Outset Medical general counsel sells $5,530 in stock

SAN JOSE, CA—John L. Brottem, the General Counsel of Outset Medical (TASE:BLWV), Inc. (NASDAQ:OM), a medical device company with a market capitalization of $48.5 million, recently sold shares of the company’s common stock. According to InvestingPro data, the company’s stock has shown significant volatility, with a notable 46% gain over the past six months despite challenging cash flow metrics. According to a recent SEC filing, Brottem sold 6,145 shares on February 18, 2025, at a price of $0.90 per share. The total value of the transaction amounted to $5,530. Based on InvestingPro’s Fair Value analysis, the stock appears undervalued at current levels, with 12 additional ProTips available for subscribers tracking insider transactions and company fundamentals.

Following this transaction, Brottem holds 175,043 shares of Outset Medical. The sale was conducted to cover tax withholding obligations related to the vesting of restricted stock units (RSUs) granted to Brottem on several occasions, including March 15, 2021, January 6, 2023, and January 12, 2024. This "sell to cover" transaction was not a discretionary trade by Brottem. The company operates with a moderate debt level and maintains strong liquidity, with current assets exceeding short-term obligations by a factor of 6.5x.

In other recent news, Outset Medical has resolved all concerns raised in a Warning Letter from the U.S. Food and Drug Administration, marking a significant regulatory milestone. The FDA’s clearance underscores the company’s dedication to maintaining high standards in its offerings. Additionally, Outset Medical has amended its corporate bylaws to simplify stockholder voting, allowing decisions to be made by a simple majority of votes cast, which aligns with standard voting practices. In financial developments, the company completed a private placement financing arrangement estimated at approximately $169 million, supplemented by a $100 million credit agreement with Perceptive Credit Holdings IV, LP.

Outset Medical has also issued Series A Non-Voting Convertible Preferred Stock and repaid its senior credit facilities. BTIG analyst Maria Thibault has adjusted the company’s price target to $3.00 from $4.00 while maintaining a Buy rating, citing financial developments and a revised valuation model. The issuance of Series A Preferred Stock includes dividends and potential conversion into common stock, subject to stockholder approval. These moves are part of a strategic financial restructuring to bolster the company’s balance sheet.

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