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Blackbaud COO Gregoire sells $567,096 in stock

Published 11/14/2024, 05:43 PM
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Kevin P. Gregoire, Executive Vice President and Chief Operating Officer of Blackbaud Inc. (NASDAQ:BLKB), has reported selling 6,619 shares of the company's common stock. The shares were sold at a weighted average price of $85.677, resulting in a total transaction value of $567,096. This sale leaves Gregoire with 99,096 shares owned directly following the transaction. The sale was executed in multiple trades at prices ranging from $85.53 to $85.99.

"In other recent news, Blackbaud Inc. reported a 6.6% increase in overall revenue and a 6.8% rise in contractual recurring revenue in its Third Quarter 2024 Earnings Conference Call, despite a 26% drop in revenue from its EVERFI segment. The company adjusted its annual revenue guidance to $1.150 billion to $1.160 billion, reflecting EVERFI's underperformance. Additionally, Blackbaud projected an adjusted EBITDA margin within the range of 33% to 34% and non-GAAP earnings per share between $3.98 to $4.16.

In terms of analyst ratings, Baird recently downgraded Blackbaud's stock from Outperform to Neutral and reduced the price target to $80, citing a moderated growth forecast and concerns about the company's core business segments.

Among other recent developments, Blackbaud continues its stock repurchase strategy, aiming to buy back up to 10% of its common stock by the year's end. The company is also focusing on cost management, employee productivity, and strategic mergers and acquisitions, with Goldman Sachs advising on strategic options for the underperforming EVERFI segment. These developments underscore Blackbaud's commitment to maintaining growth and shareholder returns in light of recent challenges."

InvestingPro Insights

In light of Kevin P. Gregoire's recent stock sale, it's worth examining Blackbaud's current financial position and market performance. According to InvestingPro data, Blackbaud's market capitalization stands at $4.17 billion, reflecting its significant presence in the software industry. The company's revenue for the last twelve months as of Q3 2023 was $1.15 billion, with a modest growth of 5.81% over the same period.

An InvestingPro Tip highlights that management has been aggressively buying back shares, which could be seen as a vote of confidence in the company's future prospects. This buyback activity is particularly interesting when juxtaposed with the insider sale reported in the article.

Another relevant InvestingPro Tip indicates that Blackbaud is trading near its 52-week high, with the current price at 94.85% of that peak. This aligns with the timing of the insider sale, as executives often sell shares when prices are favorable.

It's worth noting that Blackbaud's P/E ratio (adjusted) stands at 52.89, which some investors might consider high. However, this should be balanced against the company's PEG ratio of 0.26, suggesting that the stock might be undervalued relative to its expected growth.

For investors seeking a more comprehensive analysis, InvestingPro offers 12 additional tips for Blackbaud, providing a deeper understanding of the company's financial health and market position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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