Leslie Trigg, Chair 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 a price of $1.29 each, amounting to a total transaction value of $13,192. The transaction comes as the stock has experienced significant volatility, with shares down nearly 80% over the past year. According to InvestingPro analysis, the company appears undervalued at its current market cap of $57 million. This sale was conducted to cover tax withholding obligations related to previously earned performance stock units. Following this transaction, Trigg holds 894,624 shares directly and 8,770 shares indirectly through the Trigg Family Trust. InvestingPro data reveals the company is currently burning through cash, with a current ratio of 6.49 indicating strong short-term liquidity despite operational challenges. Get access to 12 more exclusive InvestingPro Tips and comprehensive financial analysis through the Pro Research Report.
In other recent news, Outset Medical has reported robust financial results for the third quarter of 2024. The dialysis services provider revealed a record recurring revenue and substantial increase in treatment and service revenue, raising its revenue guidance for the year. The Q3 revenue reached $28.7 million, with treatment revenue up by 14% and service revenue by 22%. Year-to-date recurring revenue increased by 23%, with average selling prices for consoles rising 18%. The company’s gross margin improved to 36.4% and net loss declined by 43% from the previous year.
Despite a net loss of $20.2 million for the quarter, the company’s outlook remains optimistic, with strong growth in home care through midsized dialysis organizations and skilled nursing facilities. The company’s resilience in the face of natural disasters and ongoing commercial transformation were also highlighted. The company has a strong order pipeline, with nearly half in advanced sales stages. It is confident in operational improvements and a solid recurring revenue foundation for 2025, even without providing specific guidance for the year.
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