San Jose, CA – Outset Medical, Inc. (NASDAQ:OM), a company specializing in innovative medical technology, has reported a notable transaction by Chief Technology Officer Jean-Olivier Racine. On May 10, 2024, Racine sold 8,306 shares of common stock at a price of $3.27 per share, totaling approximately $27,160.
The sale was made to cover tax withholding obligations related to the vesting of 33,923 shares of common stock under restricted stock units (RSUs) granted to Racine on various dates from June 22, 2021, to January 6, 2023. The RSUs experienced an accelerated vesting approved by the Compensation Committee of the Board in connection with Racine's departure from the company. This transaction was a "sell to cover" event and was not a discretionary trade by Racine.
Following the transaction, Racine's holdings in Outset Medical's common stock amounted to 265,325 shares. This number includes 1,801 shares acquired through the company's 2020 Employee Stock Purchase Plan (ESPP) for the purchase period from September 1, 2023, to February 29, 2024, which is exempt from Rule 16b-3(c).
Investors and followers of Outset Medical, Inc. often pay close attention to insider transactions as they can provide insights into the company's performance and executives' perspectives on the stock's value. These transactions are routinely disclosed in compliance with SEC regulations to ensure transparency in the financial markets.
InvestingPro Insights
Outset Medical, Inc. (NASDAQ:OM) has been navigating a challenging financial landscape, as reflected in the recent insider transaction by Chief Technology Officer Jean-Olivier Racine. With a market capitalization of $158.79 million, the company's financial metrics offer a deeper understanding of its current position. The company's revenue over the last twelve months as of Q1 2024 stood at $125.08 million, showing a growth of 5.74%. Despite this revenue growth, the company's operating income margin was deeply negative at -128.5%, indicating substantial losses relative to its revenue.
InvestingPro Tips suggest Outset Medical is quickly burning through cash and that analysts do not anticipate the company will be profitable this year. These insights may provide context to Racine's transaction and the company's broader financial health. Additionally, the stock price has experienced significant volatility, with a substantial 85.31% drop over the last year, though there has been a strong return of 32.61% over the last month. This volatility and the recent insider sale could be of particular interest to investors trying to gauge market sentiment.
For those looking for a more comprehensive analysis, there are 11 additional InvestingPro Tips available for Outset Medical, Inc. at InvestingPro. Interested readers can also take advantage of a special offer using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, which may provide further valuable insights into the company's financials and stock performance.
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