Michael Burkland, a director at OneStream, Inc. (NASDAQ:OS), recently sold 9,541 shares of the company's Class A Common Stock. The transaction, which took place on November 27, 2024, was executed at a price of $31 per share, resulting in a total sale value of approximately $295,771.
This sale follows a series of transactions involving the conversion and acquisition of various classes of stock. On November 25, 2024, Burkland converted 9,541 Common Units into Class D Common Stock, which were subsequently converted into Class A Common Stock. These transactions were conducted at no cost.
The shares were sold as part of a follow-on public offering, where the underwriters exercised their option to purchase additional shares. The net price per share, after accounting for underwriting discounts and commissions, was $29.9925.
Burkland's transactions are linked to the Burkland Family Trust, where he holds voting and dispositive power over the securities. Following these transactions, Burkland no longer holds any Class A Common Stock directly.
In other recent news, OneStream Inc. announced a proposed underwritten public offering of 15 million shares of its Class A common stock, with over 9 million shares coming from selling stockholders and nearly 6 million shares from OneStream. Morgan Stanley (NYSE:MS), J.P. Morgan, and KKR are leading the offering. OneStream plans to use the proceeds from its shares to buy LLC units from KKR Dream Holdings LLC.
In terms of financial performance, OneStream recently reported a 4% top-line beat and a $1 million increase in the forecast for the fourth quarter. Its subscription growth rate hit 39%, surpassing the estimated 35%. Piper Sandler maintained an Overweight rating while raising the price target to $37, highlighting the company's impressive performance and promising growth prospects.
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, indicating confidence in the company's solid growth trends and potential for further expansion.
These recent developments suggest a positive outlook for OneStream, with various firms expressing confidence in the company's growth trajectory and market position. As always, investors are advised to focus on OneStream's performance relative to the upcoming third quarter and the full year's estimates to gauge the company's progress.
InvestingPro Insights
As OneStream, Inc. (NASDAQ:OS) undergoes significant insider transactions, it's crucial to consider the company's financial position and market valuation. According to InvestingPro data, OneStream boasts a market capitalization of $7.5 billion, reflecting its substantial presence in the software industry.
The company's financial health appears mixed. An InvestingPro Tip highlights that OneStream holds more cash than debt on its balance sheet, indicating a strong liquidity position. This is further supported by another tip noting that the company's liquid assets exceed short-term obligations, which could provide financial flexibility in the near term.
However, investors should be aware that OneStream is currently trading at a high revenue valuation multiple and a high Price / Book multiple of 21.57. This suggests that the market has high growth expectations for the company, which may explain the recent insider selling activity.
Despite not being profitable over the last twelve months, with an operating income margin of -59.17%, there's optimism about OneStream's future. An InvestingPro Tip reveals that analysts predict the company will be profitable this year. This positive outlook is reinforced by the fact that six analysts have revised their earnings upwards for the upcoming period.
For investors seeking more comprehensive insights, InvestingPro offers additional tips and data points to further evaluate OneStream's potential. The platform currently lists 8 tips for OS, providing a broader perspective on the company's financial health and market position.
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