Footwear stock On Holdings AG (NYSE:ONON) is up 8.3% at $49.57, after the company announced better-than-expected second-quarter results, including record sales, and lifted its full-year revenue forecast despite Vietnam tariffs. At the open, the shares were as high as $52.20.
Should these gains hold, it will be the equity's third-straight post-earnings pop. On the charts, today's price action has ONON extending a bounce off the $44 level as it breaks back above the 320-day moving average. Year to date, ON Holdings stock is down 10.2%.
Analysts have yet to chime in on the event, though the majority is already bullish, with 19 of the 22 in coverage carrying a "buy" or "strong buy," and the remaining three a tepid "hold." Plus, the 12-month consensus price target of $66.16 is a 33.9% premium to current levels.
Options traders were quick to the draw this morning. So far, 33,000 calls and 37,000 puts have been exchanged, which is already 6 times ONON's average daily options volume. The August 44.50 put is the most popular, followed by the October 42.50 put, with new positions being sold to open at the latter.
Meanwhile, though short interest has been unwinding over the past couple weeks, it still represents 9% of the stock's available float. It would take shorts more than four days to buy back their bearish bets, at ONON's average pace of trading.
