In a significant move within the tech industry, a major shareholder of OneStream, Inc. (NYSE:OS), has sold a substantial number of shares, totaling over $11.6 million. The recent transactions occurred on July 25, 2024, at a price of $18.85 per share.
The shareholder, Eric Davidson, who is identified as a ten percent owner of the company, offloaded 236,246 shares of Class A Common Stock, leaving him with a zero balance in this class of shares following the transaction. This sale was part of a series of transactions that included the sale of 127,618 shares each from three separate trusts: the Eric M. Davidson Trust dated March 9, 2007, the John P. Davidson Irrevocable Trust dated December 31, 2019, and the Molly K. Davidson Irrevocable Trust dated December 31, 2019. Additionally, another set of 127,618 shares from the Owen R. Davidson Irrevocable Trust dated December 31, 2019, was sold.
According to the footnotes in the filing, Mr. Davidson has sole voting and dispositive power over the shares held in the Eric M. Davidson Trust, while Paul J. Brent, the trustee of the other three trusts, holds sole voting and investment power over those shares.
The transactions were disclosed in a regulatory filing with the SEC, which was signed by Eric Davidson on July 29, 2024. It is worth noting that following these sales, the trusts associated with the Davidson family no longer hold any shares of Class A Common Stock in OneStream, Inc.
Investors and market watchers often keep a close eye on insider transactions, as they can provide insights into an insider's view of the company's value. The sale of such a significant amount of stock by a major shareholder in OneStream, Inc. is a notable event that could be of interest to current and potential investors.
InvestingPro Insights
Amidst the significant insider transactions at OneStream, Inc. (NYSE:OS), investors may find the latest data from InvestingPro particularly insightful. As of the last twelve months as of Q1 2024, OneStream operates with a moderate level of debt, which could be a stabilizing factor for the company's financial health. However, it's important to note that the company has not been profitable over this period.
InvestingPro data further reveals that OneStream has a market capitalization of $6.45 billion, which, when juxtaposed with its lack of profitability, results in a negative P/E ratio of -196.74. This metric has further declined to -405.39, suggesting an increased valuation concern. Despite these figures, the company's revenue growth is robust, with a quarterly increase of 39.93% in Q1 2024, reflecting a strong market demand for its offerings. The gross profit margin stands at an impressive 69.79%, indicating efficient cost management relative to revenue.
Investors should also be aware that OneStream is trading near its 52-week high, with its price at 97.0% of this peak, and the InvestingPro Fair Value estimate for the stock is currently at $20.23. This discrepancy could signal that the stock is overvalued at its current price of $28. Moreover, the company does not pay a dividend, which may influence the investment strategies of income-focused shareholders.
For those seeking more detailed analysis and additional insights, there are more InvestingPro Tips available on the OneStream profile at https://www.investing.com/pro/OS. To access these insights and enhance your investment strategy, use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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