Armon Dadgar, the Chief Technology Officer at HashiCorp, Inc. (NASDAQ:HCP), recently sold 35,904 shares of Class A Common Stock. The shares were sold at a weighted average price of $33.8567, totaling approximately $1.22 million. The transaction was conducted as part of a Rule 10b5-1 trading plan, which Dadgar adopted on September 7, 2023.
Following this sale, Dadgar holds a direct and indirect ownership of shares, including those held by trusts and entities under his control. Notably, 1,520,000 shares remain under his indirect ownership, with additional shares held in various trusts and entities such as the Armon Dadgar 2020 Charitable Trust and Black Swan III, LLC.
The sale was part of a broader strategy, as indicated by the trading plan, and reflects ongoing management of Dadgar's equity holdings in the company.
In other recent news, HashiCorp Inc. reported robust financial results for its second fiscal quarter, with revenues reaching $165.1 million, marking a growth rate of 15.3%. This surpassed both BTIG's projection of $158.3 million and the consensus estimate of $157.2 million. The company's cloud revenue also exceeded expectations, while its operating income was notably positive at $0.7 million, a significant improvement over the anticipated -$15.4 million. This marks the first instance of HashiCorp achieving non-GAAP operating income in the black. Furthermore, HashiCorp's earnings per share (EPS) of $0.08 outperformed both BTIG's and consensus estimates.
In the midst of these developments, HashiCorp is undergoing an acquisition by IBM (NYSE:IBM), which is expected to finalize by the end of 2024. Analyst firms have adjusted their outlooks accordingly, with BTIG maintaining a Neutral rating on HashiCorp and adjusting its fiscal year 2025 revenue estimate for the company to $661.6 million, up from $653.8 million. In addition, Citi has resumed coverage on HashiCorp with a neutral rating and a new price target of $35.00, following a review of the company's financial results. Lastly, KeyBanc has maintained its Sector Weight rating on HashiCorp, indicating that the stock is expected to perform in line with the average returns of the sector. These are the recent developments that investors should be aware of.
InvestingPro Insights
To provide additional context to Armon Dadgar's recent stock sale, it's worth examining some key financial metrics and insights from InvestingPro for HashiCorp, Inc. (NASDAQ:HCP).
According to InvestingPro data, HashiCorp's market capitalization stands at $6.86 billion, reflecting its significant presence in the tech sector. The company has demonstrated strong revenue growth, with a 15.72% increase in the last twelve months as of Q2 2025, reaching $627.62 million. This growth trajectory aligns with the company's position in the rapidly evolving cloud infrastructure automation market.
One of the InvestingPro Tips highlights that HashiCorp "holds more cash than debt on its balance sheet," indicating a strong financial position. This robust liquidity could provide reassurance to investors, especially in light of executive stock sales.
Another noteworthy InvestingPro Tip is that the company boasts "impressive gross profit margins." Indeed, the data shows a gross profit margin of 82.08% for the last twelve months as of Q2 2025, underscoring HashiCorp's efficiency in delivering its software solutions.
Despite these positive indicators, it's important to note that HashiCorp is currently not profitable, with a negative operating income of $207.08 million in the same period. However, analysts predict that the company will become profitable this year, as indicated by another InvestingPro Tip.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for HashiCorp, providing a deeper understanding of the company's financial health and market position.
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