Ahmed Nabeel, the Chief Financial Officer of Outset Medical (TASE:), Inc. (NASDAQ:OM), a medical device company with a market capitalization of approximately $57 million, recently executed a sale of company shares according to a filing with the Securities and Exchange Commission. According to InvestingPro analysis, the company’s shares have declined nearly 80% over the past year, though current metrics suggest the stock may be undervalued. On January 7, 2025, Nabeel sold 1,835 shares of common stock, with the transaction valued at approximately $2,367, at a price of $1.29 per share.
This transaction was carried out to cover tax withholding obligations related to performance stock units (PSUs) that vested and were released on January 6, 2025. The sale was not a discretionary trade but rather a “sell to cover” transaction. Following the sale, Nabeel holds 308,932 shares of Outset Medical.
In other recent news, Outset Medical, Inc. has reported strong financial results for the third quarter of 2024. The company’s Q3 revenue reached $28.7 million, surpassing guidance with a 14% increase in treatment revenue and a 22% rise in service revenue. In addition, the year-to-date recurring revenue increased by 23%, with average selling prices for consoles rising 18%. Outset Medical also improved its gross margin to 36.4% and decreased its net loss by 43% from the previous year.
These recent developments include the company raising its 2024 revenue guidance to approximately $112 million, expecting a gross margin in the mid-30% range. Operating expenses for 2024 are projected around $120 million, reflecting effective expense management and cost reduction strategies. Despite reporting a net loss of $20.2 million for the quarter, the company remains optimistic about long-term growth with a strong order pipeline, nearly half in advanced sales stages.
Recurring revenue now constitutes about 60% of total revenue, indicating a solid recurring revenue foundation for 2025. The company’s resilience in the face of natural disasters and its ongoing commercial transformation were also emphasized, demonstrating its robust performance and promising outlook for the future.
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