ON (NYSE:ONON) Hits New 12-Month Low Following Weak Earnings

On Holding AG (NYSE:ONON)’s stock price hit a new 52-week low on Tuesday following a weaker than expected earnings announcement. The company traded as low as $30.11 and last traded at $30.8750, with a volume of 9164567 shares. The stock had previously closed at $38.78.

The company reported $0.35 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.42 by ($0.07). The company had revenue of $1.05 billion for the quarter, compared to analyst estimates of $1.09 billion. ON had a return on equity of 23.94% and a net margin of 12.09%.The business’s revenue for the quarter was up 13.5% compared to the same quarter last year. During the same period last year, the company posted ($0.09) earnings per share.

Key Stories Impacting ON

Here are the key news stories impacting ON this week:

• Positive Sentiment: On reported 13.5% year-over-year revenue growth, while direct-to-consumer sales increased 26% and represented 45.7% of total sales. Gross margin expanded to 65.4%, and management raised its full-year gross-margin outlook to at least 65.0%. On Holding Q2 Earnings Miss Estimates, FY’26 Margin Outlook Raised
• Positive Sentiment: Several analysts continue to view ONON favorably after the selloff. Stifel Nicolaus, UBS Group and Telsey Advisory Group retained buy or outperform ratings, with revised targets of $41, $73 and $43, respectively. Robert W. Baird also maintained an outperform rating with a $55 target. The revised targets imply substantial upside, although they reflect significant reductions from prior forecasts.
• Positive Sentiment: Management continues to target approximately 20% full-year 2026 sales growth and expects revenue of roughly $4.4 billion to $4.5 billion, while international expansion and category growth remain longer-term catalysts.

Analyst Upgrades and Downgrades

Several equities analysts have recently commented on the stock. UBS Group dropped their target price on shares of ON from $83.00 to $73.00 and set a “buy” rating for the company in a research report on Wednesday. Needham & Company LLC reduced their price target on shares of ON from $45.00 to $37.00 and set a “buy” rating on the stock in a research report on Tuesday. Evercore set a $40.00 price objective on shares of ON in a research note on Wednesday. Barclays lowered their price objective on shares of ON from $46.00 to $42.00 and set an “overweight” rating for the company in a research report on Wednesday. Finally, Sanford C. Bernstein restated an “outperform” rating and set a $62.00 target price on shares of ON in a research note on Wednesday. One investment analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $48.57.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the business. Caitlin John LLC bought a new stake in shares of ON during the 4th quarter valued at approximately $25,000. Cullen Frost Bankers Inc. increased its position in ON by 639.7% during the 4th quarter. Cullen Frost Bankers Inc. now owns 540 shares of the company’s stock worth $25,000 after purchasing an additional 467 shares in the last quarter. MidAtlantic Capital Management Inc. acquired a new position in ON during the 4th quarter worth approximately $27,000. Caitong International Asset Management Co. Ltd lifted its stake in ON by 555.1% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 701 shares of the company’s stock valued at $33,000 after purchasing an additional 594 shares during the last quarter. Finally, EverSource Wealth Advisors LLC lifted its stake in 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. Institutional investors and hedge funds own 36.39% of the company’s stock.

ON Price Performance

The company has a debt-to-equity ratio of 0.26, a current ratio of 2.98 and a quick ratio of 2.39. The stock has a market cap of $19.85 billion, a price-to-earnings ratio of 21.16, a price-to-earnings-growth ratio of 0.57 and a beta of 2.12. The business’s 50-day simple moving average is $37.04 and its two-hundred day simple moving average is $38.70.

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.