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

Key Points

• Ouster shares fell sharply, opening at $42.61 versus a prior close of $44.91 and last trading near $42.44. The company has a $2.97 billion market capitalization and a high beta of 3.23.
• Analysts remain broadly optimistic, with six Buy, two Hold, and one Sell rating, resulting in a “Moderate Buy” consensus and an average price target of $54.67. Recent targets range from $53 to $60.
• Ouster missed quarterly earnings expectations, reporting an adjusted loss of $0.26 per share versus the expected $0.12 loss, although revenue of $54.63 million exceeded estimates. Insiders sold 173,037 shares worth approximately $6.72 million over the past three months.

Ouster, Inc. (NASDAQ:OUST - Get Free Report) gapped down prior to trading on Wednesday. The stock had previously closed at $44.91, but opened at $42.61. Ouster shares last traded at $42.4380, with a volume of 537,698 shares traded.

Wall Street Analysts Forecast Growth

Several equities analysts have recently commented on OUST shares. Citigroup reaffirmed an "outperform" rating on shares of Ouster in a report on Tuesday, July 21st. Weiss Ratings restated a "sell (d-)" rating on shares of Ouster in a research note on Wednesday, August 12th. Rosenblatt Securities reiterated a "buy" rating and issued a $53.00 target price on shares of Ouster in a research note on Thursday, August 27th. Northland Securities set a $60.00 price target on shares of Ouster and gave the company an "outperform" rating in a report on Tuesday, July 21st. Finally, Oppenheimer restated an "outperform" rating and set a $57.00 price target (up from $42.00) on shares of Ouster in a research report on Wednesday, July 15th. Six research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, Ouster has an average rating of "Moderate Buy" and a consensus price target of $54.67.

Ouster Stock Down 8.4%

The firm has a market capitalization of $2.97 billion, a price-to-earnings ratio of -48.11 and a beta of 3.23. The company has a 50-day moving average price of $39.36 and a 200-day moving average price of $36.00.

Ouster (NASDAQ:OUST - Get Free Report) last posted its earnings results on Thursday, August 6th. The company reported ($0.26) EPS for the quarter, missing the consensus estimate of ($0.12) by ($0.14). The business had revenue of $54.63 million during the quarter, compared to analyst estimates of $51.47 million. Ouster had a negative net margin of 26.02% and a negative return on equity of 17.49%. As a group, analysts forecast that Ouster, Inc. will post -1.07 earnings per share for the current year.

Insider Activity at Ouster

In related news, General Counsel Megan Chung sold 11,484 shares of Ouster stock in a transaction dated Monday, September 14th. The shares were sold at an average price of $33.96, for a total transaction of $389,996.64. Following the sale, the general counsel directly owned 189,291 shares in the company, valued at $6,428,322.36. The trade was a 5.72% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Charles Pacala sold 30,385 shares of the company's stock in a transaction dated Monday, September 14th. The stock was sold at an average price of $33.96, for a total transaction of $1,031,874.60. Following the completion of the sale, the chief executive officer directly owned 1,041,816 shares of the company's stock, valued at $35,380,071.36. The trade was a 2.83% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders sold 173,037 shares of company stock valued at $6,720,238. 5.72% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the stock. Baird Financial Group Inc. bought a new stake in Ouster during the second quarter worth approximately $25,218,000. Wellington Management Group LLP acquired a new position in shares of Ouster during the 2nd quarter valued at $15,384,000. Bank of New York Mellon Corp acquired a new position in shares of Ouster during the 2nd quarter valued at $11,192,000. AWM Investment Company Inc. bought a new stake in shares of Ouster in the 2nd quarter worth $9,843,000. Finally, Arrowstreet Capital Limited Partnership acquired a new stake in shares of Ouster in the first quarter valued at $8,915,000. 31.45% of the stock is currently owned by institutional investors.

About Ouster

Ouster, Inc is a technology company that develops lidar sensors and software for machine perception. Its digital lidar products use laser light to create three-dimensional representations of surrounding environments, helping machines detect objects, measure distances, and operate with greater situational awareness.

The company's product portfolio includes lidar sensors for industrial automation, robotics, autonomous vehicles, transportation, mapping, and smart-infrastructure applications.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.