Ouster, Inc. (NASDAQ:OUST) stock fell in Thursday’s premarket session after the company priced a $200 million underwritten public offering.

Ouster Prices $200M Offering

The lidar technology company will sell 3,621,876 common shares at $55.22 per share. Ouster expects gross proceeds of approximately $200 million before underwriting discounts, commissions, and other offering expenses.

The company also granted the underwriter a 30-day option to buy up to 543,281 additional shares at the public offering price, less underwriting discounts and commissions.

It plans to use the net proceeds for working capital and other general corporate purposes.

Recent BABA Compliance Update

The offering follows recent investor interest in Ouster after the company said its Rev8 family of OS digital lidar sensors complies with Build America, Buy America Act requirements.

The designation makes the sensors eligible for U.S. government-funded infrastructure projects.

Ouster said the validation supports the use of its technology across intelligent transportation systems, smart cities, transit networks, and tolling systems.

Read Also: Ouster Shares Rise As Defense Push, Analyst Targets Hike Boost Momentum

Technical Analysis

Despite Thursday’s weakness, Ouster remains in a strong long-term uptrend.

The stock is trading at $56.50, about 25.5% above its 20-day simple moving average of $44.86 and 103.5% above its 200-day SMA of $27.66.

The technical setup also remains constructive. The 20-day SMA is above the 50-day SMA, while the 50-day SMA crossed above the 200-day SMA in May, forming a bullish golden cross.

Momentum indicators also favor the bulls. The moving average convergence divergence (MACD) remains above its signal line, and the histogram is positive. That typically suggests buying momentum is improving.

The main question now is whether the current pullback is a normal pause within the broader uptrend or the beginning of a deeper correction. Traders will likely watch for the stock to establish a higher low before attempting another move higher.

Key resistance sits at the 52-week high of $63.79, reached in June. Initial support is near the 20-day SMA at $44.86.

OUST Stock Price Activity: Ouster shares were down 5.90% at $56.48 during premarket trading on Thursday, according to Benzinga Pro data.

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