Ouster Inc. (NASDAQ:OUST) stock fell Friday after the lidar company completed a $191.9 million public offering, with investors weighing the impact of the new share issuance.
Public offerings often weigh on a stock because they increase the number of shares outstanding, diluting existing shareholders’ ownership.
The offering was also priced below the stock’s previous closing price, a discount that can trigger short-term selling as investors adjust to the lower valuation.
The decline also came as the broader technology sector weakened. The Nasdaq slipped 0.04%, while the S&P 500 gained 0.15%. The technology sector fell 0.3%, although Ouster underperformed the broader group.
Technical Pullback Follows Strong Rally
Ouster is trading about 3.5% below its 20-day simple moving average of $46.40, signaling a short-term pullback. However, the stock remains 13.1% above its 50-day moving average of $39.57 and 59.4% above its 200-day moving average of $28.09.
The longer-term trend remains positive. A golden cross formed in May when the 50-day moving average crossed above the 200-day moving average, a pattern often viewed as a bullish technical signal.
The relative strength index stands at 49.78, indicating neutral momentum. That suggests buying and selling pressure are currently balanced.
Technical traders may watch resistance near $49.50. Key support sits around $39.00, close to the 50-day moving average.
Earnings Outlook
The next major catalyst is the company’s estimated Aug. 6 earnings report.
Analysts expect Ouster to report a loss of 17 cents per share, improving from a loss of 38 cents a year earlier. Revenue is projected to rise to $50.86 million from $35.05 million.
The stock carries a consensus Buy rating with an average price forecast of $41.50. Recent analyst actions include Rosenblatt raising its forecast to $53 on May 27, Amerx initiating coverage with a Buy rating and a $43 forecast on May 11, and Cantor Fitzgerald downgrading the stock to Neutral on May 7.
OUST Stock Price Activity: Ouster shares were down 6.99% at $44.21 at the time of publication on Friday, according to Benzinga Pro data.
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