A group of entities associated with investment firm KKR & Co. have sold a significant number of shares in OneStream, Inc. (NYSE:OS), a provider of corporate performance management software. The transactions, which took place on July 25, 2024, involved the sale of Class A common stock at a price of $18.85 per share, totaling approximately $48.2 million.
The entities involved in the sale include KKR TFO Partners L.P., KKR Associates TFO L.P., KKR TFO GP Ltd, KKR Custom Equity Opportunities Fund L.P., and several others. Collectively, these entities are affiliated with KKR & Co., a major global investment firm known for its private equity and real estate investments, among other financial services.
The sale of OneStream shares by KKR entities comes as part of the investment firm's portfolio management activities. OneStream, Inc., listed under the ticker NYSE:OS, specializes in software solutions that streamline financial operations for organizations, a sector that has seen growing demand in recent years.
Investors and market observers often keep a close watch on the trading activities of major investment firms like KKR, as such transactions can sometimes indicate strategic shifts or assessments of a company's valuation.
It is important for investors to note that the reported transactions represent sales of existing shares and not new stock issuances. As such, these transactions do not dilute the current shareholders' stakes in OneStream, Inc.
The reported sales were made public through a Form 4 filing with the Securities and Exchange Commission, which provides transparency on the trading activities of company insiders and major shareholders. While the reasons behind KKR's sale of OneStream shares were not disclosed, such filings provide valuable information for investors looking to understand market dynamics and the movements of significant stakeholders.
InvestingPro Insights
Following the recent sale of OneStream, Inc. (NYSE:OS) shares by entities associated with KKR & Co., investors may find the financial metrics and InvestingPro Tips revealing for assessing the company's current market position. OneStream, with its focus on corporate performance management software, operates with a moderate level of debt and has been trading near its 52-week high, with a price percentage of 97.0% of that peak. The company's market capitalization stands at $6.45 billion.
Despite OneStream's significant revenue growth of nearly 40% in the last quarter, it has not been profitable over the last twelve months. This is reflected in the negative adjusted P/E ratio for the last twelve months as of Q1 2024, which stands at -403.22. Additionally, OneStream does not pay a dividend to shareholders, which might influence the investment strategies of those seeking regular income from their stock holdings.
InvestingPro Tips suggest that OneStream is trading at a high revenue valuation multiple, which could be a point of caution for value-focused investors. For those interested in delving deeper, there are additional InvestingPro Tips available that can provide more context on the company's financial health and market performance. To access these insights and more, visit InvestingPro and consider using the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
OneStream's gross profit margin remains strong at 69.79%, indicating the company's ability to maintain profitability on its core services and products. However, the InvestingPro Fair Value estimate of $20.23 suggests that the stock may be overvalued at its previous close price of $28. As market dynamics shift, these metrics and tips from InvestingPro could prove invaluable for investors seeking to make informed decisions in a volatile market.
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