Bentley Systems, Inc. (NASDAQ:BSY) Director Barry J. Bentley has sold 50,000 shares of Class B Common Stock, generating over $2.5 million from the sale. The transactions took place on September 30, 2024, and were reported to the Securities and Exchange Commission in a recent filing.
According to the filing, the shares were sold at a weighted average price of $50.5815, with individual sales prices ranging from $50.33 to $50.785. The sale was executed under a Rule 10b5-1 trading plan, which had been previously adopted by Bentley on June 12, 2024. This plan allows company insiders to establish pre-arranged plans to buy or sell shares at a predetermined time to avoid accusations of insider trading.
Post-sale, Bentley still retains a substantial interest in the company, holding 12,248,235 shares of Bentley Systems' Class B Common Stock directly. Additionally, he has an indirect ownership of 92,654 shares through a 401(K) Plan.
Investors tracking insider transactions often pay close attention to Form 4 filings, as they provide insights into executives' confidence in the company's financial health and future prospects. In the case of Bentley Systems, this recent sale by a key director may be of interest to current and potential shareholders.
For those interested in the full details of the transactions, including the specific number of shares sold at each price point within the reported range, Bentley has agreed to provide the information upon request to Bentley Systems, its security holders, or the SEC staff.
The sale was signed off by Michael T. Fischette, Attorney-in-Fact, on October 2, 2024, as indicated in the ownership document. Bentley Systems, headquartered in Exton, Pennsylvania, specializes in prepackaged software services and remains a significant player in the technology sector.
In other recent news, Bentley Systems, Incorporated showcased robust growth in Q2 of 2024, with an 11% increase in annual recurring revenue (ARR) and substantial growth in recurring subscription revenues. This financial health was further demonstrated by the announcement of a third-quarter cash dividend of $0.06 per share for 2024. Bentley Systems has also reported making significant strides in the market with the acquisition of 3D geospatial company, Cesium, to enhance its iTwin platform.
The integration of Cesium's 3D geospatial data capabilities with Bentley's iTwin platform is expected to offer comprehensive digital twins, from infrastructure networks to individual asset details. The CEO of Bentley Systems, Nicholas Cumins, and Patrick Cozzi, CEO of Cesium, both expressed optimism for the value this acquisition will bring to the developer ecosystem. Post-acquisition, Patrick Cozzi has been appointed as Bentley's chief platform officer.
Despite facing challenges in China and with its Cohesive digital integrated business, Bentley Systems maintains strong profitability and cash flow. Looking ahead, Bentley Systems anticipates ARR growth driven by E365 renewals, new logos in the SMB segment, and asset analytics deals. The company also plans to continue its adoption of digital twin technology across its portfolio. These are the recent developments within the company.
InvestingPro Insights
To provide additional context to Barry J. Bentley's recent stock sale, let's examine some key financial metrics and insights from InvestingPro for Bentley Systems (NASDAQ:BSY).
As of the latest data, Bentley Systems boasts a market capitalization of $15.86 billion, reflecting its substantial presence in the prepackaged software services industry. The company's financial performance has been noteworthy, with a revenue of $1.29 billion in the last twelve months as of Q2 2024, representing a 10.19% growth. This growth trajectory aligns with the company's position as a significant player in the technology sector.
One of the standout features of Bentley Systems is its impressive gross profit margin of 80.36% for the same period. This high margin is indicative of the company's efficiency in delivering its software services and is highlighted as one of the InvestingPro Tips. Such strong profitability metrics often contribute to investor confidence and may explain why directors like Barry J. Bentley maintain substantial holdings even after significant sales.
However, it's worth noting that Bentley Systems is trading at a relatively high P/E ratio of 42.14, which suggests that the stock is priced at a premium compared to its earnings. This valuation metric could be a factor for investors to consider when assessing the stock's current price levels, especially in light of insider transactions.
InvestingPro Tips also point out that while Bentley Systems is profitable and analysts predict continued profitability this year, there have been 7 analysts who have revised their earnings expectations downwards for the upcoming period. This information could be particularly relevant for investors analyzing the potential impact of the director's stock sale on market sentiment.
For those seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for Bentley Systems, providing a deeper dive into the company's financial health and market position.
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