Ouster (NASDAQ:OUST) Shares Gap Down - Time to Sell?

Key Points

• Ouster shares opened sharply lower, falling from a previous close of $48.13 to $45.09 and last trading near $44.35. The company has a $3.12 billion market capitalization and a high beta of 3.24, indicating significant volatility.
• Analyst sentiment remains broadly positive, with six Buy ratings, two Holds and one Sell, producing a consensus “Moderate Buy” rating and a $54.67 price target. However, Ouster recently missed quarterly EPS expectations, reporting a $0.26 loss per share versus the expected $0.12 loss.
• Insiders sold 554,004 shares worth approximately $22.6 million in the last quarter, while institutional investors own 31.45% of the stock. The company remains unprofitable, with a negative net margin of 26.02% and analysts expecting a full-year loss of $1.08 per share.

Shares of Ouster, Inc. (NASDAQ:OUST - Get Free Report) gapped down before the market opened on Tuesday . The stock had previously closed at $48.13, but opened at $45.09. Ouster shares last traded at $44.3480, with a volume of 815,122 shares.

Wall Street Analyst Weigh In

OUST has been the topic of several research analyst reports. Northland Securities set a $60.00 price objective on shares of Ouster and gave the company an "outperform" rating in a research report on Tuesday, July 21st. Roth Capital assumed coverage on shares of Ouster in a report on Friday, May 29th. They set a "buy" rating and a $75.00 target price for the company. Weiss Ratings reiterated a "sell (d-)" rating on shares of Ouster in a research note on Wednesday, August 12th. Oppenheimer reissued an "outperform" rating and issued a $57.00 price target (up from $42.00) on shares of Ouster in a report on Wednesday, July 15th. Finally, Citigroup restated an "outperform" rating on shares of Ouster in a research report on Tuesday, July 21st. Six analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $54.67.

Ouster Price Performance

The company has a market capitalization of $3.12 billion, a price-to-earnings ratio of -50.40 and a beta of 3.24. The business's 50-day moving average price is $43.05 and its two-hundred day moving average price is $31.56.

Ouster (NASDAQ:OUST - Get Free Report) last issued its quarterly earnings results on Thursday, August 6th. The company reported ($0.26) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.12) by ($0.14). The company had revenue of $54.63 million for the quarter, compared to analyst estimates of $51.47 million. Ouster had a negative return on equity of 17.49% and a negative net margin of 26.02%. As a group, research analysts predict that Ouster, Inc. will post -1.08 EPS for the current year.

Insider Activity at Ouster

In related news, Director Stephen A. Skaggs sold 3,614 shares of the firm's stock in a transaction on Thursday, August 6th. The stock was sold at an average price of $45.18, for a total value of $163,280.52. Following the transaction, the director owned 61,415 shares in the company, valued at approximately $2,774,729.70. This trade represents a 5.56% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CFO Kenneth P. Gianella sold 54,337 shares of the business's stock in a transaction dated Friday, June 12th. The shares were sold at an average price of $38.82, for a total value of $2,109,362.34. Following the completion of the transaction, the chief financial officer directly owned 301,014 shares of the company's stock, valued at approximately $11,685,363.48. This trade represents a 15.29% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 554,004 shares of company stock worth $22,582,192 in the last quarter. 5.72% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Ouster

Hedge funds have recently bought and sold shares of the company. Van ECK Associates Corp raised its holdings in shares of Ouster by 17.1% during the 3rd quarter. Van ECK Associates Corp now owns 3,590 shares of the company's stock worth $97,000 after buying an additional 525 shares in the last quarter. Main Management ETF Advisors LLC increased its holdings in Ouster by 1.0% in the fourth quarter. Main Management ETF Advisors LLC now owns 54,810 shares of the company's stock valued at $1,186,000 after purchasing an additional 560 shares during the period. Corient Private Wealth LLC increased its holdings in Ouster by 5.5% in the second quarter. Corient Private Wealth LLC now owns 11,554 shares of the company's stock valued at $280,000 after purchasing an additional 599 shares during the period. Prosperity Wealth Management Inc. raised its position in Ouster by 5.5% during the 3rd quarter. Prosperity Wealth Management Inc. now owns 13,000 shares of the company's stock worth $352,000 after purchasing an additional 675 shares during the last quarter. Finally, Creative Planning raised its position in Ouster by 1.6% during the 3rd quarter. Creative Planning now owns 43,681 shares of the company's stock worth $1,182,000 after purchasing an additional 677 shares during the last quarter. 31.45% of the stock is owned by institutional investors.

Ouster Company Profile

Ouster, Inc is a leading provider of high-resolution digital lidar sensors, software and services designed to enable advanced perception capabilities across a range of industries. Headquartered in San Francisco, California, the company develops modular lidar solutions that capture precise three-dimensional data in real time, supporting applications from autonomous vehicles and robotics to mapping, smart infrastructure and industrial automation.

The company’s core product lineup features multi-beam digital lidar units available in various form factors, including compact models for robotics and drones and larger units for automotive and mapping systems.

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