Ouster (NASDAQ:OUST) Trading Up 9.1% - Should You Buy?

Key Points

• Ouster shares rose 9.1% to about $38.23, with trading volume below average. The stock has a $2.75 billion market capitalization and a beta of 3.25, indicating high volatility.
• Analyst sentiment is generally positive, with six Buy, two Hold and one Sell rating; the consensus rating is “Moderate Buy” and the average price target is $54.67. However, Ouster recently missed quarterly EPS estimates, reporting a $0.26 loss per share despite revenue exceeding expectations.
• Insiders have been selling shares: the CEO and general counsel sold stock in September, while insiders have sold 173,037 shares worth $6.72 million over the past 90 days. Institutional investors and hedge funds own 31.45% of the company.

Shares of Ouster, Inc. (NASDAQ:OUST - Get Free Report) were up 9.1% on Monday . The company traded as high as $38.24 and last traded at $38.2310. 1,657,982 shares changed hands during trading, a decline of 47% from the average session volume of 3,127,277 shares. The stock had previously closed at $35.05.

Analyst Upgrades and Downgrades

Several research firms have recently issued reports on OUST. Citigroup reiterated an "outperform" rating on shares of Ouster in a research report on Tuesday, July 21st. Weiss Ratings restated a "sell (d-)" rating on shares of Ouster in a report on Wednesday, August 12th. Northland Securities set a $60.00 price target on Ouster and gave the stock an "outperform" rating in a research report on Tuesday, July 21st. Roth Capital assumed coverage on shares of Ouster in a report on Friday, May 29th. They set a "buy" rating and a $75.00 price target on the stock. Finally, Rosenblatt Securities reissued a "buy" rating and issued a $53.00 price objective on shares of Ouster in a research report on Thursday, August 27th. Six analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, Ouster presently has an average rating of "Moderate Buy" and a consensus price target of $54.67.

Ouster Trading Up 9.0%

The company's 50 day moving average is $38.34 and its 200 day moving average is $34.33. The company has a market cap of $2.75 billion, a PE ratio of -44.42 and a beta of 3.25.

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

Insider Activity

In related news, CEO Charles Pacala sold 30,385 shares of the stock in a transaction that occurred on Monday, September 14th. The shares were sold at an average price of $33.96, for a total value of $1,031,874.60. Following the transaction, the chief executive officer owned 1,041,816 shares in the company, valued at approximately $35,380,071.36. This represents a 2.83% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, General Counsel Megan Chung sold 11,484 shares of the firm's stock in a transaction dated Monday, September 14th. The stock was sold at an average price of $33.96, for a total value of $389,996.64. Following the sale, the general counsel directly owned 189,291 shares in the company, valued at approximately $6,428,322.36. This trade represents a 5.72% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 173,037 shares of company stock valued at $6,720,238. Company insiders own 5.72% of the company's stock.

Hedge Funds Weigh In On Ouster

A number of hedge funds have recently made changes to their positions in the company. California State Teachers Retirement System boosted its holdings in Ouster by 50.3% in the 1st quarter. California State Teachers Retirement System now owns 79,401 shares of the company's stock valued at $1,459,000 after purchasing an additional 26,574 shares during the last quarter. Renaissance Technologies LLC purchased a new stake in Ouster during the 1st quarter worth about $2,436,000. Dimensional Fund Advisors LP grew its stake in shares of Ouster by 7.2% during the first quarter. Dimensional Fund Advisors LP now owns 483,871 shares of the company's stock worth $8,889,000 after purchasing an additional 32,440 shares in the last quarter. Bastion Asset Management Inc. acquired a new stake in Ouster during the first quarter worth approximately $5,271,000. Finally, Janus Henderson Group PLC increased its position in Ouster by 706.0% during the first quarter. Janus Henderson Group PLC now owns 177,895 shares of the company's stock worth $3,268,000 after buying an additional 155,825 shares during the period. Institutional investors and hedge funds own 31.45% of the company's stock.

Ouster Company Profile

Ouster, Inc develops lidar sensors and software used to help machines perceive and understand their surroundings. Its digital lidar technology measures distance and generates three-dimensional data for applications including industrial automation, robotics, intelligent transportation, infrastructure monitoring and automotive systems.

The company offers a portfolio of lidar sensors designed for different range, resolution and deployment requirements, along with software and perception tools that help customers interpret sensor data.

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