company has a 50-day simple moving average of $36.92 and a 200 day simple moving average of $38.60. The company has a quick ratio of 2.39, a current ratio of 2.98 and a debt-to-equity ratio of 0.26. The stock has a market capitalization of $20.12 billion, a price-to-earnings ratio of 21.45, a P/E/G ratio of 0.57 and a beta of 2.12.

ON (NYSE:ONON) last issued its quarterly earnings results on Tuesday, August 11th. The company reported $0.35 earnings per share for the quarter, missing analysts’ consensus estimates of $0.42 by ($0.07). The firm had revenue of $1.05 billion for the quarter, compared to the consensus estimate of $1.09 billion. ON had a return on equity of 23.94% and a net margin of 12.09%.The business’s revenue was up 13.5% on a year-over-year basis. During the same period last year, the company posted ($0.09) EPS. Analysts predict that ON will post 1.51 EPS for the current fiscal year.

Institutional Trading of ON

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Jacobi Capital Management LLC increased its stake in shares of ON by 3.6% in the fourth quarter. Jacobi Capital Management LLC now owns 6,875 shares of the company’s stock valued at $320,000 after buying an additional 240 shares during the period. Parallel Advisors LLC boosted its holdings in ON by 2.8% in the fourth quarter. Parallel Advisors LLC now owns 10,455 shares of the company’s stock valued at $486,000 after acquiring an additional 285 shares during the last quarter. J.W. Cole Advisors Inc. increased its position in ON by 2.4% during the 4th quarter. J.W. Cole Advisors Inc. now owns 12,283 shares of the company’s stock valued at $571,000 after purchasing an additional 285 shares during the period. MetLife Investment Management LLC raised its holdings in ON by 2.2% during the 4th quarter. MetLife Investment Management LLC now owns 14,411 shares of the company’s stock worth $670,000 after purchasing an additional 308 shares during the last quarter. Finally, EverSource Wealth Advisors LLC boosted its stake in shares of ON by 69.6% in the 1st quarter. EverSource Wealth Advisors LLC now owns 760 shares of the company’s stock valued at $26,000 after purchasing an additional 312 shares during the last quarter. 36.39% of the stock is currently owned by institutional investors and hedge funds.

Key Stories Impacting ON

Here are the key news stories impacting ON this week:

• Positive Sentiment: Some investors see an opportunity after the sharp decline. On Holding continues to deliver double-digit revenue growth, expanded margins, strong liquidity and healthy long-term brand demand. The company’s direct-to-consumer strategy and international expansion could support a recovery if wholesale sales stabilize. On Holding’s Price Stumble May Be an Opening for a Company Built to Run
• Positive Sentiment: Despite reducing their forecasts, Stifel, UBS, Telsey Advisory Group and Robert W. Baird retained bullish ratings, with price targets still materially above the current share price. This may be helping fuel dip-buying and a partial rebound. Analyst price-target updates
• Neutral Sentiment: Analysts are reassessing On Holding’s valuation and growth trajectory following the quarterly report. Target reductions were substantial, but several firms continue to rate the stock Buy or Outperform, indicating a divided view on whether the weakness is temporary or structural.
• Negative Sentiment: The primary catalyst for the selloff was mixed second-quarter performance: revenue of approximately $1.05 billion missed expectations near $1.09 billion, while earnings per share of $0.35 came in below the consensus estimate of $0.42. Management also trimmed guidance, raising concerns about slowing sales growth. On Holding Just Had Its Worst Trading Day Ever
• Negative Sentiment: The wholesale channel slowed, while foreign-exchange effects added pressure. The resulting guidance reset caused the stock’s largest-ever one-day decline, with exceptionally heavy trading volume, and prompted a broad wave of lower price targets. On Shares Fall Sharply After Wholesale Slowdown in Q2

About ON

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.