In a recent transaction, Leslie Trigg, the Chair and CEO of Outset Medical, Inc. (NASDAQ:OM), sold 5,237 shares of the company's common stock. The transaction, completed on May 16, 2024, saw the shares sold at a price of $3.53 each, totaling over $18,486.
The sale was part of a "sell to cover" transaction, a necessary step to fulfill tax withholding obligations related to the vesting of 14,739 shares underlying Restricted Stock Units (RSUs) granted to Trigg on various dates between March 15, 2021, and January 6, 2023. It's important to note that this sale was not a discretionary trade but a required action to manage tax responsibilities.
Following this transaction, Leslie Trigg still holds a substantial interest in Outset Medical, with 915,804 shares of common stock remaining in her possession. This figure includes 1,801 shares acquired through the Outset Medical, Inc. 2020 Employee Stock Purchase Plan (ESPP) for the purchase period ending February 29, 2024.
Outset Medical, based in San Jose, California, operates in the electromedical and electrotherapeutic apparatus sector, providing innovative medical technologies. This transaction comes as part of the regular financial disclosures required of company executives, offering transparency to investors and the market regarding insider activities.
For investors tracking insider transactions as an indicator of company health and executive confidence, it's worth noting that Leslie Trigg's remaining equity in the company represents a significant investment and ongoing stake in Outset Medical's future.
InvestingPro Insights
Outset Medical, Inc. (NASDAQ:OM) has experienced notable stock price movements recently, with a 17.59% return over the last week and a remarkable 67.13% return over the last month, reflecting a significant recovery from its -82.05% one-year price total return. These fluctuations are indicative of the stock's volatility, which is a key consideration for investors. The company's market capitalization currently stands at $186.72 million USD, suggesting a relatively small cap status in the market.
InvestingPro Tips highlight that while Outset Medical has been quickly burning through cash, it's also important to recognize the company's liquid assets exceed its short-term obligations, providing some financial flexibility. Moreover, seven analysts have revised their earnings upwards for the upcoming period, suggesting potential optimism about the company's future performance. It is worth noting, however, that analysts do not anticipate the company will be profitable this year, which aligns with the reported negative operating income margin of -128.5% for the last twelve months as of Q1 2024.
For a deeper dive into Outset Medical's financial health and stock performance, investors can access additional InvestingPro Tips by visiting https://www.investing.com/pro/OM. Subscribers can use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, gaining access to a wealth of analytical tools and data to guide investment decisions. Outset Medical does not pay a dividend to shareholders, which may influence the investment strategy of those seeking regular income from their holdings. There are many more InvestingPro Tips available, providing valuable insights for both current and potential investors.
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