Outset Medical, Inc. (NASDAQ:OM) Receives Average Recommendation of "Hold" from Brokerages

Key Points

• Broker consensus is “Hold”: Of five analysts covering Outset Medical, three recommend buying, one recommends holding, and one recommends selling. Their average 12-month price target is $10.00.
• The stock remains under pressure despite a 25% rise: Shares opened at $3.75, well below their 12-month high of $16.16, while the company has a $70.5 million market capitalization and negative earnings.
• Quarterly results were mixed: Revenue of $31.64 million exceeded estimates, but adjusted loss per share of $0.80 was worse than the expected $0.72 loss. Analysts anticipate a full-year loss of $3.81 per share.

Outset Medical, Inc. (NASDAQ:OM - Get Free Report) has been assigned a consensus recommendation of "Hold" from the five research firms that are presently covering the company, Marketbeat Ratings reports. One equities research analyst has rated the stock with a sell rating, one has assigned a hold rating and three have given a buy rating to the company. The average 1 year price objective among brokers that have covered the stock in the last year is $10.00.

A number of research analysts have recently issued reports on the stock. Wall Street Zen raised shares of Outset Medical from a "sell" rating to a "hold" rating in a research report on Saturday, August 15th. Weiss Ratings cut shares of Outset Medical from a "sell (d-)" rating to a "sell (e+)" rating in a research report on Friday, August 21st.

Outset Medical Trading Up 25.0%

OM opened at $3.75 on Friday. The company has a current ratio of 5.19, a quick ratio of 4.11 and a debt-to-equity ratio of 1.03. The firm has a market cap of $70.50 million, a price-to-earnings ratio of -0.92 and a beta of 2.00. Outset Medical has a 12 month low of $2.84 and a 12 month high of $16.16. The stock has a fifty day moving average price of $3.94 and a 200-day moving average price of $4.16.

Outset Medical (NASDAQ:OM - Get Free Report) last issued its quarterly earnings data on Thursday, August 6th. The company reported ($0.80) earnings per share for the quarter, missing analysts' consensus estimates of ($0.72) by ($0.08). The company had revenue of $31.64 million for the quarter, compared to the consensus estimate of $28.97 million. Outset Medical had a negative net margin of 63.06% and a negative return on equity of 61.67%. As a group, equities research analysts anticipate that Outset Medical will post -3.81 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Outset Medical

A number of large investors have recently made changes to their positions in OM. Bank of New York Mellon Corp grew its stake in shares of Outset Medical by 4.1% during the first quarter. Bank of New York Mellon Corp now owns 62,360 shares of the company's stock worth $239,000 after acquiring an additional 2,435 shares during the last quarter. Sei Investments Co. increased its holdings in shares of Outset Medical by 15.5% during the first quarter. Sei Investments Co. now owns 35,366 shares of the company's stock valued at $136,000 after acquiring an additional 4,738 shares in the last quarter. R Squared Ltd purchased a new position in shares of Outset Medical in the 1st quarter valued at approximately $65,000. Squarepoint Ops LLC purchased a new position in shares of Outset Medical in the 2nd quarter valued at approximately $98,000. Finally, Aristides Capital LLC acquired a new stake in Outset Medical in the 4th quarter worth approximately $177,000.

About Outset Medical

Outset Medical, Inc is a medical technology company focused on simplifying hemodialysis for patients and healthcare providers. The company's principal product is the Tablo Hemodialysis System, an integrated dialysis platform designed to combine water purification, dialysate production, treatment monitoring and data connectivity in a single device.

Tablo is intended for use in hospitals, outpatient clinics and other care settings, and has also been cleared for home hemodialysis in the United States.

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