Outset Medical (NASDAQ:OM) Raised to Hold at Wall Street Zen

Key Points

• Wall Street Zen upgraded Outset Medical from “Sell” to “Hold,” bringing the overall analyst consensus to “Hold” with an average price target of $10.00.
• Shares rose 6.1% to open at $4.51, while the company reported quarterly revenue of $31.64 million—above estimates—but an adjusted loss of $0.80 per share, worse than expected.
• Outset Medical remains financially challenged, posting a negative net margin and return on equity; its CFO also sold shares to cover tax obligations, while several institutional investors established or increased positions.

Outset Medical (NASDAQ:OM - Get Free Report) was upgraded by research analysts at Wall Street Zen from a "sell" rating to a "hold" rating in a research report issued to clients and investors on Saturday.

A number of other research analysts have also commented on OM. Weiss Ratings raised Outset Medical from a "sell (e+)" rating to a "sell (d-)" rating in a report on Friday, August 7th. TD Cowen restated a "buy" rating on shares of Outset Medical in a report on Friday, May 8th. Three equities research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of "Hold" and an average price target of $10.00.

Outset Medical Stock Up 6.1%

OM stock opened at $4.51 on Friday. The firm has a market cap of $84.79 million, a PE ratio of -1.10 and a beta of 1.96. Outset Medical has a 1 year low of $3.00 and a 1 year high of $16.16. The company has a fifty day simple moving average of $4.58 and a 200 day simple moving average of $4.25. The company has a current ratio of 5.19, a quick ratio of 4.97 and a debt-to-equity ratio of 1.03.

Outset Medical (NASDAQ:OM - Get Free Report) last posted its earnings results on Thursday, August 6th. The company reported ($0.80) EPS for the quarter, missing the consensus estimate of ($0.72) by ($0.08). Outset Medical had a negative return on equity of 61.67% and a negative net margin of 63.06%.The business had revenue of $31.64 million for the quarter, compared to analyst estimates of $28.97 million. Sell-side analysts anticipate that Outset Medical will post -3.9 EPS for the current fiscal year.

Insider Buying and Selling

In related news, CFO Renee Gaeta sold 17,672 shares of Outset Medical stock in a transaction on Wednesday, June 3rd. The shares were sold at an average price of $4.94, for a total value of $87,299.68. Following the transaction, the chief financial officer owned 113,753 shares in the company, valued at $561,939.82. This trade represents a 13.45% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. 2.50% of the stock is owned by company insiders.

Institutional Investors Weigh In On Outset Medical

Several hedge funds and other institutional investors have recently made changes to their positions in OM. BML Capital Management LLC acquired a new position in shares of Outset Medical during the 4th quarter worth about $2,015,000. R Squared Ltd bought a new stake in Outset Medical during the 1st quarter valued at approximately $65,000. Aristides Capital LLC acquired a new stake in Outset Medical in the 4th quarter valued at approximately $177,000. Hsbc Holdings PLC acquired a new stake in Outset Medical in the 4th quarter valued at approximately $46,000. Finally, BNP Paribas Financial Markets increased its position in Outset Medical by 7,013.8% in the 2nd quarter. BNP Paribas Financial Markets now owns 2,063 shares of the company's stock worth $40,000 after buying an additional 2,034 shares during the period.

Outset Medical Company Profile

Outset Medical is a medical technology company specializing in innovations for renal care. The company's flagship offering, the Tablo Hemodialysis System, is designed to streamline and simplify dialysis treatment across acute and outpatient settings. By integrating water purification, dialysate production, and treatment monitoring into a single device, Tablo aims to reduce the complexity and logistical burden traditionally associated with hemodialysis therapy.

Tablo's modular design allows for rapid setup and flexible deployment in hospitals, clinics, long‐term care facilities and emergency response scenarios.

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