Ouster (NASDAQ:OUST) Shares Up 8.8% - Should You Buy?

Key Points

• Ouster shares rose 8.8% to about $38.66, although trading volume was 45% below the stock’s average. The company has a $2.46 billion market capitalization and highly volatile trading profile, with a beta of 3.17.
• Analyst sentiment is generally positive: six analysts rate Ouster a Buy, two rate it Hold and one rates it Sell, producing a “Moderate Buy” consensus and an average price target of $54.67. Recent targets range from $53 at Rosenblatt Securities to $75 at Roth Capital.
• Ouster remains unprofitable and carries insider-selling risk. It missed quarterly EPS expectations while reporting better-than-expected revenue, and insiders sold 749,354 shares worth approximately $28.5 million over the past three months.

Ouster, Inc. (NASDAQ:OUST - Get Free Report) shares shot up 8.8% on Friday . The company traded as high as $38.10 and last traded at $38.6610. Approximately 1,797,784 shares changed hands during trading, a decline of 45% from the average session volume of 3,286,353 shares. The stock had previously closed at $35.53.

Analysts Set New Price Targets

A number of equities analysts recently issued reports on OUST shares. Rosenblatt Securities raised their target price on Ouster from $40.00 to $53.00 and gave the stock a "buy" rating in a research note on Wednesday, May 27th. Citigroup reiterated an "outperform" rating on shares of Ouster in a research note on Tuesday, July 21st. Weiss Ratings initiated coverage on Ouster in a research note on Friday, May 15th. They issued a "sell (d-)" rating for the company. Roth Capital began coverage on Ouster in a research note on Friday, May 29th. They issued a "buy" rating and a $75.00 price objective for the company. Finally, Cantor Fitzgerald downgraded Ouster from an "overweight" rating to a "neutral" rating in a report on Thursday, May 7th. Six investment analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, Ouster presently has an average rating of "Moderate Buy" and a consensus price target of $54.67.

Ouster Price Performance

The firm's fifty day simple moving average is $42.52 and its 200 day simple moving average is $29.96. The company has a market capitalization of $2.46 billion, a PE ratio of -40.16 and a beta of 3.17.

Ouster (NASDAQ:OUST - Get Free Report) last issued its quarterly earnings data on Tuesday, May 5th. The company reported ($0.28) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.12) by ($0.16). Ouster had a negative net margin of 30.12% and a negative return on equity of 21.49%. The company had revenue of $48.58 million during the quarter, compared to analyst estimates of $46.15 million. During the same period last year, the firm earned ($0.42) EPS. On average, equities research analysts anticipate that Ouster, Inc. will post -1.03 EPS for the current fiscal year.

Insider Buying and Selling

In other news, CRO Cyrille Jacquemet sold 10,000 shares of Ouster stock in a transaction that occurred on Thursday, May 14th. The shares were sold at an average price of $35.00, for a total transaction of $350,000.00. Following the completion of the transaction, the executive directly owned 132,590 shares of the company's stock, valued at $4,640,650. The trade was a 7.01% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CTO Mark Frichtl sold 308,742 shares of the business's stock in a transaction on Tuesday, May 26th. The shares were sold at an average price of $41.53, for a total transaction of $12,822,055.26. Following the completion of the transaction, the chief technology officer owned 294,924 shares of the company's stock, valued at approximately $12,248,193.72. This represents a 51.14% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 749,354 shares of company stock valued at $28,542,907 in the last three months. 5.72% of the stock is currently owned by company insiders.

Institutional Trading of Ouster

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. NewEdge Advisors LLC boosted its stake in shares of Ouster by 2,532.6% during the 2nd quarter. NewEdge Advisors LLC now owns 1,132 shares of the company's stock worth $27,000 after acquiring an additional 1,089 shares in the last quarter. Larson Financial Group LLC increased its stake in shares of Ouster by 118.8% in the 4th quarter. Larson Financial Group LLC now owns 1,965 shares of the company's stock valued at $43,000 after purchasing an additional 1,067 shares in the last quarter. FNY Investment Advisers LLC acquired a new position in Ouster in the 2nd quarter worth about $150,000. Van ECK Associates Corp raised its holdings in Ouster by 17.1% in the 3rd quarter. Van ECK Associates Corp now owns 3,590 shares of the company's stock worth $97,000 after purchasing an additional 525 shares during the period. Finally, Wealthcare Advisory Partners LLC purchased a new position in Ouster during the second quarter worth approximately $230,000. Institutional investors and hedge funds own 31.45% of the company's stock.

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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