ON (NYSE:ONON) Reaches New 1-Year Low – Here’s Why

On Holding AG (NYSE:ONON) shares hit a new 52-week low on Thursday . The stock traded as low as $26.42 and last traded at $26.4420, with a volume of 1694596 shares traded. The stock had previously closed at $27.15.

ON News Roundup

Here are the key news stories impacting ON this week:

• Positive Sentiment: Kylian Mbappé partnership boosts global visibility. On signed French football superstar Kylian Mbappé, marking a major expansion into football and giving the Swiss footwear company a prominent international ambassador. The deal is viewed as a competitive win against Nike and could support brand awareness, product sales and long-term growth. On Holding Stock Jumps as Swiss Sneaker Company Enters Football With Mbappé, Henry
• Positive Sentiment: Analysts continue to endorse the shares. Needham reaffirmed a “Buy” rating with a $37 price target, implying substantial upside from recent levels. BTIG Research and Berenberg Bank also issued or maintained “Buy” ratings, supporting the bullish case despite the stock’s recent weakness. Needham Reaffirms Buy Rating on On Holding ON Earns Buy Rating from BTIG Research
• Neutral Sentiment: Investor attention is elevated. Trading volume has been substantially above average, suggesting heightened interest around the Mbappé announcement and the stock’s technical weakness. However, elevated activity alone does not establish a lasting change in sentiment.
• Negative Sentiment: Operating concerns remain the main overhang. On Holding’s recent three-month slide reflects weak Americas wholesale trends and cautious retailer sell-in, even as direct-to-consumer sales and new product launches provide support. The company’s latest quarterly results also missed consensus estimates for both earnings and revenue. On Holding Stock Falls 30% in Three Months
• Negative Sentiment: Bearish options positioning signals caution. Traders purchased 42,982 put options, roughly 191% above the average daily volume, while the shares recently traded near two-year lows. This activity indicates that some investors are positioning for additional downside or protecting existing holdings. 3 Stocks Put Traders Are Targeting Today

Analyst Upgrades and Downgrades

Several brokerages have recently issued reports on ONON. Bank of America decreased their price objective on ON from $46.00 to $43.00 and set a “buy” rating for the company in a report on Thursday. Robert W. Baird reduced their price target on ON from $70.00 to $55.00 and set an “outperform” rating for the company in a research report on Wednesday, August 12th. BTIG Research reissued a “buy” rating and issued a $60.00 price target on shares of ON in a report on Wednesday. Capital One Financial set a $28.00 price objective on ON in a research report on Tuesday, September 8th. Finally, Truist Financial dropped their price objective on shares of ON from $48.00 to $40.00 and set a “buy” rating on the stock in a research note on Tuesday, August 11th. Two research analysts have rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, five have assigned a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $43.92.

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 firm has a fifty day simple moving average of $32.45 and a 200 day simple moving average of $35.53. The company has a market capitalization of $17.39 billion, a price-to-earnings ratio of 18.54, a price-to-earnings-growth ratio of 0.55 and a beta of 2.08.

ON (NYSE:ONON) last announced its earnings results 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 return on equity of 22.92% and a net margin of 12.09%.The business had revenue of $1.05 billion for the quarter, compared to analyst estimates of $1.09 billion. During the same period in the previous year, the company earned ($0.09) earnings per share. The company’s quarterly revenue was up 13.5% compared to the same quarter last year. On average, analysts anticipate that On Holding AG will post 1.49 earnings per share for the current fiscal year.

Insider Buying and Selling at ON

In related news, CEO Caspar Coppetti purchased 65,000 shares of ON stock in a transaction that occurred on Friday, August 14th. The stock was purchased at an average price of $30.67 per share, for a total transaction of $1,993,550.00. Following the transaction, the chief executive officer directly owned 2,440,855 shares in the company, valued at approximately $74,861,022.85. This trade represents a 2.74% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which is available through the SEC website. Also, insider Olivier Bernhard acquired 65,000 shares of the stock in a transaction that occurred on Friday, August 14th. The stock was purchased at an average price of $30.67 per share, for a total transaction of $1,993,550.00. Following the completion of the acquisition, the insider owned 5,228,184 shares in the company, valued at $160,348,403.28. The trade was a 1.26% increase in their position. The disclosure for this purchase is available in the SEC filing. Company insiders own 68.57% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Cullen Frost Bankers Inc. grew its holdings in shares of ON by 639.7% during the fourth quarter. Cullen Frost Bankers Inc. now owns 540 shares of the company’s stock worth $25,000 after buying an additional 467 shares in the last quarter. MidAtlantic Capital Management Inc. purchased a new position in shares of ON in the fourth quarter worth about $27,000. EverSource Wealth Advisors LLC boosted its position in ON by 69.6% during the first quarter. EverSource Wealth Advisors LLC now owns 760 shares of the company’s stock worth $26,000 after acquiring an additional 312 shares during the last quarter. TD Private Client Wealth LLC boosted its position in ON by 109.9% during the fourth quarter. TD Private Client Wealth LLC now owns 804 shares of the company’s stock worth $37,000 after acquiring an additional 421 shares during the last quarter. Finally, Ascentis Independent Advisors purchased a new stake in ON during the 1st quarter valued at about $34,000. Hedge funds and other institutional investors own 36.39% of the company’s stock.

About ON

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.