SAN JOSE, CA—Ahmed Nabeel, the Chief Financial Officer of Outset Medical (TASE:PMCN), Inc. (NASDAQ:OM), recently sold shares of the company's common stock valued at $3,376. This transaction took place on November 15, 2024, according to a Form 4 filing with the Securities and Exchange Commission.
Nabeel sold 4,221 shares at a price of $0.80 per share. Following this transaction, Nabeel holds 310,767 shares directly. The sale was conducted to cover tax withholding obligations related to the vesting of restricted stock units (RSUs) granted to Nabeel on various dates, including March 8, 2021, August 5, 2021, January 26, 2022, and January 6, 2023. This "sell to cover" transaction does not represent a discretionary trade by Nabeel.
In other recent news, Outset Medical, Inc. reported robust financial results for Q3 2024, including record recurring revenue and substantial increases in treatment and service revenue. The company's Q3 revenue reached $28.7 million, surpassing guidance with treatment revenue up by 14% and service revenue by 22%. Year-to-date recurring revenue increased by 23%, with average selling prices for consoles rising 18%. The company's gross margin improved to 36.4%, with a net loss declining by 43% from the previous year. Outset Medical has raised its 2024 revenue guidance to approximately $112 million, with a gross margin expected in the mid-30% range. In other developments, the company's resilience in the face of natural disasters and its ongoing commercial transformation were also highlighted. Despite reporting a net loss of $20.2 million for the quarter, the company remains optimistic about long-term growth, with a strong order pipeline, nearly half in advanced sales stages.
InvestingPro Insights
Recent data from InvestingPro sheds additional light on Outset Medical's financial situation, providing context to the CFO's recent stock transaction. The company's market capitalization stands at $38.51 million, reflecting its current valuation in the medical devices sector.
InvestingPro Tips highlight some challenges facing Outset Medical. The company is "quickly burning through cash," which could be a concern for investors considering the CFO's recent stock sale, albeit for tax purposes. Additionally, the stock "has taken a big hit over the last week," with a 1-week price total return of -18.16%, potentially indicating market volatility or investor concerns.
On a more positive note, Outset Medical's liquid assets exceed its short-term obligations, suggesting some financial stability in the near term. The company also operates with a moderate level of debt, which may provide some flexibility in its operations.
For investors seeking a more comprehensive analysis, InvestingPro offers 13 additional tips for Outset Medical, providing a deeper understanding of the company's financial health and market position.
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