ON (NYSE:ONON) Shares Gap Down – Time to Sell?

On Holding AG (NYSE:ONON)’s share price gapped down prior to trading on Tuesday. The stock had previously closed at $37.53, but opened at $34.72. ON shares last traded at $34.60, with a volume of 4,423,963 shares changing hands.

Key ON News

Here’s some of the latest news about ONON:

• Positive Sentiment: On reported third-quarter revenue of CHF 931.4 million, up 17.2% year over year, and earnings above analysts’ expectations. Direct-to-consumer sales grew 25%, while apparel revenue and Asia-Pacific sales also showed strength. Article
• Positive Sentiment: The company raised its 2026 comparable gross-margin outlook to about 66% and expects fourth-quarter growth to accelerate. Article
• Neutral Sentiment: Analyst revisions were mixed: UBS lowered its target to $65 but kept a Buy rating, while Barclays cut its target to $42 and Goldman Sachs lowered its target to $41. Article

Analysts Set New Price Targets

A number of brokerages recently commented on ONON. Wells Fargo & Company started coverage on shares of ON in a research report on Wednesday, November 4th. They issued an “overweight” rating and a $48.00 target price on the stock. BTIG Research restated a “buy” rating and set a $60.00 price target on shares of ON in a research report on Tuesday, November 3rd. Needham & Company LLC raised their price objective on ON from $37.00 to $40.00 and gave the company a “buy” rating in a research note on Wednesday, September 23rd. William Blair downgraded ON from an “outperform” rating to a “market perform” rating in a report on Tuesday, August 11th. Finally, Morgan Stanley boosted their target price on ON from $39.00 to $43.00 and gave the company an “overweight” rating in a research note on Wednesday. Two research analysts have rated the stock with a Strong Buy rating, twenty-three have issued a Buy rating, five have given a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, ON currently has a consensus rating of “Moderate Buy” and an average price target of $43.82.

ON Stock Performance

The company’s 50-day moving average price is $31.93 and its 200 day moving average price is $36.35. The stock has a market capitalization of $22.19 billion, a PE ratio of 21.20, a PEG ratio of 0.69 and a beta of 2.05. The company has a debt-to-equity ratio of 0.25, a quick ratio of 2.25 and a current ratio of 2.83.

ON (NYSE:ONON) last announced its quarterly earnings results on Tuesday, November 10th. The company reported $0.65 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.47 by $0.18. ON had a net margin of 12.41% and a return on equity of 23.62%. The company had revenue of $1.11 billion for the quarter, compared to analysts’ expectations of $1.11 billion. During the same quarter in the previous year, the company earned $0.43 earnings per share. ON’s quarterly revenue was up 17.2% on a year-over-year basis. On average, equities research analysts expect that On Holding AG will post 1.50 earnings per share for the current fiscal year.

Insider Activity at ON

In other news, insider Olivier Bernhard bought 65,000 shares of ON stock in a transaction on Friday, August 14th. The shares were purchased at an average price of $30.67 per share, for a total transaction of $1,993,550.00. Following the acquisition, the insider owned 5,228,184 shares of the company’s stock, valued at approximately $160,348,403.28. The trade was a 1.26% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CEO Caspar Coppetti bought 65,000 shares of the firm’s stock in a transaction dated Friday, August 14th. The stock was purchased at an average cost of $30.67 per share, with a total value 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 represents a 2.74% increase in their position. The SEC filing for this purchase provides additional information. Insiders own 68.57% of the company’s stock.

Hedge Funds Weigh In On ON

Institutional investors have recently added to or reduced their stakes in the company. Allworth Financial LP boosted its holdings in shares of ON by 6.3% during the 3rd quarter. Allworth Financial LP now owns 4,671 shares of the company’s stock valued at $138,000 after buying an additional 277 shares in the last quarter. EverSource Wealth Advisors LLC increased 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 worth $26,000 after acquiring an additional 312 shares in the last quarter. Signaturefd LLC increased its stake in shares of ON by 29.5% in the 3rd quarter. Signaturefd LLC now owns 1,598 shares of the company’s stock worth $47,000 after acquiring an additional 364 shares in the last quarter. City Center Advisors LLC increased its stake in shares of ON by 5.2% in the 3rd quarter. City Center Advisors LLC now owns 8,675 shares of the company’s stock worth $257,000 after acquiring an additional 429 shares in the last quarter. Finally, Glenmede Trust Co. NA lifted its position in ON by 6.1% during the 1st quarter. Glenmede Trust Co. NA now owns 7,592 shares of the company’s stock valued at $258,000 after acquiring an additional 439 shares during the period. Institutional investors own 36.39% of the company’s stock.

ON Company Profile

On Holding AG, which trades on the New York Stock Exchange under the symbol ONON, is a Swiss sportswear company that develops and sells performance footwear, apparel and accessories. Its products serve runners and other athletes, as well as consumers seeking athletic-inspired everyday wear. The company is known for its running shoes, which feature its CloudTec cushioning technology. On also offers apparel and equipment for activities including running, training and outdoor sports, selling through wholesale partners and its own retail and online channels.