One Stop Systems, Inc. (NASDAQ:OSS) Sees Large Increase in Short Interest

Key Points

• Short interest in One Stop Systems surged 115% in May to 3.7 million shares, with about 15.5% of the float now sold short and a days-to-cover ratio of 1.1.
• The stock has drawn mixed analyst opinion: several firms kept Buy ratings, but Zacks downgraded it to Hold. The consensus remains Moderate Buy with an average price target of $13.00.
• OSS reported better-than-expected quarterly results, earning $0.01 per share versus an expected loss and revenue of $8.07 million versus $6.98 million expected, while the stock recently traded near its 52-week high of $18.49.

One Stop Systems, Inc. (NASDAQ:OSS - Get Free Report) was the target of a significant increase in short interest in the month of May. As of May 15th, there was short interest totaling 3,697,048 shares, an increase of 115.0% from the April 30th total of 1,719,422 shares. Based on an average trading volume of 3,365,761 shares, the days-to-cover ratio is currently 1.1 days. Approximately 15.5% of the company's shares are short sold.

Analyst Ratings Changes

Several research analysts recently commented on the stock. Roth Mkm reaffirmed a "buy" rating and issued a $18.00 price target on shares of One Stop Systems in a research note on Wednesday, May 6th. Alliance Global Partners reaffirmed a "buy" rating on shares of One Stop Systems in a research note on Wednesday, May 6th. Zacks Research downgraded shares of One Stop Systems from a "strong-buy" rating to a "hold" rating in a research note on Monday, May 18th. Weiss Ratings raised shares of One Stop Systems from a "sell (d-)" rating to a "hold (c-)" rating in a research note on Monday, March 23rd. Finally, Lake Street Capital raised their price target on shares of One Stop Systems from $9.00 to $12.00 and gave the stock a "buy" rating in a research note on Thursday, March 19th. Three research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $13.00.

One Stop Systems Trading Up 1.5%

Shares of NASDAQ:OSS traded up $0.27 during trading on Friday, reaching $18.18. The stock had a trading volume of 1,408,218 shares, compared to its average volume of 2,446,183. The company has a market capitalization of $449.77 million, a P/E ratio of 72.72 and a beta of 1.14. The firm's 50-day simple moving average is $11.61 and its 200 day simple moving average is $9.36. One Stop Systems has a one year low of $2.69 and a one year high of $18.49.

One Stop Systems (NASDAQ:OSS - Get Free Report) last posted its quarterly earnings results on Wednesday, May 6th. The company reported $0.01 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.05) by $0.06. The business had revenue of $8.07 million during the quarter, compared to analysts' expectations of $6.98 million. One Stop Systems had a net margin of 12.44% and a negative return on equity of 0.24%. Equities research analysts forecast that One Stop Systems will post -0.08 earnings per share for the current fiscal year.

Insider Activity

In other news, Director Mitchell H. Herbets sold 5,000 shares of the stock in a transaction on Tuesday, May 26th. The shares were sold at an average price of $17.62, for a total value of $88,100.00. Following the sale, the director owned 48,984 shares of the company's stock, valued at approximately $863,098.08. This represents a 9.26% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Gregory W. Matz sold 8,000 shares of the stock in a transaction on Tuesday, May 26th. The shares were sold at an average price of $17.52, for a total transaction of $140,160.00. Following the completion of the sale, the director directly owned 78,914 shares in the company, valued at approximately $1,382,573.28. This represents a 9.20% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last quarter, insiders have sold 21,000 shares of company stock valued at $369,380. 3.90% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On One Stop Systems

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in OSS. Vanguard Group Inc. raised its position in One Stop Systems by 17.4% during the 3rd quarter. Vanguard Group Inc. now owns 872,700 shares of the company's stock worth $4,678,000 after buying an additional 129,479 shares during the last quarter. Jane Street Group LLC boosted its position in shares of One Stop Systems by 85.2% during the 4th quarter. Jane Street Group LLC now owns 603,805 shares of the company's stock valued at $4,335,000 after acquiring an additional 277,763 shares during the last quarter. Arrowstreet Capital Limited Partnership acquired a new position in shares of One Stop Systems during the 3rd quarter valued at about $2,959,000. Marshall Wace LLP boosted its position in shares of One Stop Systems by 1,130.1% during the 2nd quarter. Marshall Wace LLP now owns 476,393 shares of the company's stock valued at $1,691,000 after acquiring an additional 437,664 shares during the last quarter. Finally, Polar Asset Management Partners Inc. acquired a new position in One Stop Systems in the third quarter valued at about $1,566,000. Hedge funds and other institutional investors own 32.67% of the company's stock.

One Stop Systems Company Profile

One Stop Systems, Inc NASDAQ: OSS develops and manufactures high-performance computing and storage systems tailored for mission-critical and harsh-environment applications. The company's solutions are designed to deliver accelerated processing, high-throughput data handling and reliability in confined or ruggedized form factors. OSS leverages advanced cooling, power management and custom enclosures to support demanding workloads in settings where off-the-shelf hardware may fall short.

The company's product portfolio includes GPU-accelerated servers, embedded single-board computers, high-speed RAID storage arrays and integrated system solutions.

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