On Holding (ONON) shares closed meaningfully higher on Sept. 23 after the Swiss athletic brand authorized its first-ever $1 billion stock buyback program.
During the Investor Day presentation, management reiterated its full-year 2026 guidance as well, projecting low-20% constant-currency net sales growth.
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Despite today’s gains, however, On Holding stock remains down roughly 40% versus its year-to-date high.
www.barchart.comWhat the Buyback Plan Means for On Holding Stock
The newly authorized $1.0 billion buyback program represents a decisive shift toward shareholder-friendly capital allocation.
At On Holding’s current market capitalization of about $10 billion, the repurchase plan will reduce the company’s total outstanding Class A share count by as much as 10%.
The initiative – made possible by a healthy balance sheet – signals strong insider conviction in the firm’s underlying valuation and long-term earnings trajectory.
By lowering total share count while committing to high-teens to low-20% top-line growth through 2029, On Holding has set up a powerful driver for improving earnings per share (EPS).
Note that insiders have bought significantly more ONON stock in the trailing six months than they sold, which serves as another bullish signal for the athletic shoes specialist.
Should You Invest in ONON Shares Today?
For long-term investors, the year-to-date pullback in On Holding shares presents an intriguing risk-reward setup.
The NYSE-listed firm continues to expand its premium global footprint, driving strong direct-to-consumer (DTC) sales as it rapidly scales across Asia-Pacific and European markets.
Combined with robust margin targets, including gross margins above 65%, ONON offers best-in-class profitability metrics for premium sportswear.
At a price-to-earnings (P/E) multiple of about 18x, On Holding AG remains significantly cheaper to own in 2026 than its larger U.S. rival Nike (NKE) that’s going for about 22x as of writing.
What’s the Consensus Rating on On Holding AG?
Wall Street analysts also view On Holding as undervalued and recommend owning it at the current price.
According to Barchart, the consensus rating on ONON shares remains at “Moderate Buy” with the mean price target of over $43 indicating potential for a 45% rally through the remainder of 2026.
www.barchart.com On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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