Ouster Shares Present a Mixed Picture Amid Strong Growth and Insider Selling

The investment case for lidar technology company Ouster is sending conflicting messages to the market. A robust quarterly revenue performance and key strategic deals are juxtaposed against a wider-than-expected per-share loss and notable insider stock disposals, creating uncertainty for investors.

Operationally, Ouster delivered standout results for the third quarter of 2025. The company reported revenue of $39.5 million, a figure that not only represents a 41% year-over-year increase but also comfortably surpassed Wall Street's consensus estimate of $36.9 million. Supporting this top-line growth was a record quarterly shipment of 7,200 sensors.

The company is also advancing its market position in lidar and Physical AI through significant partnerships. A multi-year, multi-million dollar agreement with Komatsu is set to equip autonomous mining technology with Ouster's 3D lidar sensors. A separate collaboration with Constellis aims to integrate the company's technology into security platforms. Market participants are anticipating potential new catalysts from announcements at the upcoming Consumer Electronics Show (CES).

Profitability Concerns and Stock Price Weakness

Despite the impressive revenue growth, challenges with profitability persist. Ouster's adjusted earnings per share (EPS) came in at a loss of -$0.37, which was significantly worse than the -$0.16 loss analysts had forecasted.

This fundamental contrast was reflected in the stock's recent performance. On Friday, Ouster shares declined by 4.66% to close at $24.78, albeit on relatively light trading volume. From a technical perspective, the equity remains under selling pressure after recently triggering a downward reversal signal.

Should investors sell immediately? Or is it worth buying Ouster?

Insider Transactions Dampen Sentiment

Adding to the cautious tone are actions taken by the company's own executives. Over the past 90 days, corporate insiders, including the Chief Technology Officer and Chief Operating Officer, have sold shares worth approximately $3.04 million in total. These disposals were executed at an average price of $28.46 and reduced their direct holdings.

Institutional investors have also shown some reticence. The New York State Common Retirement Fund, for instance, cut its stake in Ouster by 39.3% during the second quarter.

Analyst Outlook Remains Bullish

In contrast to the insider selling, the analyst community continues to express a favorable long-term view. Investment firm Oppenheimer reaffirmed its "Outperform" rating on December 4, maintaining a price target of $39.00. The firm specifically highlighted Ouster's software-integrated offerings as a driver for improved customer retention and future profitability.

The broader Wall Street consensus currently averages a "Buy" recommendation. The median price target stands at $38.50, suggesting a potential upside of over 55% from the current trading level. The coming weeks will determine whether the company's fundamental strengths can ultimately outweigh these present mixed signals.