Stock Traders Purchase High Volume of Put Options on One Stop Systems (NASDAQ:OSS)

Key Points

• 5,291 put options were bought on OSS—about a 296% increase over its average daily put volume—signaling unusually large bearish bets or hedging activity.
• Shares traded up to $11.71 on heavy volume (~4.03M) and sit well above the 50- and 200-day moving averages ($6.59 and $5.84), trading near a 12-month high of $12.75.
• OSS reported quarterly EPS of $0.01 (in line) and a revenue beat ($18.76M vs. $16.24M), but still has negative net margin and ROE and a consensus analyst price target of $8 with a "Moderate Buy" rating.

One Stop Systems, Inc. (NASDAQ:OSS - Get Free Report) saw unusually large options trading on Wednesday. Traders purchased 5,291 put options on the stock. This is an increase of approximately 296% compared to the average daily volume of 1,336 put options.

One Stop Systems Price Performance

Shares of OSS stock traded up $0.41 during trading hours on Wednesday, reaching $11.71. 4,031,730 shares of the stock were exchanged, compared to its average volume of 4,172,499. The business's fifty day moving average is $6.59 and its two-hundred day moving average is $5.84. The firm has a market capitalization of $287.11 million, a P/E ratio of -36.56 and a beta of 0.98. One Stop Systems has a 12-month low of $1.85 and a 12-month high of $12.75.

One Stop Systems (NASDAQ:OSS - Get Free Report) last posted its quarterly earnings results on Wednesday, November 5th. The company reported $0.01 EPS for the quarter, hitting the consensus estimate of $0.01. One Stop Systems had a negative net margin of 11.47% and a negative return on equity of 26.14%. The company had revenue of $18.76 million during the quarter, compared to analysts' expectations of $16.24 million. As a group, equities research analysts predict that One Stop Systems will post -0.52 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

A number of research firms have commented on OSS. Alliance Global Partners reaffirmed a "buy" rating on shares of One Stop Systems in a research report on Monday, January 5th. Weiss Ratings reiterated a "sell (d-)" rating on shares of One Stop Systems in a report on Wednesday, October 8th. Roth Capital reaffirmed a "buy" rating and issued a $9.00 price objective on shares of One Stop Systems in a research note on Monday, January 5th. Industrial Alliance Securities set a $9.00 target price on One Stop Systems in a research note on Monday, January 5th. Finally, Lake Street Capital reaffirmed a "buy" rating on shares of One Stop Systems in a research report on Wednesday, December 31st. Three investment 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.com, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $8.00.

Institutional Investors Weigh In On One Stop Systems

Hedge funds and other institutional investors have recently made changes to their positions in the business. Geode Capital Management LLC boosted its holdings in One Stop Systems by 0.9% in the second quarter. Geode Capital Management LLC now owns 199,729 shares of the company's stock valued at $709,000 after purchasing an additional 1,837 shares in the last quarter. Quadrature Capital Ltd acquired a new position in shares of One Stop Systems in the 2nd quarter valued at $57,000. Granite Investment Partners LLC purchased a new position in shares of One Stop Systems in the 2nd quarter valued at $39,000. Walleye Capital LLC acquired a new stake in One Stop Systems during the 2nd quarter worth $46,000. Finally, Marshall Wace LLP lifted its position in One Stop Systems by 1,130.1% in the second quarter. Marshall Wace LLP now owns 476,393 shares of the company's stock valued at $1,691,000 after acquiring an additional 437,664 shares during the last quarter. Institutional investors and hedge funds own 32.67% of the company's stock.

One Stop Systems Company Profile

One Stop Systems, Inc NASDAQ: OSS develops and manufactures high-performance computing and storage systems tailored for mission-critical and harsh-environment applications. The company's solutions are designed to deliver accelerated processing, high-throughput data handling and reliability in confined or ruggedized form factors. OSS leverages advanced cooling, power management and custom enclosures to support demanding workloads in settings where off-the-shelf hardware may fall short.

The company's product portfolio includes GPU-accelerated servers, embedded single-board computers, high-speed RAID storage arrays and integrated system solutions.

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