ON (NYSE:ONON) Shares Gap Down – Should You Sell?

On Holding AG (NYSE:ONON) gapped down prior to trading on Tuesday . The stock had previously closed at $46.76, but opened at $41.04. ON shares last traded at $41.0140, with a volume of 4,273,770 shares trading hands.

Trending Headlines about ON

Here are the key news stories impacting ON this week:

• Positive Sentiment: Q4 results beat expectations — ON reported Q4 EPS and revenue above consensus and delivered 22.6% y/y revenue growth; margins and profitability improved. Q4 Earnings Summary
• Positive Sentiment: Record full‑year sales and margin strength — On topped CHF 3.0 billion in 2025 sales and reported record margins, signaling robust demand and operating leverage. CNBC: Record Sales
• Positive Sentiment: Analyst upside and reaffirmations — Several sell‑side analysts maintain bullish views; mean analyst price targets imply ~28% upside and Telsey reaffirmed an “outperform” with a $65 PT. Zacks: Analyst Upside
• Neutral Sentiment: Heavy options activity — Unusually large call buying was reported ahead of results, showing speculative/hedged bullish interest that can amplify moves in either direction. Kalkine: Call Surge
• Neutral Sentiment: Full earnings materials and call transcript available — Investors can review the earnings call transcript and 20‑F filing for more detail on assumptions behind guidance. Earnings Call Transcript
• Negative Sentiment: Guidance disappointed — ON issued FY‑2026 revenue guidance of about $4.3B versus Street ~$4.6B, and management signaled slower growth in 2026; that miss on top‑line outlook is the primary driver of the sharp selloff. Seeking Alpha: Guidance Reaction
• Negative Sentiment: Market reaction and volume spike — Shares tumbled on the guidance miss with volume well above average, indicating broad investor selling and short‑term re‑pricing of growth expectations. MSN: Stock Plunge

Analysts Set New Price Targets

A number of research firms have recently weighed in on ONON. Bank of America raised their price target on shares of ON from $62.00 to $63.00 and gave the company a “buy” rating in a report on Thursday, November 13th. Weiss Ratings restated a “sell (d+)” rating on shares of ON in a report on Thursday, January 22nd. Guggenheim raised ON to a “strong-buy” rating in a research report on Wednesday, December 10th. Zacks Research upgraded ON from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, February 10th. Finally, UBS Group reissued a “buy” rating on shares of ON in a research note on Thursday, February 19th. Three analysts have rated the stock with a Strong Buy rating, seventeen have given a Buy rating, two have assigned a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, ON presently has an average rating of “Moderate Buy” and a consensus target price of $59.86.

ON Stock Performance

The stock has a market cap of $26.83 billion, a P/E ratio of 55.14, a P/E/G ratio of 1.39 and a beta of 2.15. The firm has a 50 day moving average of $46.39 and a two-hundred day moving average of $44.44. The company has a debt-to-equity ratio of 0.28, a quick ratio of 2.05 and a current ratio of 2.55.

ON (NYSE:ONON) last issued its quarterly earnings results on Tuesday, March 3rd. The company reported $0.32 EPS for the quarter, topping analysts’ consensus estimates of $0.26 by $0.06. ON had a return on equity of 14.81% and a net margin of 7.45%.The company had revenue of $937.29 million during the quarter, compared to analyst estimates of $727.55 million. During the same period in the previous year, the company earned $0.33 earnings per share. The company’s quarterly revenue was up 22.6% compared to the same quarter last year. On average, research analysts predict that On Holding AG will post 0.66 EPS for the current fiscal year.

Institutional Trading of ON

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Caitlin John LLC acquired a new position in shares of ON during the fourth quarter valued at about $25,000. Cullen Frost Bankers Inc. raised its holdings in ON by 639.7% in the 4th quarter. Cullen Frost Bankers Inc. now owns 540 shares of the company’s stock valued at $25,000 after acquiring an additional 467 shares in the last quarter. MidAtlantic Capital Management Inc. acquired a new position in ON in the 4th quarter valued at approximately $27,000. Caitong International Asset Management Co. Ltd lifted its position in shares of ON by 555.1% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 701 shares of the company’s stock worth $33,000 after acquiring an additional 594 shares during the period. Finally, TD Private Client Wealth LLC grew its holdings in shares of ON by 109.9% during the 4th quarter. TD Private Client Wealth LLC now owns 804 shares of the company’s stock worth $37,000 after purchasing an additional 421 shares in the last quarter. 36.39% of the stock is currently owned by institutional investors and hedge funds.

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.