Leslie Trigg, Chairman and CEO of Outset medical (TASE:), Inc. (NASDAQ:OM), recently sold 10,227 shares of the company's common stock. The shares were sold at $1.29 per share, equating to a total transaction value of $13,192. The deal comes at a time when the stock has seen significant volatility, with shares down nearly 80% over the past year. according to InvestingPro Through analysis, the company appears to be undervalued at its current market capitalization of $57 million. This sale was made to cover tax withholding liabilities related to previously acquired performance stock units. Following this transaction, Trigg owns 894,624 shares directly and 8,770 shares indirectly through the Trigg Family Trust. InvestingPro The data reveals that the company is currently burning through cash, with the current ratio of 6.49 indicating strong short-term liquidity despite operational challenges. Get access to 12 additional exclusive InvestingPro tips and comprehensive financial analysis with the Pro Research Report.
In other recent news, Outset Medical reported strong financial results for the third quarter of 2024. The dialysis provider revealed record recurring revenue and a significant increase in treatment and services revenue, raising its revenue guidance for the year. Third-quarter revenue was $28.7 million, with treatment revenue up 14% and services revenue up 22%. Year-to-date recurring revenue was up 23%, with average console selling prices up 18%. The company's gross profit margin improved to 36.4% and net loss decreased by 43% from the previous year.
Despite a net loss of $20.2 million during the quarter, the company's outlook remains optimistic, with strong growth in home care through mid-sized dialysis facilities and skilled nursing facilities. The company's resilience in the face of natural disasters and ongoing business transformation was also highlighted. The company has a strong pipeline of orders, about half of which are in advanced sales stages. It is confident of operational improvements and a strong recurring revenue foundation for 2025, even without providing specific guidance for the year.
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