In a recent move, Roger H. Lee, a ten percent owner of Sprinklr, Inc. (NYSE:CXM), has sold a significant portion of his holdings in the company. According to the latest filings, Lee sold 44884 shares at an average price of $7.83, and another 225000 shares at an average price of $7.37, totaling approximately $2,009,691.
The transactions took place on September 9 and September 11, with the sale prices for the shares ranging from $7.25 to $7.98. This information comes from a footnote in the filing, which also indicates that Lee is willing to provide full details of the number of securities sold at each price upon request.
The shares were held indirectly by Lee, as they are owned by The Lee Family Trust, where he serves as a co-trustee. It is important to note that while Lee is a ten percent owner, he disclaims beneficial ownership of these securities except to the extent of his proportionate pecuniary interest.
Following these transactions, Lee's indirect holdings in Sprinklr, through various entities and trusts, remain substantial. The entities include Battery Ventures IX, L.P., Battery Investment Partners IX, LLC, Battery Investment Partners Select Fund I, L.P., and Battery Ventures Select Fund I, L.P., with the respective shares owned following the transactions disclosed in the filing.
Investors often keep an eye on insider transactions as they can provide valuable insights into an insider's view of the company's value. While the reasons behind Lee's sale are not disclosed, the transactions are part of the public record and can be considered by investors when evaluating their positions in Sprinklr.
Sprinklr, Inc., headquartered in New York, specializes in prepackaged software services and has been a player in the industry with its customer experience management platform. As with any insider sale, market participants will be watching closely to see if this will have any impact on the company's stock performance in the near term.
In other recent news, Sprinklr Inc. reported an 11% year-over-year increase in total revenue to $197.2 million for the second quarter of fiscal year 2025. The company's subscription revenue experienced a 9% growth, reaching $177.9 million. Despite these figures, Sprinklr's operating margins and per-share earnings fell short of projections. Analyst firms KeyBanc Capital Markets and Rosenblatt have adjusted their outlook on Sprinklr, reducing their price targets but maintaining their respective Overweight and Buy ratings. These adjustments follow Sprinklr's recent earnings report and updated revenue guidance for fiscal year 2025. The company continues to attract new customers, including UBS, Ford (NYSE:F), T-Mobile, Grupo Bimbo, and Planet Fitness (NYSE:PLNT), and projects total revenue to be between $196 million and $197 million for the third quarter, with subscription revenue estimated at $177.5 million to $178.5 million. These recent developments highlight Sprinklr's focus on refining its execution and go-to-market strategy amid market challenges.
InvestingPro Insights
Amid the news of insider transactions by Roger H. Lee at Sprinklr, Inc. (NYSE:CXM), current and potential investors may find additional insights through InvestingPro metrics and tips. According to InvestingPro, management at Sprinklr has been actively buying back shares, which could indicate their confidence in the company's value and future prospects. Moreover, Sprinklr holds more cash than debt on its balance sheet, providing a solid liquidity position that could help the company navigate through uncertain economic conditions.
Looking at the real-time data, Sprinklr's market capitalization stands at $1.89 billion. The company's price-to-earnings (P/E) ratio is currently 39.68, which is above the industry average, suggesting a higher earnings valuation. Additionally, the revenue growth for the last twelve months as of Q1 2023 was a healthy 14.72%, reflecting a positive trend in the company's top-line performance.
However, it's worth noting that the stock has experienced a significant downturn over the past week, with a price total return of -14.32%. This recent performance may be of interest to investors considering the timing of Lee's sale and the potential implications for the stock's future movement. On the brighter side, analysts predict that the company will be profitable this year, and it has been profitable over the last twelve months, which may provide some reassurance to investors concerned about the company's earnings potential.
For those looking for deeper analysis, there are additional InvestingPro Tips available, including insights on the company's shareholder yield, trading multiples, and stock performance over various time frames. In total, InvestingPro offers 16 tips for Sprinklr, which can be accessed by visiting https://www.investing.com/pro/CXM, providing investors with a more comprehensive understanding of the company's financial health and market position.
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