ON (NYSE:ONON) Shares Break Above 200 Day Moving Average – What’s Next?

On Holding AG (NYSE:ONON)’s share price passed above its two hundred day moving average during trading on Wednesday. The stock has a two hundred day moving average of $36.59 and traded as high as $39.09. ON shares last traded at $38.52, with a volume of 15,782,934 shares.

Key Headlines Impacting ON

Here are the key news stories impacting ON this week:

• Positive Sentiment: Wells Fargo initiated coverage with an Overweight rating and a $48 price target, citing potential upside for the shares. Wells Fargo coverage
• Positive Sentiment: Wells Fargo’s view that “Nike’s pain is On’s gain” reinforces the prospect that competitive challenges at Nike could benefit On. Nike’s pain is On’s gain—Wells Fargo
• Positive Sentiment: UBS backing and a separate report of a “Moderate Buy” consensus indicate continued analyst support, although the UBS headline also points to subdued earnings expectations. ON Holding gets UBS backing despite muted earnings expectations Wall Street analysts rate ONON Moderate Buy
• Negative Sentiment: A Zacks preview said ONON lacked key factors associated with a likely earnings beat, raising the risk of disappointment around its upcoming report. On Holding reports next week: What awaits?

Wall Street Analyst Weigh In

A number of research firms have weighed in on ONON. BTIG Research reissued a “buy” rating and set a $60.00 target price on shares of ON in a research report on Tuesday. BMO Capital Markets restated a “market perform” rating and issued a $35.00 price target on shares of ON in a research report on Wednesday, October 28th. Jefferies Financial Group reaffirmed an “underperform” rating on shares of ON in a research note on Tuesday, October 20th. Piper Sandler reiterated an “overweight” rating and set a $45.00 price objective on shares of ON in a research report on Thursday, September 24th. Finally, Morgan Stanley began coverage on shares of ON in a research note on Thursday, September 10th. They set an “overweight” rating and a $39.00 target price for the company. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-three have assigned a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, ON presently has a consensus rating of “Moderate Buy” and an average target price of $43.73.

ON Stock Up 5.5%

The firm’s fifty day moving average price is $31.17 and its two-hundred day moving average price is $36.59. 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 stock has a market cap of $24.58 billion, a price-to-earnings ratio of 26.20, a price-to-earnings-growth ratio of 0.72 and a beta of 2.05.

ON (NYSE:ONON) last announced its quarterly earnings data on Tuesday, August 11th. The company reported $0.35 EPS for the quarter, missing analysts’ consensus estimates of $0.42 by ($0.07). ON had a net margin of 12.09% and a return on equity of 22.92%. The firm had revenue of $1.05 billion during the quarter, compared to analyst estimates of $1.09 billion. During the same period last year, the business posted ($0.09) EPS. The company’s revenue was up 13.5% on a year-over-year basis. Sell-side analysts forecast 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 acquired 65,000 shares of the firm’s stock in a transaction 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 purchase, the insider owned 5,228,184 shares in the company, valued at approximately $160,348,403.28. This represents a 1.26% increase in their position. The purchase was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CEO Caspar Coppetti bought 65,000 shares of the company’s stock in a transaction on Friday, August 14th. The shares were purchased at an average cost of $30.67 per share, for a total transaction of $1,993,550.00. Following the transaction, the chief executive officer owned 2,440,855 shares in the company, valued at approximately $74,861,022.85. This represents a 2.74% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Corporate insiders own 68.57% of the company’s stock.

Hedge Funds Weigh In On ON

Institutional investors have recently modified their holdings of the business. Lido Advisors LLC lifted its holdings in ON by 1.6% during the third quarter. Lido Advisors LLC now owns 29,063 shares of the company’s stock worth $861,000 after acquiring an additional 459 shares during the period. Hohimer Wealth Management LLC purchased a new position in ON in the third quarter worth $1,113,000. J. Derek Lewis & Associates Inc. bought a new position in ON in the 3rd quarter valued at $227,000. Pictet Asset Management Holding SA grew its stake in ON by 116.8% in the 3rd quarter. Pictet Asset Management Holding SA now owns 1,741,829 shares of the company’s stock valued at $51,571,000 after purchasing an additional 938,285 shares during the period. Finally, CenterBook Partners LP bought a new position in ON in the 3rd quarter valued at $211,000. 36.39% of the stock is owned by institutional investors.

About ON

On Holding AG, commonly known as On, is a Swiss sportswear company that develops and sells performance footwear, apparel and accessories. The company serves athletes and everyday consumers with products designed for running, training, outdoor activities and lifestyle use.

On is best known for its running shoes, which incorporate proprietary technologies such as CloudTec cushioning and the Speedboard propulsion system. Its product portfolio also includes athletic clothing, outerwear and accessories.