Ouster (NASDAQ:OUST) Stock Jumps 11.1% - Should You Buy?

Key Points

• Ouster shares jumped 11.1% to about $33, though trading volume was 37% below the average session volume.
• Analyst sentiment is generally positive: six analysts rate the stock Buy, one Hold, and one Sell, producing a “Moderate Buy” consensus and an average price target of $54.67.
• The company remains unprofitable, reporting a quarterly EPS loss of $0.26 versus the expected $0.12 loss, while insiders have sold approximately $6.7 million worth of shares over the past 90 days.

Ouster, Inc. (NASDAQ:OUST - Get Free Report)'s stock price shot up 11.1% on Tuesday. The company traded as high as $32.87 and last traded at $33.0010. 1,944,862 shares were traded during mid-day trading, a decline of 37% from the average session volume of 3,069,854 shares. The stock had previously closed at $29.71.

Analyst Ratings Changes

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

Ouster Price Performance

The business's 50-day moving average price is $36.72 and its 200 day moving average price is $32.32. The firm has a market capitalization of $2.37 billion, a price-to-earnings ratio of -38.43 and a beta of 3.23.

Ouster (NASDAQ:OUST - Get Free Report) last posted its quarterly earnings results on Thursday, August 6th. The company reported ($0.26) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.12) by ($0.14). The company 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, sell-side analysts expect that Ouster, Inc. will post -1.07 earnings per share for the current year.

Insider Buying and Selling at Ouster

In other news, CFO Kenneth Gianella sold 40,000 shares of the company's stock in a transaction on Tuesday, August 18th. The stock was sold at an average price of $45.33, for a total value of $1,813,200.00. Following the completion of the sale, the chief financial officer owned 261,014 shares in the company, valued at $11,831,764.62. This represents a 13.29% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. Also, CEO Charles Pacala sold 30,385 shares of the company'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 $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 ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 173,037 shares of company stock valued at $6,720,238. 5.72% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Ouster

Several large investors have recently modified their holdings of OUST. Farther Finance Advisors LLC boosted its position in shares of Ouster by 83.4% in the 3rd quarter. Farther Finance Advisors LLC now owns 895 shares of the company's stock valued at $36,000 after purchasing an additional 407 shares during the period. Integrated Wealth Concepts LLC acquired a new stake in Ouster during the 2nd quarter worth about $74,000. Allworth Financial LP lifted its stake in Ouster by 40.3% during the second quarter. Allworth Financial LP now owns 1,190 shares of the company's stock valued at $74,000 after buying an additional 342 shares in the last quarter. MCF Advisors LLC lifted its stake in Ouster by 34.4% during the second quarter. MCF Advisors LLC now owns 1,344 shares of the company's stock valued at $84,000 after buying an additional 344 shares in the last quarter. Finally, GAMMA Investing LLC boosted its holdings in shares of Ouster by 31.0% in the third quarter. GAMMA Investing LLC now owns 1,441 shares of the company's stock worth $58,000 after buying an additional 341 shares during the period. 31.45% of the stock is owned by institutional investors.

About Ouster

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.

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