In a recent transaction, Darien Spencer, the Chief Operating Officer of Ouster, Inc. (NYSE:OUST), a company specializing in general industrial machinery and equipment, sold a total of 286 shares of common stock at a price of $4.84 per share, amounting to $1,384.
The sale took place on March 18, 2024, and was disclosed in a filing with the Securities and Exchange Commission (SEC) dated March 19, 2024. According to the filing, the shares sold by Spencer were to cover withholding taxes incurred upon the vesting and settlement of restricted stock units. This common practice is often initiated by the issuer on behalf of the reporting person.
Following the transaction, Spencer's ownership in Ouster stands at 252,873 shares of common stock. The company, which underwent a name change from Colonnade Acquisition Corp. in July 2020, is incorporated in Delaware and operates out of San Francisco, California.
Investors often keep an eye on insider transactions as they may provide insights into the executive's view of the company's current valuation and future prospects. The filing for this particular transaction was signed by Megan Chung, acting as attorney-in-fact for Darien Spencer.
InvestingPro Insights
As we delve into the financial health and market performance of Ouster, Inc. (NYSE:OUST), certain metrics and insights provided by InvestingPro stand out. The company currently holds a market capitalization of $201.43 million, indicating its size within the general industrial machinery and equipment sector. Despite Ouster's impressive revenue growth of 66.35% over the last twelve months as of Q3 2023, the company's gross profit margin during the same period was relatively low at 8.65%. This suggests that while sales are increasing, the cost of goods sold is taking a significant bite out of revenues.
Investors should also note the stock's volatility, as indicated by the 28.26% drop in the price total return over the last three months leading up to the current year's day 79. This volatility is further underscored by the company's stock price being at 51.61% of its 52-week high, reflecting significant fluctuations that could influence investment decisions.
Two InvestingPro Tips that are particularly relevant in light of the recent insider transaction include the fact that Ouster is quickly burning through its cash and that analysts do not anticipate the company will be profitable this year. These insights may offer context to the COO's decision to sell shares for tax withholding purposes and could be critical for investors trying to gauge the company's near-term financial stability and longer-term growth prospects.
For those looking to explore further, InvestingPro provides additional tips on Ouster, Inc., which can be accessed by visiting the dedicated page at https://www.investing.com/pro/OUST. With the use of the coupon code PRONEWS24, readers can avail themselves of an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking a wealth of information including 12 more InvestingPro Tips to help inform their investment strategy.
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