OSI Systems slips after unveiling planned $400 mln convertible bond offering

OSI Systems

17/11/2025 16:04

Updates stock activity, adds context

    ** Shares of OSI Systems OSIS.O down 4.7% at $260.70 on Mon as electronic equipment maker seeks capital raise

    ** Hawthorne, California-based firm early Mon announces private offering of $400 mln convertible bonds due Feb 2031

** Upon offering pricing, co expects to use up to ~$175 mln of net proceeds to repurchase its shares in negotiated transactions

** It intends to use remaining proceeds to repay a portion of its revolver, related fees and expenses, and for other general corporate purposes

** Co has about $4.6 bln market cap

    ** About 121,000 shares have traded so far on the session compared to stock's 10-DMA volume of roughly 215,000 shares, per LSEG

** With move on Mon, shares up ~56% YTD vs nearly 19% advance in the Nasdaq .IXIC.

** On Oct 30, co posted qtrly rev of $384.6 mln, up 12% yr/yr, and adj EPS $1.42, beating LSEG estimates, on robust demand across its security, optoelectronics and manufacturing, and healthcare divisions. It also raised FY top and bottom-line guidance

    ** 4 of 5 analysts rate OSIS "strong buy" or "buy", 1 has "hold"; median PT of $290 up from $260 a month ago, LSEG data shows

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))