Owlet (NYSE:OWLT) Cut to "Strong Sell" at Wall Street Zen

Key Points

• Wall Street Zen downgraded Owlet to a "strong sell" from "sell", while analyst opinions remain mixed (three Buys, one Hold, one Sell) giving a consensus rating of "Hold" and a consensus target price of $20.00.
• Shares opened at about $4.82 with a market cap of ~$135.7M and are trading near their 52-week low ($3.86), well below the $20 consensus target.
• Owlet reported a slight beat for the quarter (EPS -$0.03 vs. -$0.13; revenue $26.55M vs. $26.01M), but analysts still forecast a fiscal-year loss (~-$0.63) and executives have recently sold shares to cover tax withholding despite insiders retaining a large stake (~52%).

Owlet (NYSE:OWLT - Get Free Report) was downgraded by Wall Street Zen from a "sell" rating to a "strong sell" rating in a research report issued to clients and investors on Saturday.

Several other analysts have also recently issued reports on OWLT. TD Cowen reissued a "buy" rating on shares of Owlet in a research report on Friday, March 6th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Owlet in a report on Tuesday, April 21st. Finally, Zacks Research cut shares of Owlet from a "strong-buy" rating to a "hold" rating in a report on Monday, March 2nd. Three analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the company has a consensus rating of "Hold" and a consensus target price of $20.00.

Owlet Stock Down 2.4%

Shares of OWLT opened at $4.82 on Friday. The stock has a market capitalization of $135.73 million, a PE ratio of -1.78 and a beta of 1.84. Owlet has a 1 year low of $3.86 and a 1 year high of $16.94. The company has a debt-to-equity ratio of 0.13, a quick ratio of 1.51 and a current ratio of 1.85. The company's 50-day simple moving average is $6.63 and its 200-day simple moving average is $10.32.

Owlet (NYSE:OWLT - Get Free Report) last issued its quarterly earnings results on Thursday, March 5th. The company reported ($0.03) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.13) by $0.10. The business had revenue of $26.55 million for the quarter, compared to analyst estimates of $26.01 million. Analysts forecast that Owlet will post -0.63 earnings per share for the current fiscal year.

Insider Buying and Selling at Owlet

In other news, CEO Jonathan Harris sold 12,676 shares of Owlet stock in a transaction on Thursday, February 26th. The shares were sold at an average price of $11.50, for a total transaction of $145,774.00. Following the completion of the sale, the chief executive officer directly owned 339,336 shares of the company's stock, valued at approximately $3,902,364. The trade was a 3.60% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Amanda Crawford sold 6,892 shares of Owlet stock in a transaction on Friday, February 27th. The stock was sold at an average price of $11.50, for a total transaction of $79,258.00. Following the sale, the chief financial officer directly owned 212,800 shares of the company's stock, valued at approximately $2,447,200. This trade represents a 3.14% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last ninety days, insiders have sold 23,108 shares of company stock valued at $262,733. Corporate insiders own 52.20% of the company's stock.

Institutional Trading of Owlet

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in OWLT. Thurston Springer Miller Herd & Titak Inc. acquired a new stake in Owlet during the fourth quarter worth approximately $60,000. Bank of America Corp DE raised its holdings in Owlet by 6,517.7% during the third quarter. Bank of America Corp DE now owns 5,228 shares of the company's stock worth $44,000 after purchasing an additional 5,149 shares in the last quarter. XTX Topco Ltd acquired a new stake in Owlet during the second quarter worth approximately $90,000. Goldman Sachs Group Inc. acquired a new stake in Owlet during the first quarter worth approximately $43,000. Finally, Charles Schwab Investment Management Inc. acquired a new stake in Owlet during the fourth quarter worth approximately $242,000. Institutional investors and hedge funds own 72.60% of the company's stock.

Trending Headlines about Owlet

Here are the key news stories impacting Owlet this week:

• Positive Sentiment: Owlet reported a better-than-expected March quarter (EPS -$0.03 vs. -$0.13 consensus; revenue $26.55M vs. $26.01M), which supports near‑term confidence that revenue and margins may stabilize. MarketBeat: Owlet quarter beat
• Positive Sentiment: Large institutional buyers have added stakes recently (several funds disclosed increased positions), leaving institutional ownership high — a constructive backdrop for liquidity and potential price support. MarketBeat: Institutional holdings
• Neutral Sentiment: Executives continue to sell shares, but filings repeatedly state sales were to cover tax withholding on vested awards (routine pretext). The activity is disclosed across multiple Form 4 filings; investors should note these are recurring, not necessarily opportunistic. SEC Form 4 filings
• Negative Sentiment: A Zacks earnings preview warns Owlet lacks the setup for a Q1 beat and expects earnings to decline; if Q1 results or guidance disappoint, that could put renewed downward pressure on the stock despite the recent quarter’s outperformance. Zacks: Q1 earnings preview

About Owlet

Owlet Baby Care, Inc is a consumer health technology company specializing in the design and manufacture of smart baby monitoring products. The company’s flagship device, the Owlet Smart Sock, is a wearable monitor that tracks a newborn’s heart rate and oxygen saturation levels and transmits real-time data to a mobile app. Owlet has since expanded its product suite to include the Owlet Cam, an HD video monitor with audio and motion alerts, and the Dream Sock, a non-wearable device that collects sleep metrics to help parents understand and improve their baby’s rest patterns.

Founded in 2013 by engineer and father Kurt Workman, Owlet is headquartered in Lehi, Utah.

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