In a recent transaction, KKR, a prominent private equity firm, sold a substantial portion of its holdings in OneStream, Inc. (NASDAQ:OS). The sale involved 9,593,134 shares of OneStream's Class A Common Stock, executed at a price of $29.9925 per share. This transaction resulted in a total value of approximately $191.2 million.
The shares were sold by various KKR entities, including KKR Dream Holdings LLC and KKR Dream Aggregator L.P., among others. Following the sale, these entities no longer hold shares of OneStream's Class A Common Stock. The transaction was part of a broader strategy involving the conversion and sale of shares, as indicated in the SEC filing.
KKR's decision to sell its stake comes after a series of conversions of Class D Common Stock into Class A Common Stock. This move reflects KKR's ongoing portfolio management strategy and its approach to maximizing returns from its investments.
In other recent news, OneStream Inc. announced an underwritten public offering of 15 million Class A common stock shares. The offering, led by Morgan Stanley (NYSE:MS), J.P. Morgan, and KKR, includes over 9 million shares from selling stockholders and nearly 6 million shares from OneStream. Proceeds from OneStream's shares will be used to buy LLC units from KKR Dream Holdings LLC.
In other developments, Piper Sandler maintained an Overweight rating for OneStream, raising the price target to $37 following the company's strong performance and promising growth prospects. OneStream's recent quarter results showed a 4% top-line beat and a $1 million increase in the forecast for the fourth quarter. Subscription growth rate hit 39%, surpassing the estimated 35%.
BMO Capital initiated coverage with an Outperform rating, highlighting OneStream's potential for market share growth. The firm expects OneStream to surpass conservative near-term financial estimates, positively impacting both revenue and earnings. TD Cowen also maintained its Buy rating on OneStream, citing solid growth trends and potential for further expansion.
Loop Capital reiterated a Buy rating, pointing to the company's reduction in operating losses and 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
As KKR exits its position in OneStream, Inc. (NASDAQ:OS), investors may be curious about the company's current financial standing and market performance. According to InvestingPro data, OneStream's market capitalization stands at $7.07 billion, with a price-to-book ratio of 21.4 as of the last twelve months ending Q3 2024. This high P/B ratio suggests that the market values OneStream significantly above its book value, potentially indicating investor optimism about the company's future prospects.
Despite KKR's sale, OneStream has shown some positive financial indicators. The company reported a revenue growth of 20.69% in Q3 2024, demonstrating its ability to expand its top line. Additionally, OneStream boasts a strong gross profit margin of 63.9% for the last twelve months, highlighting its efficiency in core business operations.
InvestingPro Tips reveal that OneStream holds more cash than debt on its balance sheet, which could provide financial flexibility and stability. This is particularly noteworthy given that the company is not currently profitable over the last twelve months. However, analysts predict that OneStream will become profitable this year, which could be a catalyst for future stock performance.
It's worth noting that OneStream's stock has taken a significant hit over the last week, with a 1-week price total return of -9.76%. This recent dip might present an opportunity for investors who believe in the company's long-term potential.
For those interested in a deeper analysis, InvestingPro offers 8 additional tips for OneStream, providing a more comprehensive view of the company's financial health and market position.
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