Outset Medical, Inc. (NASDAQ:OM), a company specialized in electromedical and electrotherapeutic apparatus, has reported a recent stock transaction involving its General Counsel, John L. Brottem. According to the latest filing, Brottem sold 10,569 shares of Outset Medical's common stock on June 12, 2024, for a weighted average price of $4.78 per share.
The shares were sold in multiple transactions at prices ranging from $4.77 to $4.81, totaling approximately $50,519. This disposal has adjusted Brottem's direct ownership in the company to a remaining 233,306 shares of common stock.
Investors often monitor insider transactions as they may provide insights into the company's performance and executives' perspectives on the stock's valuation. The transaction details, including the specific prices and number of shares sold at each price point within the reported range, can be provided upon request by the company, any security holder, or the SEC staff, as noted in the footnotes of the filing.
Outset Medical, formerly known as Home Dialysis Plus, Ltd., is incorporated in Delaware and has its business address in San Jose, California. The company's business phone number is listed as 669-231-8200.
John L. Brottem, serving as the General Counsel for Outset Medical, signed the document on June 14, 2024, confirming the accuracy of the reported transactions. The sale made by Brottem represents a recent insider trading activity that may be of interest to current and potential investors.
In other recent news, Outset Medical reported first-quarter revenue of $28.2 million, impacted by a ship hold on TabloCart and a cyberattack on Change Healthcare (NASDAQ:CHNG). Despite these setbacks, a resurgence in treatment ordering has been observed, and the company maintains a positive outlook for meeting its annual guidance. A substantial restructuring plan has been unveiled, aiming to reduce cash use by over $100 million through 2027, in a bid to reach cash flow breakeven sooner than projected, without the need for additional capital.
Outset Medical remains steadfast in its commitment to its recurring revenue model and plans to expand its footprint in the acute, home, and subacute markets. The company's gross margin improved to 31.1%, and operating expenses decreased. The firm anticipates annual revenue growth in the high teens between 2025 and 2027.
Outset Medical reaffirms its revenue and gross margin guidance for the full year 2024 and expects to reach cash flow breakeven earlier than initially anticipated. The company plans to ship TabloCart soon, which should contribute to sales growth in the latter half of the year.
InvestingPro Insights
As investors digest the news of insider selling by Outset Medical, Inc.'s (NASDAQ:OM) General Counsel, it's crucial to consider the broader financial context of the company. Our InvestingPro data reveals a market capitalization of $196.55 million, which, when coupled with a negative P/E ratio of -1.11, suggests that the market is accounting for the company's challenges in generating profits. Furthermore, the stock has experienced a significant 13.11% decline over the past week, aligning with the recent insider transaction.
Outset Medical's financial health, as indicated by a revenue growth of 5.74% over the last twelve months as of Q1 2024, shows some positive momentum despite a quarterly revenue decline of 15.83% in Q1 2024. This juxtaposition of growth metrics may point to a complex financial landscape that investors should navigate with caution. Additionally, with a gross profit margin of 24.61%, the company maintains some degree of profitability in its operations, although this is overshadowed by its substantial operating loss margin of -130.48%.
Two InvestingPro Tips that may be particularly relevant in light of this insider sale are: "Stock has taken a big hit over the last week" and "Analysts do not anticipate the company will be profitable this year." These insights could help investors understand the potential reasons behind the insider's decision to sell shares. For those looking for a deeper analysis, there are additional InvestingPro Tips available on the company's profile at https://www.investing.com/pro/OM, which could provide further guidance on Outset Medical's outlook.
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