Shares of OSI Systems, Inc. (NASDAQ: OSIS) reached a new 52-week high during trading on October 30, 2023, following an upgrade from Bank of America. The financial institution raised its price target on the stock from $265.00 to $315.00, maintaining a “buy” rating. This positive sentiment propelled OSI Systems’ stock price to a peak of $283.23 before closing at $281.63, with a trading volume of 109,022 shares.
Analysts from other firms have also recently expressed optimistic views on OSI Systems. B. Riley increased its target price from $255.00 to $260.00 while reaffirming a “buy” rating. Meanwhile, JPMorgan Chase & Co. raised its price target from $242.00 to $255.00 and assigned a “neutral” rating. Roth Capital reiterated a “buy” rating, setting a price objective of $280.00, and Oppenheimer boosted its target from $270.00 to $280.00, also granting an “outperform” rating. Weiss Ratings issued a “buy (b)” rating for the company as well. Currently, seven analysts rate the stock as a buy, while one holds a “hold” rating. According to data from MarketBeat, OSI Systems holds a consensus rating of “Moderate Buy” with an average target price of $263.57.
Institutional Investors Increase Holdings
Recent activity among institutional investors indicates strong interest in OSI Systems. UBS Asset Management Americas LLC increased its stake in the company by 161.5% during the first quarter, now holding 877,393 shares valued at approximately $170.5 million. Mawer Investment Management Ltd. raised its stake by 67.0% in the third quarter, now owning 856,383 shares worth about $213.4 million. Geode Capital Management LLC and Hood River Capital Management LLC also expanded their positions, increasing their ownership by 0.6% and 1.0%, respectively.
In total, institutional investors own approximately 89.21% of OSI Systems’ stock, reflecting strong confidence in the company’s future prospects.
Strong Earnings Report and Financial Metrics
OSI Systems recently released its earnings report for the quarter ending October 30, 2023. The company reported earnings per share (EPS) of $1.42, exceeding the consensus estimate of $1.37 by $0.05. This performance marks an increase from $1.25 EPS reported during the same period last year. The company’s revenue reached $384.62 million, surpassing analysts’ expectations of $372.03 million, and reflecting an 11.8% year-over-year growth.
OSI Systems has established guidance for fiscal year 2026, projecting EPS between $10.200 and $10.480. Analysts anticipate the company will post an EPS of $9.22 for the current year.
Financially, OSI Systems maintains a solid position with a market capitalization of $4.79 billion and a price-to-earnings ratio of 32.44. The company’s debt-to-equity ratio stands at 0.49, while its quick and current ratios are 1.46 and 2.04, respectively. The firm has moving averages of $245.76 over fifty days and $230.26 over 200 days, indicating positive trends in its stock performance.
OSI Systems, which designs and manufactures electronic systems and components, operates across three segments: Security, Healthcare, and Optoelectronics and Manufacturing. The Security division provides a range of products, including baggage and parcel inspection systems, cargo and vehicle inspection, as well as radiation monitoring technologies.
With strong institutional backing and positive financial results, OSI Systems appears well-positioned for continued growth in the technology sector.
