ON (NYSE:ONON) Hits New 1-Year Low on Disappointing Earnings

On Holding AG (NYSE:ONON) hit a new 52-week low on Tuesday after the company announced weaker than expected quarterly earnings. 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 EPS for the quarter, missing the consensus estimate of $0.42 by ($0.07). The firm had revenue of $1.05 billion for the quarter, compared to analysts’ expectations of $1.09 billion. ON had a net margin of 12.09% and a return on equity of 23.94%. The business’s quarterly revenue was up 13.5% on a year-over-year basis. During the same quarter in the prior year, the business posted ($0.09) EPS.

Key Headlines 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

ONON has been the subject of several research reports. Truist Financial lowered their price target on shares of ON from $48.00 to $40.00 and set a “buy” rating for the company in a research report on Tuesday. Raymond James Financial downgraded shares of ON from a “strong-buy” rating to an “outperform” rating and reduced their price objective for the stock from $52.00 to $38.00 in a research note on Wednesday. Wall Street Zen lowered ON from a “buy” rating to a “hold” rating in a report on Saturday, July 18th. Zacks Research cut ON from a “strong-buy” rating to a “hold” rating in a research report on Wednesday, August 5th. Finally, Telsey Advisory Group cut their price target on ON from $51.00 to $43.00 and set an “outperform” rating on the stock in a report on Wednesday. One investment analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating, five have issued a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus price target of $48.57.

Institutional Investors Weigh In On ON

Several institutional investors have recently bought and sold shares of the company. Cullen Frost Bankers Inc. lifted its holdings in shares of ON by 639.7% during the 4th quarter. Cullen Frost Bankers Inc. now owns 540 shares of the company’s stock valued at $25,000 after purchasing an additional 467 shares during the last quarter. Caitlin John LLC purchased a new position in ON during the 4th quarter worth $25,000. EverSource Wealth Advisors LLC grew its stake in ON by 69.6% during the 1st quarter. EverSource Wealth Advisors LLC now owns 760 shares of the company’s stock worth $26,000 after buying an additional 312 shares during the last quarter. MidAtlantic Capital Management Inc. acquired a new position in ON during the 4th quarter valued at about $27,000. Finally, Caitong International Asset Management Co. Ltd increased its position in ON by 555.1% during the 4th 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 in the last quarter. 36.39% of the stock is currently owned by institutional investors and hedge funds.

ON Stock Performance

The business has a 50 day simple moving average of $37.04 and a 200 day simple moving average of $38.70. The company has a quick ratio of 2.39, a current ratio of 2.98 and a debt-to-equity ratio of 0.26. The company has a market capitalization of $19.85 billion, a PE ratio of 21.16, a PEG ratio of 0.57 and a beta of 2.12.

ON Company Profile

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.