Sarah E. Nash, a director at Blackbaud Inc. (NASDAQ:), recently sold 1,600 shares of the company’s common stock. The shares were sold at an average price of $83.464, totaling approximately $133,542. Following this transaction, Nash holds 22,123 shares directly. The sale was executed in multiple trades with prices ranging from $83.45 to $83.50, as per the company’s filing with the Securities and Exchange Commission.
In other recent news, Blackbaud Inc. has seen a shift in its financial outlook. The company’s latest earnings call revealed an overall revenue increase of 6.6% and a rise of 6.8% in contractual recurring revenue, despite a 26% drop in the revenue of its EVERFI segment. Blackbaud’s adjusted EBITDA margin is projected to be within the range of 33% to 34%, with non-GAAP earnings per share expected to be between $3.98 to $4.16.
Baird has adjusted its stance on Blackbaud, downgrading the stock from Outperform to Neutral and reducing the price target to $80 from the previous $92, due to moderated growth forecasts. The revised outlook for Blackbaud’s core Social Sector and a general reset of growth expectations were key factors in this decision.
Blackbaud has also revised its annual revenue guidance to $1.150 billion to $1.160 billion, reflecting the impact of EVERFI’s underperformance. The company continues its stock repurchase strategy, aiming to buy back up to 10% of its common stock by year-end. Goldman Sachs is advising on strategic options for the EVERFI segment, as part of recent developments in the company’s growth strategy.
InvestingPro Insights
In light of Sarah E. Nash’s recent stock sale, it’s worth examining Blackbaud Inc.’s current financial position and market performance. According to InvestingPro data, Blackbaud has a market capitalization of $4.24 billion and is trading near its 52-week high, with the stock price at 96.4% of its peak.
The company’s financial metrics present a mixed picture. While Blackbaud’s revenue for the last twelve months as of Q3 2023 stands at $1.15 billion, showing a 5.81% growth, its P/E ratio is relatively high at 83.24. This suggests that investors are pricing in strong future growth expectations.
InvestingPro Tips highlight that management has been aggressively buying back shares, which could be seen as a vote of confidence in the company’s prospects. Additionally, net income is expected to grow this year, potentially justifying the high valuation multiples.
However, it’s important to note that Blackbaud is trading at a high earnings multiple and high EBIT and EBITDA valuation multiples. This information, along with 12 other InvestingPro Tips, provides a more comprehensive view of the company’s financial health and market position.
For investors seeking deeper insights, InvestingPro offers additional tips and analysis that could be valuable in assessing Blackbaud’s investment potential in the context of recent insider selling activity.
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