Deepak Chopra, the President and CEO of OSI Systems Inc. (NASDAQ:OSIS), recently sold a significant portion of his holdings in the company. According to a filing with the Securities and Exchange Commission, Chopra sold a total of 35,000 shares over two days, November 11 and 12, 2024. The sales were executed at prices ranging from $153.39 to $153.87 per share, totaling approximately $5.38 million.
The transactions were carried out through various trusts, including The Deepika Chopra Trust and The Chopra 2012 Irrevocable Trust, as well as directly. Following these transactions, Chopra holds 424,323 shares directly. The sales were part of a pre-arranged trading plan, as noted in the filing.
In other recent news, OSI Systems, a specialized electronic systems designer and manufacturer, has made significant strides in its business operations. The company recently secured a $6 million order from a leading healthcare equipment manufacturer for the provision of optical sensors. This order is expected to be integrated into the customer's patient care devices, reflecting OSI Systems' ongoing commitment to the healthcare sector.
Additionally, the company announced a separate $6 million contract with a U.S. hospital system. This deal involves the delivery of an array of patient monitoring solutions, further showcasing the company's advanced clinical information and process workflow technology.
On the financial front, OSI Systems reported a robust Q1 growth for fiscal year 2025, with a 23% increase in revenue to a record $344 million. This growth was primarily driven by its Security division. The company also reported non-GAAP adjusted earnings per share at $1.25 and ended the quarter with a substantial backlog of approximately $1.8 billion.
Furthermore, OSI Systems has increased its guidance for fiscal '25 revenue to between $1.67 billion and $1.695 billion, and non-GAAP diluted EPS guidance has been raised to $9 to $9.30 per share. These recent developments underscore the company's strong financial performance and potential for continued growth.
InvestingPro Insights
While Deepak Chopra's recent sale of OSI Systems Inc. (NASDAQ:OSIS) shares may raise eyebrows, it's essential to consider the broader financial context of the company. According to InvestingPro data, OSI Systems boasts a market capitalization of $2.56 billion and has demonstrated strong financial performance. The company's revenue growth of 24.35% over the last twelve months as of Q1 2023 indicates robust business expansion.
InvestingPro Tips reveal that management has been aggressively buying back shares, which could be seen as a vote of confidence in the company's future prospects. This buyback activity aligns with the company's strong financial position, as another tip notes that OSI Systems' liquid assets exceed its short-term obligations.
The stock is currently trading near its 52-week high, with a price-to-earnings ratio of 19.49. This valuation appears reasonable, especially considering the InvestingPro Tip that OSIS is trading at a low P/E ratio relative to its near-term earnings growth. The PEG ratio of 0.47 further supports this view, suggesting the stock may be undervalued relative to its growth potential.
Investors seeking more comprehensive analysis can access additional insights through InvestingPro, which offers 7 more tips for OSIS beyond those mentioned here.
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