UBS Group Has Lowered Expectations for ON (NYSE:ONON) Stock Price

ON (NYSE:ONON) had its target price dropped by stock analysts at UBS Group from $83.00 to $73.00 in a report issued on Wednesday,Benzinga reports. The firm presently has a “buy” rating on the stock. UBS Group’s target price would suggest a potential upside of 134.27% from the stock’s previous close.

A number of other research analysts have also recently issued reports on ONON. Raymond James Financial cut ON from a “strong-buy” rating to an “outperform” rating and reduced their price objective for the company from $52.00 to $38.00 in a research note on Wednesday. Needham & Company LLC cut their price objective on shares of ON from $45.00 to $37.00 and set a “buy” rating on the stock in a report on Tuesday. Barclays reduced their price target on ON from $46.00 to $42.00 and set an “overweight” rating for the company in a report on Wednesday. BTIG Research lowered their price objective on ON from $70.00 to $60.00 and set a “buy” rating on the stock in a research report on Tuesday. Finally, Williams Trading set a $32.00 target price on ON in a research note on Tuesday. One research analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating, five have issued a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $49.55.

ON Trading Up 0.8%

Shares of ONON opened at $31.16 on Wednesday. The firm’s 50 day simple moving average is $37.17 and its 200 day simple moving average is $38.81. 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 company has a market capitalization of $19.88 billion, a P/E ratio of 33.53, a P/E/G ratio of 0.71 and a beta of 2.12. ON has a 1-year low of $30.11 and a 1-year high of $51.08.

ON (NYSE:ONON) last announced its earnings results on Tuesday, August 11th. The company reported $0.43 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.42 by $0.01. ON had a net margin of 7.92% and a return on equity of 15.72%. The company had revenue of $1.05 billion during the quarter, compared to analyst estimates of $1.09 billion. During the same period in the previous year, the business earned ($0.09) earnings per share. The firm’s quarterly revenue was up 13.5% compared to the same quarter last year. Sell-side analysts forecast that ON will post 1.52 earnings per share for the current fiscal year.

Insider Buying and Selling at ON

In other news, CEO Caspar Felix Coppetti purchased 60,000 shares of the stock in a transaction dated Thursday, May 14th. The shares were purchased at an average cost of $36.64 per share, with a total value of $2,198,400.00. Following the acquisition, the chief executive officer directly owned 2,375,855 shares of the company’s stock, valued at $87,051,327.20. This represents a 2.59% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, insider Olivier Bernhard purchased 60,000 shares of the company’s stock in a transaction dated Thursday, May 14th. The stock was purchased at an average price of $36.63 per share, for a total transaction of $2,197,800.00. Following the completion of the purchase, the insider owned 5,163,184 shares in the company, valued at approximately $189,127,429.92. The trade was a 1.18% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. In the last ninety days, insiders purchased 180,000 shares of company stock worth $6,594,000.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of the company. Caitlin John LLC bought a new position in shares of ON in the 4th quarter worth approximately $25,000. Cullen Frost Bankers Inc. grew its position in ON by 639.7% during the fourth quarter. Cullen Frost Bankers Inc. now owns 540 shares of the company’s stock valued at $25,000 after buying an additional 467 shares during the period. MidAtlantic Capital Management Inc. bought a new stake in ON during the fourth quarter valued at approximately $27,000. Caitong International Asset Management Co. Ltd increased its holdings in ON by 555.1% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 701 shares of the company’s stock valued at $33,000 after buying an additional 594 shares during the last quarter. Finally, EverSource Wealth Advisors LLC increased its holdings in ON by 69.6% during the first quarter. EverSource Wealth Advisors LLC now owns 760 shares of the company’s stock valued at $26,000 after buying an additional 312 shares during the last quarter. 36.39% of the stock is owned by hedge funds and other institutional investors.

ON News Roundup

Here are the key news stories impacting ON this week:

• Positive Sentiment: On reported continued profitability and strong direct-to-consumer momentum. Second-quarter revenue rose 13.5% year over year, DTC sales increased 26% and represented 45.7% of sales, while gross margin reached 65.4%. Management raised its full-year 2026 gross-margin outlook to at least 65%. On Holding Slides After Q2 Sales Missed Expectations Despite Strong Margins
• Positive Sentiment: Several analysts still see substantial long-term upside and retained bullish ratings despite lowering their targets. Telsey cut its target to $43 from $51, Baird to $55 from $70, BTIG to $60 from $70 and Needham to $37 from $45; the firms maintained outperform or buy ratings. On Holding Analysts Slash Their Forecasts After Q2 Results
• Neutral Sentiment: Management continues to target approximately 20% full-year revenue growth and issued 2026 revenue guidance of roughly $4.4 billion to $4.5 billion. However, that range is around or below the $4.5 billion analyst consensus, leaving investors focused on execution and the pace of recovery.
• Negative Sentiment: The main catalyst for the sell-off was a second-quarter sales miss: revenue was approximately $1.05 billion versus expectations near $1.09 billion. Wholesale growth slowed to 4.8% as On used a more selective sell-in strategy, raising concerns about slowing sales growth and near-term demand. On Shares Fall Sharply After Wholesale Slowdown in Q2
• Negative Sentiment: Higher U.S. tariff costs, cautious consumer spending and foreign-exchange effects added pressure. Although earnings per share slightly exceeded consensus or matched estimates depending on the data source, investors appeared more concerned about the revenue shortfall and cautious outlook than the stronger margins. William Blair also downgraded ONON to market perform. On Shares Tumble After Quarterly Net Sales Miss

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.