OSI Systems (NASDAQ:OSIS) Sets New 1-Year Low on Analyst Downgrade

Key Points

• OSI Systems shares fell 9.3% to a new 52-week low after Oppenheimer cut its price target from $320 to $300, despite maintaining an outperform rating. The consensus view remains “Moderate Buy,” with an average target of $294.71.
• The company narrowly beat quarterly EPS expectations at $3.78, but revenue of $484.1 million significantly missed the $529.7 million consensus. Fiscal 2027 adjusted EPS guidance also came in below expectations, contributing to the sell-off.
• Longer-term indicators remain supportive, including record fiscal 2026 revenue of $1.79 billion, a backlog near $1.9 billion, an expanded share-repurchase program, and an $85 million U.S. Customs and Border Protection contract.

OSI Systems, Inc. (NASDAQ:OSIS - Get Free Report)'s stock price hit a new 52-week low on Friday after Oppenheimer lowered their price target on the stock from $320.00 to $300.00. Oppenheimer currently has an outperform rating on the stock. OSI Systems traded as low as $186.50 and last traded at $195.19, with a volume of 223620 shares changing hands. The stock had previously closed at $218.09.

Several other research analysts have also recently weighed in on OSIS. Bank of America decreased their target price on OSI Systems from $315.00 to $300.00 and set a "buy" rating for the company in a research note on Monday, July 20th. Weiss Ratings cut shares of OSI Systems from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Thursday, July 30th. Citigroup cut their price target on shares of OSI Systems from $345.00 to $279.00 and set a "buy" rating for the company in a report on Monday, May 18th. Finally, Roth Capital reissued a "buy" rating and set a $310.00 target price on shares of OSI Systems in a research note on Tuesday, May 5th. Five research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $294.71.

Key OSI Systems News

Here are the key news stories impacting OSI Systems this week:

• Positive Sentiment: OSI Systems reported adjusted quarterly EPS of $3.78, narrowly exceeding the $3.77 consensus estimate and rising from $2.84 a year earlier. Fiscal 2026 revenue reached a record $1.79 billion, up 4%, while year-end backlog increased to approximately $1.9 billion. OSI Systems Q4 Earnings Top Estimates
• Positive Sentiment: The board expanded the share-repurchase authorization by 1 million shares, leaving 1,078,731 shares available for repurchase. The company also bought back 564,880 shares for $123.6 million during the quarter, potentially supporting per-share value. OSI Systems Announces Expansion of Stock Repurchase Program
• Positive Sentiment: OSI Systems recently received an $85 million IDIQ contract from U.S. Customs and Border Protection for mobile X-ray inspection systems, reinforcing demand for its security products. OSI Systems Awarded $85 Million Contract
• Neutral Sentiment: Management forecast fiscal 2027 revenue of $1.875 billion to $1.93 billion, broadly consistent with Wall Street’s roughly $1.9 billion expectation. However, the timing of Middle East-related deliveries creates near-term execution uncertainty. OSI Systems Fiscal 2027 Revenue Forecast
• Negative Sentiment: Quarterly revenue was $484.1 million, well below the $529.7 million analyst consensus and down roughly 4% year over year. Fiscal 2027 adjusted EPS guidance of $11.13 to $11.49 has a midpoint of $11.31, below the $11.44 consensus, weighing on the stock despite the EPS beat. OSI Systems Stock Reaction

Institutional Trading of OSI Systems

A number of hedge funds have recently bought and sold shares of the company. Abel Hall LLC increased its position in OSI Systems by 3.6% in the 1st quarter. Abel Hall LLC now owns 1,113 shares of the technology company's stock worth $296,000 after buying an additional 39 shares during the period. CIBC Private Wealth Group LLC boosted its position in shares of OSI Systems by 6.4% in the fourth quarter. CIBC Private Wealth Group LLC now owns 815 shares of the technology company's stock valued at $208,000 after acquiring an additional 49 shares during the period. Severin Investments LLC grew its stake in shares of OSI Systems by 3.0% in the fourth quarter. Severin Investments LLC now owns 1,940 shares of the technology company's stock worth $495,000 after acquiring an additional 56 shares during the last quarter. HB Wealth Management LLC increased its position in OSI Systems by 7.0% during the first quarter. HB Wealth Management LLC now owns 1,045 shares of the technology company's stock worth $277,000 after acquiring an additional 68 shares during the period. Finally, Assetmark Inc. increased its position in OSI Systems by 10.8% during the fourth quarter. Assetmark Inc. now owns 741 shares of the technology company's stock worth $189,000 after acquiring an additional 72 shares during the period. 89.21% of the stock is owned by hedge funds and other institutional investors.

OSI Systems Trading Down 9.3%

The stock has a market capitalization of $3.26 billion, a price-to-earnings ratio of 22.59, a PEG ratio of 1.65 and a beta of 1.21. The company's 50 day moving average is $220.72 and its 200 day moving average is $247.30. The company has a debt-to-equity ratio of 1.12, a quick ratio of 2.42 and a current ratio of 3.25.

OSI Systems (NASDAQ:OSIS - Get Free Report) last issued its quarterly earnings results on Thursday, August 20th. The technology company reported $3.78 earnings per share for the quarter, beating analysts' consensus estimates of $3.77 by $0.01. The firm had revenue of $484.06 million during the quarter, compared to the consensus estimate of $529.72 million. OSI Systems had a net margin of 8.42% and a return on equity of 18.84%. The business's revenue was up .1% on a year-over-year basis. During the same period in the prior year, the firm earned $2.84 EPS. OSI Systems has set its FY 2027 guidance at 11.130-11.490 EPS. On average, research analysts forecast that OSI Systems, Inc. will post 10.41 EPS for the current fiscal year.

OSI Systems Company Profile

OSI Systems, Inc NASDAQ: OSIS is a publicly traded technology company founded in 1987 and headquartered in Hawthorne, California. The company designs, develops and manufactures advanced security and inspection systems, optoelectronic devices and medical imaging equipment. Over its history, OSI Systems has grown its product offerings through internal research and development as well as strategic acquisitions, expanding its capabilities in mission-critical sensing and inspection technologies.

OSI Systems operates three primary business segments.

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