KKR TFO Partners L.P. recently sold a significant portion of its holdings in OneStream, Inc. (NASDAQ:OS). According to the latest SEC filing, the firm disposed of a total of 5,993,052 shares of Class A Common Stock at a price of $29.9925 per share. The transactions, dated November 18, 2024, amounted to approximately $191.2 million.
The sale involved multiple transactions, including the disposal of 3,432,334 shares, 426,807 shares, 11,359 shares, and other smaller transactions, all executed at the same per-share price. Following these sales, KKR TFO Partners L.P. no longer holds any shares in OneStream, Inc.
These transactions were part of a larger divestment strategy by KKR-affiliated entities, which included various conversions of Class D Common Stock into Class A Common Stock prior to the sale.
In other recent news, OneStream Inc. disclosed plans for a secondary stock offering of 15 million shares, which includes 9 million shares from selling stockholders and nearly 6 million shares from the company itself. The proceeds from OneStream's shares will be used to buy LLC units from KKR Dream Holdings LLC. This offering, led by Morgan Stanley (NYSE:MS), J.P. Morgan, and KKR, is contingent on a registration statement filed with the Securities and Exchange Commission.
In financial assessments, Piper Sandler maintained an Overweight rating and raised the price target to $37, following OneStream's recent quarter results, which showed a 4% top-line beat and a $1 million increase in the forecast for the fourth quarter. BMO Capital initiated coverage with an Outperform rating, emphasizing OneStream's market share growth potential. The firm anticipates OneStream to surpass conservative near-term financial estimates, which could positively impact both revenue and earnings.
TD Cowen maintained its Buy rating on OneStream, highlighting the company's solid growth trends and potential for further expansion. Loop Capital also reiterated a Buy rating, pointing to the company's reduction in operating losses and the potential for market expansion. These developments suggest a positive outlook for OneStream, with various firms expressing confidence in the company's growth trajectory and market position.
InvestingPro Insights
The recent large-scale divestment by KKR TFO Partners L.P. from OneStream, Inc. (NASDAQ:OS) comes at a time when the company's stock has experienced significant volatility. According to InvestingPro data, OneStream's stock has taken a big hit over the last week, with a 1-week price total return of -9.76%. This recent downturn contrasts with the company's longer-term performance, as evidenced by its 6-month and 1-year price total returns of 12.59%.
Despite the recent stock price decline, OneStream's financial position shows some strengths. An InvestingPro Tip highlights that the company holds more cash than debt on its balance sheet, indicating a solid liquidity position. This is further supported by another tip noting that OneStream's liquid assets exceed its short-term obligations, which could provide some reassurance to investors in light of the recent large share sale.
However, it's important to note that OneStream is currently not profitable over the last twelve months, with a negative P/E ratio of -26.38. The company's revenue for the last twelve months as of Q3 2024 stands at $459.53 million, with a notable quarterly revenue growth of 20.69% in Q3 2024. This growth trajectory, combined with the fact that analysts predict the company will be profitable this year, suggests potential for future financial improvement.
For investors seeking a more comprehensive analysis, InvestingPro offers additional insights with 9 more tips available for OneStream. These tips could provide valuable context to the recent stock movements and the company's financial outlook.
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