Ouster Inc. (NASDAQ:OUST) shares are falling Thursday, appearing to give back gains from its earnings beat and a round of analyst upgrades. Here’s what you should know.
- Ouster stock is among today’s weakest performers. Why is OUST stock dropping?
Ouster Stock Falls After Earnings and Upgrade Rally
Ouster shares are pulling back Thursday after a sharp post-earnings rally. The lidar maker’s stock surged after its earnings report Tuesday evening, and analysts raised their views on the company Wednesday.
The report itself topped Wall Street’s forecasts on both lines. Sales reached $59.33 million, ahead of the $56.27 million analysts projected and up 50% from a year earlier, with product sales up 42% at $56 million. Ouster lost 20 cents a share, a better result than the 24-cent loss analysts had predicted.
Looking ahead, CEO Angus Pacala said Stereolabs camera shipments hit their best quarter ever, helped by added capacity for fast-growing robotics demand.
For the fourth quarter, Ouster guided to revenue between $61 million and $64 million, against the $62.03 million analysts had estimated.
Wednesday’s moves came from three firms. Amerx upgraded Ouster to Buy but trimmed its price target to $52.50. Cantor Fitzgerald moved the stock to Overweight with a $45 target, while Rosenblatt held its Buy rating and $53 target. Nine analysts cover the stock, and their average rating is Buy with a $53.50 target, within a range of $45 to $60.
Ouster Stock Technical Read: Slide Under the 200-Day
Thursday’s chart hinges on Ouster slipping under its upward-sloping 200-day line. The stock climbed from a $23.60 low on May 11 to a $63.79 peak on June 30, then gave back much of that run. Dropping beneath the long-term trend line today adds to the damage.
Trend, trading volume and price action all point the same way. Ouster crossed beneath the 200-day average, now at $32.50, and volume ran high as sellers piled in. The stock also opened lower at $31.51 after closing at $33.54 the day before, and it never returned to that close, which keeps weighing on any rebound. A close above the 20-day average of $31.45 would reverse the drop. The next floor sits at $27.50, and holding it would prevent fresh lows beyond those hit on Oct. 23.
OUST Shares Are Sliding
OUST Price Action: Ouster shares were down 13.12% at $29.14 at the time of publication on Thursday, according to Benzinga Pro.
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