Nike Shares Hit 12-Year Lows, On Holding Insiders Purchase Stock Amid Dip
Nike (NKE) shares have fallen to a new low in about 12 years due to rising competition and declining sales. Despite the drop, its forward P/E ratio remains at 23.38—46% above the sector median of 15.99. Meanwhile, On Holding AG (ONON), a smaller rival, has seen insider buying by CEO Caspar Coppetti and co-founder Olivier Bernhard after missing Q2 revenue estimates and cutting full-year guidance. On's second-quarter revenue grew 22% at constant currency but slowed from the previous quarter due to a deliberate slowdown in wholesale shipments. Management attributed this strategy to avoid discounting, particularly in North America. Despite slower growth, profitability improved with gross margin rising by nearly four percentage points and adjusted EBITDA expanding as well. Bulls argue that On's strategic inventory management could benefit future product launches and maintain full-price sales. The stock’s forward earnings multiple is now 70% below its five-year average, making it more attractive from a valuation standpoint.
Topics: earnings_miss insider_trading Nike On Holding