Ouster (NASDAQ:OUST) Shares Gap Up Following Analyst Upgrade

Key Points

• Cantor Fitzgerald upgraded Ouster to overweight from neutral and set a $45 price target; shares opened at $33.26, up from the prior close of $28.98, before trading near $31.98.
• Ouster reported Q3 revenue of $59.33 million, beating estimates and rising 50% year over year, and forecast Q4 revenue of $61 million to $64 million.
• The company remains unprofitable: its Q3 loss was $0.20 per share, wider than the $0.08 loss analysts expected. Analyst sentiment is broadly positive, with a consensus “Moderate Buy” rating, though insiders have sold shares recently.

Ouster, Inc. (NASDAQ:OUST - Get Free Report) shares gapped up prior to trading on Wednesday after Cantor Fitzgerald upgraded the stock from a neutral rating to an overweight rating. The stock had previously closed at $28.98, but opened at $33.26. Cantor Fitzgerald now has a $45.00 price target on the stock. Ouster shares last traded at $31.9820, with a volume of 900,389 shares changing hands.

Several other equities research analysts have also recently weighed in on the stock. Citigroup reaffirmed an "outperform" rating on shares of Ouster in a research report on Tuesday, July 21st. Northland Securities set a $60.00 price target on shares of Ouster and gave the company an "outperform" rating in a research report on Tuesday, July 21st. Weiss Ratings reissued a "sell (d-)" rating on shares of Ouster in a research note on Wednesday, August 12th. Rosenblatt Securities restated a "buy" rating and set a $53.00 price objective on shares of Ouster in a research note on Thursday, August 27th. Finally, Oppenheimer restated an "outperform" rating and set a $57.00 price objective (up from $42.00) on shares of Ouster in a report on Wednesday, July 15th. Seven research analysts have rated the stock with a Buy rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $56.67.

Insiders Place Their Bets

In related news, CTO Mark Frichtl sold 18,778 shares of the business's stock in a transaction dated Monday, September 14th. The shares were sold at an average price of $33.96, for a total transaction of $637,700.88. Following the sale, the chief technology officer owned 318,987 shares of the company's stock, valued at $10,832,798.52. The trade was a 5.56% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, General Counsel Megan Chung sold 11,484 shares of the firm's stock in a transaction that occurred on 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 of the company's stock, valued at $6,428,322.36. This trade represents a 5.72% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 141,651 shares of company stock valued at $5,305,817 over the last ninety days. 5.72% of the stock is owned by corporate insiders.

Ouster News Summary

Here are the key news stories impacting Ouster this week:

• Positive Sentiment: Ouster reported Q3 revenue of about $59 million, up 50% year over year and above estimates, alongside record shipments of more than 27,000 sensors. The quarterly loss narrowed from a year earlier. Ouster Q3 results
• Positive Sentiment: Management forecast Q4 revenue of $61 million to $64 million and said it is scaling REV8 production toward annual capacity of 100,000 units by the end of 2027, signaling expectations for continued growth. Q4 outlook and REV8 capacity
• Positive Sentiment: Cantor Fitzgerald upgraded OUST from neutral to overweight with a $45 price target. Rosenblatt Securities reaffirmed its buy rating and $53 target, adding analyst support. Cantor Fitzgerald recommendations Rosenblatt Securities recommendations
• Neutral Sentiment: The shares had fallen sharply over the preceding month, a sign of elevated volatility that may temper reactions to the new results. Recent share-price decline
• Negative Sentiment: Ouster remains unprofitable, with a Q3 loss of $0.20 per share. That was narrower year over year, but missed one reported analyst consensus estimate, keeping profitability a concern. Q3 earnings coverage

Institutional Trading of Ouster

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Parallel Advisors LLC boosted its position in Ouster by 66.2% during the third quarter. Parallel Advisors LLC now owns 866 shares of the company's stock valued at $35,000 after purchasing an additional 345 shares in the last quarter. Farther Finance Advisors LLC grew its position in shares of Ouster by 83.4% in the third quarter. Farther Finance Advisors LLC now owns 895 shares of the company's stock valued at $36,000 after purchasing an additional 407 shares in the last quarter. GAMMA Investing LLC lifted its holdings in Ouster by 31.0% in the third quarter. GAMMA Investing LLC now owns 1,441 shares of the company's stock valued at $58,000 after acquiring an additional 341 shares during the last quarter. Allworth Financial LP boosted its position in shares of Ouster by 40.3% during the 2nd quarter. Allworth Financial LP now owns 1,190 shares of the company's stock worth $74,000 after purchasing an additional 342 shares during the period. Finally, Integrated Wealth Concepts LLC purchased a new stake in Ouster during the 2nd quarter worth about $74,000. 31.45% of the stock is owned by hedge funds and other institutional investors.

Ouster Stock Up 11.1%

The firm has a fifty day moving average of $35.56 and a 200 day moving average of $32.43. The stock has a market cap of $2.32 billion, a PE ratio of -37.31 and a beta of 3.47.

Ouster (NASDAQ:OUST - Get Free Report) last announced its earnings results on Tuesday, November 3rd. The company reported ($0.20) EPS for the quarter, missing analysts' consensus estimates of ($0.08) by ($0.12). Ouster had a negative net margin of 26.02% and a negative return on equity of 17.49%. The business had revenue of $59.33 million during the quarter, compared to analyst estimates of $56.30 million. On average, equities research analysts forecast that Ouster, Inc. will post -1.07 EPS for the current fiscal year.

Ouster Company Profile

Ouster, Inc is a technology company that develops and manufactures digital lidar sensors and related software. Its lidar systems use laser light to detect and measure surrounding objects, supporting applications that require real-time perception, mapping, and automation.

The company's products are designed for customers in the automotive, industrial automation, robotics, infrastructure, mapping, security, and smart-city markets. Ouster provides lidar sensors for uses such as autonomous and assisted driving, warehouse and industrial operations, traffic monitoring, asset inspection, and other machine-perception 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.