$6.6 Million Wasn't Enough For Them

Three founders bought 60,000 shares each of their own company.

That was in May, at $36.64 a share, about $2.2 million apiece. On Holding (ONON) is the Swiss running shoe company, and David Allemann, Caspar Coppetti and Olivier Bernhard started it in a Zurich garage in 2010. Two of them had just stepped back in as co-CEOs.

Then earnings hit on August 11. Revenue came in $22 million light, and the stock dropped more than 20%.

Three days later, two of those same founders went back and bought 65,000 shares each at $30.67.

They averaged down into their own company, six dollars below where they had already committed $6.6 million.

Over those same six months, the CEO who was on his way out made zero purchases and six sales, unloading almost 25,000 shares for around $880,000. The chief operating officer sold too.

The men leaving sold, and the men who built it bought twice.

And the quarter that took the stock apart had sales growing better than 20% with margins widening. Revenue is what came up short, on wholesale timing and currency.