SCHEDULE: Morgan Stanley Discloses 6.5% Stake in On Holding AG

Morgan Stanley and its subsidiary, Morgan Stanley Investment Management Inc., have disclosed a combined beneficial ownership of 6.5% in On Holding AG's Class A Ordinary Shares.

Summary

• Morgan Stanley and its subsidiary, Morgan Stanley Investment Management Inc., reported beneficial ownership of Class A Ordinary Shares of On Holding AG.
• Morgan Stanley beneficially owns 19,166,610 shares, representing 6.5% of the class.
• Morgan Stanley Investment Management Inc. beneficially owns 18,876,026 shares, representing 6.4% of the class.
• The filing indicates that the securities were acquired and are held in the ordinary course of business, not for the purpose of changing or influencing control of On Holding AG.
• The beneficial ownership for Morgan Stanley includes 18,120,980 shares with shared voting power and 19,166,610 shares with shared dispositive power.
• For Morgan Stanley Investment Management Inc., this includes 17,838,580 shares with shared voting power and 18,876,026 shares with shared dispositive power.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a moderately positive signal, as a significant institutional stake suggests confidence in On Holding AG's long-term prospects, although the filing itself is purely informational regarding ownership and does not provide new operational details.

Positives

• A major financial institution, Morgan Stanley, holds a significant stake (6.5%) in On Holding AG, indicating institutional confidence.
• The filing certifies that the stake is held in the ordinary course of business, not for control-influencing purposes, suggesting a passive investment.

Future Outlook

NA

Management Comments

• The securities referred to above were acquired and are held in the ordinary course of business and were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of the issuer of the securities and were not acquired and are not held in connection with or as a participant in any transaction having that purpose or effect, other than activities solely in connection with a nomination under §§ 240.14a-11.

Industry Context

StockSavvy.ai notes that a significant stake by a major financial institution like Morgan Stanley often signals a degree of confidence in the issuer's long-term prospects within its sector. For On Holding AG, a company in the athletic footwear and apparel industry, this institutional backing could be viewed positively by the market, potentially attracting further investor interest.

Stakeholder Impact

• Shareholders: May view the significant institutional investment as a vote of confidence, potentially leading to increased investor interest and stability.
• Management: Could benefit from the perceived validation of their strategy by a major financial institution.

Key Dates

Recommendation

The disclosure of a significant institutional stake by Morgan Stanley in On Holding AG is generally a positive indicator of confidence. However, as a Schedule 13G filing, it provides no new operational or financial performance data for On Holding AG. Therefore, while the institutional backing is noteworthy, it does not fundamentally alter the investment thesis based solely on this filing, warranting a "hold" recommendation for existing investors and further due diligence for potential new investors.

Keywords

On Holding AG, Morgan Stanley, Morgan Stanley Investment Management, Class A Ordinary Shares, Beneficial Ownership, SEC Filing, Schedule 13G, Institutional Investment, Equity Stake