Outset Medical (NASDAQ:OM) Stock Falls 3% - Should You Sell?

Key Points

• Outset Medical shares fell 3% to approximately $2.96 in mid-day trading, with volume 41% above the average.
• Analysts have a consensus “Hold” rating and an average price target of $10.00, although recent ratings included both an upgrade to Hold and a downgrade to Sell.
• The company remains financially challenged: it missed quarterly EPS estimates, posted a negative 63.06% net margin, and analysts expect a full-year loss of $3.81 per share.

Outset Medical, Inc. (NASDAQ:OM - Get Free Report) traded down 3% during mid-day trading on Monday. The stock traded as low as $2.84 and last traded at $2.96. 186,333 shares were traded during trading, an increase of 41% from the average daily volume of 132,195 shares. The stock had previously closed at $3.05.

Analyst Upgrades and Downgrades

Several research firms have weighed in on OM. Wall Street Zen raised shares of Outset Medical from a "sell" rating to a "hold" rating in a research note on Saturday, August 15th. Weiss Ratings lowered shares of Outset Medical from a "sell (d-)" rating to a "sell (e+)" rating in a report on Friday, August 21st. Three equities research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, Outset Medical currently has a consensus rating of "Hold" and an average target price of $10.00.

Outset Medical Stock Down 3.0%

The company has a quick ratio of 4.11, a current ratio of 5.19 and a debt-to-equity ratio of 1.03. The stock has a 50 day simple moving average of $3.99 and a 200 day simple moving average of $4.16. The stock has a market cap of $55.65 million, a price-to-earnings ratio of -0.72 and a beta of 1.90.

Outset Medical (NASDAQ:OM - Get Free Report) last released its quarterly earnings data on Thursday, August 6th. The company reported ($0.80) EPS for the quarter, missing the consensus estimate of ($0.72) by ($0.08). Outset Medical had a negative net margin of 63.06% and a negative return on equity of 61.67%. The firm had revenue of $31.64 million for the quarter, compared to the consensus estimate of $28.97 million. As a group, analysts expect that Outset Medical, Inc. will post -3.81 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of the business. BML Capital Management LLC lifted its position in shares of Outset Medical by 250.2% during the 1st quarter. BML Capital Management LLC now owns 1,902,201 shares of the company's stock worth $7,304,000 after buying an additional 1,359,021 shares in the last quarter. Renaissance Technologies LLC grew its holdings in shares of Outset Medical by 391.3% in the first quarter. Renaissance Technologies LLC now owns 222,075 shares of the company's stock valued at $853,000 after acquiring an additional 176,870 shares in the last quarter. Marquette Asset Management LLC purchased a new stake in shares of Outset Medical during the second quarter valued at approximately $212,000. Aristides Capital LLC purchased a new stake in shares of Outset Medical during the fourth quarter valued at approximately $177,000. Finally, Bank of New York Mellon Corp purchased a new stake in shares of Outset Medical during the second quarter valued at approximately $121,000.

Outset Medical Company Profile

Outset Medical, Inc is a medical technology company focused on simplifying hemodialysis for patients and healthcare providers. The company's principal product is the Tablo Hemodialysis System, an integrated dialysis platform designed to combine water purification, dialysate production, treatment monitoring and data connectivity in a single device.

Tablo is intended for use in hospitals, outpatient clinics and other care settings, and has also been cleared for home hemodialysis in the United States.

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