Investors in cash trouble should check out Outset Medical Inc. (OM)

Outset Medical Inc. (NASDAQ: OM) stock fell -1.76% on Friday to $12.31 against a previous-day closing price of $12.53. With 1.0 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.51 million shares. During the session, the Medical Devices company that operates in wider Healthcare sector, reached to the highest price of $12.59 whereas the lowest price it dropped to was $12.11. The 52-week range on OM shows that it touched its highest point at $30.55 and its lowest point at $11.41 during that stretch. It currently has a 1-year price target of $27.60. Beta for the stock currently stands at 1.53.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of OM was down-trending over the past week, with a drop of -5.60%, but this was down by -16.77% over a month. Three-month performance dropped to -46.41% while six-month performance fell -39.92%. The stock lost -31.91% in the past year, while it has lost -52.32% so far this year. A look at the trailing 12-month EPS for OM yields -3.49 with Next year EPS estimates of -2.34. For the next quarter, that number is -0.71. This implies an EPS growth rate of -16.90% for this year and 17.30% for next year.

Float and Shares Shorts:

At present, 48.95 million OM shares are outstanding with a float of 48.39 million shares on hand for trading. On Aug 30, 2023, short shares totaled 7.65 million, which was 15.37% higher than short shares on Jul 30, 2023. In addition to Ms. Leslie L. Trigg as the firm’s Pres, CEO & Chairman, Mr. Nabeel Ahmed serves as its CFO, Principal Financial Officer & Principal Accounting Officer.

Institutional Ownership:

Through their ownership of 111.05% of OM’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 60.96% of OM, in contrast to 49.66% held by mutual funds. Shares owned by individuals account for 4.05%. As the largest shareholder in OM with 14.78% of the stake, Fidelity Management & Research Co holds 7,359,625 shares worth 7,359,625. A second-largest stockholder of OM, The Vanguard Group, Inc., holds 4,616,309 shares, controlling over 9.27% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in OM, holding 3,184,178 shares or 6.40% stake. With a 3.50% stake in OM, the JPMorgan Small Cap Growth Fund is the largest stakeholder. A total of 1,741,605 shares are owned by the mutual fund manager. The JPMorgan Funds – Global Healthcar, which owns about 3.19% of OM stock, is the second-largest Mutual Fund holder. It holds 1,585,868 shares valued at 21.58 million. Vanguard Total Stock Market ETF holds 3.07% of the stake in OM, owning 1,530,598 shares worth 20.83 million.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jun 29, 2023, OM reported revenue of $25.06M and operating income of -$43.72M. The EBITDA in the recently reported quarter was -$43.26M and diluted EPS was -$0.92.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for OM since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With OM analysts setting a high price target of $32.00 and a low target of $19.00, the average target price over the next 12 months is $27.60. Based on these targets, OM could surge 159.95% to reach the target high and rise by 54.35% to reach the target low. Reaching the average price target will result in a growth of 124.21% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.

Summary of Insider Activity:

Insiders traded OM stock several times over the past three months with 6 Buys and 13 Sells. In these transactions, 49,167 shares were bought while 53,326 shares were sold. The number of buy transactions has increased to 55 while that of sell transactions has risen to 85 over the past year. The total number of shares bought during that period was 833,559 while 412,646 shares were sold.

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