In a recent transaction, KKR Associates NGT L.P. and its affiliates sold shares in OneStream, Inc. (NASDAQ:OS) valued at approximately $191.2 million. The shares were sold at a price of $29.9925 each. This sale involved multiple entities associated with KKR, including KKR NGT (Dream) Blocker Parent L.P. and KKR NGT (Dream) Blocker Parent (EEA) L.P., among others. The transaction, dated November 18, 2024, resulted in the complete disposal of the shares by the reporting entities.
In other recent news, OneStream Inc. announced a proposed underwritten public offering of 15 million shares of its Class A common stock. The offering is led by Morgan Stanley (NYSE:MS), J.P. Morgan, and KKR, with several other financial institutions participating. The company plans to use the proceeds from its shares to buy LLC units from KKR Dream Holdings LLC.
In financial assessments, Piper Sandler maintained an Overweight rating on OneStream, raising the price target to $37. The firm noted a 4% top-line beat and a $1 million increase in the forecast for the fourth quarter in OneStream's recent results. Furthermore, BMO (TSX:BMO) Capital initiated coverage with an Outperform rating, emphasizing OneStream's potential for market share growth and strong capabilities in data management, consolidation, and artificial intelligence/machine learning.
TD (TSX:TD) Cowen maintained its Buy rating on OneStream, highlighting the company's solid growth trends and potential for further expansion. Loop Capital reiterated a Buy rating, pointing to the company's reduction in operating losses and the potential for market expansion. These recent developments suggest a positive outlook for OneStream, with various firms expressing confidence in the company's growth trajectory and market position.
InvestingPro Insights
Following the significant share sale by KKR Associates NGT L.P. and its affiliates, it's crucial to examine OneStream's current financial position and market performance. According to InvestingPro data, OneStream's market capitalization stands at $7.07 billion, reflecting its substantial presence in the software industry.
Despite the recent sell-off, OneStream has shown promising revenue growth, with a 20.69% increase in quarterly revenue as of Q3 2024. This growth trajectory is complemented by a robust gross profit margin of 63.9%, indicating strong pricing power and efficient cost management.
InvestingPro Tips highlight that OneStream holds more cash than debt on its balance sheet, suggesting a solid financial foundation. This liquidity position is further reinforced by the fact that the company's liquid assets exceed its short-term obligations, providing a buffer against immediate financial pressures.
However, investors should note that OneStream is currently trading at a high Price / Book multiple of 21.4, which may indicate that the stock is priced at a premium compared to its book value. Additionally, the company is not profitable over the last twelve months, with an adjusted operating income of -$271.91 million for the same period.
Interestingly, six analysts have revised their earnings upwards for the upcoming period, potentially signaling positive expectations for OneStream's future performance. This optimism is balanced against the stock's recent performance, as InvestingPro Tips indicate that the stock has taken a significant hit over the last week, with a 1-week price total return of -9.76%.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights that could provide valuable context to OneStream's financial situation and market position. There are 7 more InvestingPro Tips available for OneStream, which could offer deeper insights into the company's prospects following this major share sale.
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