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Outset Medical (TASE:BLWV), Inc. (NASDAQ:OM), a company specializing in electromedical apparatus whose stock has declined 75% over the past year, announced today a one-for-fifteen reverse stock split of its common stock, which has been effected as of the start of trading. According to InvestingPro data, the company’s market capitalization stands at $39.34 million. This corporate action follows the authorization by the company’s stockholders at a special meeting held on March 5, 2025, to allow the Board of Directors to implement the reverse stock split within a range of 1:10 to 1:15 shares.
The Board decided on a one-for-fifteen ratio on March 7, 2025, and subsequently filed an amendment to the company’s Charter to formalize the reverse stock split. The split-adjusted trading commenced today with a new CUSIP number, 690145206. Despite recent challenges, InvestingPro analysis shows the company maintains strong liquidity with a current ratio of 5.69, indicating solid short-term financial stability.
In line with the reverse stock split, no fractional shares of common stock will be issued. Stockholders who would have received a fractional share will instead be compensated with a cash payment equivalent to the fractional share’s value, calculated based on the closing price of Outset Medical’s common stock on the last trading day before the reverse stock split became effective.
The amendment to the Charter, as filed with the Secretary of State of Delaware, is included as an exhibit to the company’s Current Report on Form 8-K. This press release statement is based on information contained in that SEC filing. Track corporate actions and access comprehensive financial analysis with InvestingPro, which offers detailed research reports on over 1,400 US stocks, including Outset Medical.
In other recent news, Outset Medical reported its Q4 2024 earnings, revealing a better-than-expected EPS of -$0.37, surpassing analyst forecasts of -$0.43. The company’s revenue reached $29.5 million, slightly exceeding projections, although it represented a 3% year-over-year decline. Outset Medical has also announced a reverse stock split at a ratio of one-for-fifteen, which will reduce the number of shares from approximately 265 million to about 17 million, effective March 20, 2025. This move is intended to consolidate the company’s shares without altering the percentage ownership of existing shareholders. Additionally, Outset Medical filed a Certificate of Correction to rectify a clerical error in its preferred stock documentation, which led to a conversion of 842,753 shares of Series A Preferred Stock into 210,688,250 shares of common stock. This conversion significantly increased the number of common shares in circulation. The company’s recent financial results and corporate actions reflect efforts to improve operational efficiency and financial stability. These developments are part of Outset Medical’s ongoing strategy to strengthen its market position and enhance shareholder value.
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