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Rubrik's chief revenue officer sells stock worth $2.06 million

Published 12/19/2024, 08:01 PM
RBRK
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Brian K. McCarthy, the Chief Revenue Officer of Rubrik, Inc. (NASDAQ:RBRK), recently sold a significant portion of his holdings in the company. According to a filing with the Securities and Exchange Commission, McCarthy sold 28,485 shares of Class A Common Stock at an average price of $72.34 per share, totaling approximately $2.06 million. The transaction comes as Rubrik, now valued at $12.6 billion, has seen its stock surge 125% over the past six months, according to InvestingPro data.

The transaction took place on December 17, 2024. Following this sale, McCarthy holds 346,560 shares in Rubrik. This sale was conducted to cover tax obligations related to the vesting and settlement of Restricted Stock Units (RSUs), as per the company's policy. Despite the insider sale, analysts maintain a strong bullish consensus on the stock, with price targets ranging from $47 to $82 per share.

In addition to the sale, McCarthy also engaged in several transactions involving Class B Common Stock and RSUs. These transactions included exercises and conversions of RSUs into Class B Common Stock, which are convertible into Class A Common Stock under certain conditions. However, these transactions did not involve any cash exchange.

Investors may find these transactions noteworthy as they reflect the executive's decision to liquidate a portion of his equity in the company.

In other recent news, Rubrik Inc has seen a series of positive developments. The data management company reported robust revenue growth of 24.7%, with total revenue reaching $236.2 million, surpassing the $217.6 million estimate. Rubrik also exceeded earnings estimates, reporting an adjusted loss per share of 21 cents, significantly better than the estimated loss of 40 cents per share. These strong results led to upward revisions in Rubrik's full-year 2025 guidance for key financial metrics, including revenue and earnings per share.

Several analysts have responded positively to these developments. Piper Sandler, Mizuho (NYSE:MFG) Securities, and BMO Capital Markets have all raised their price targets for Rubrik while maintaining positive ratings on the stock. The analysts' confidence in Rubrik's growth trajectory is largely attributed to the company's robust data management platform and its effectiveness in delivering top-tier cyber resiliency.

However, potential risks that could impact Rubrik's performance were also highlighted, including macroeconomic factors, overall IT spending trends, competitive pressures, customer concentration, the company's ongoing transition to different business models, potential free cash flow burn, and governance concerns. Despite these potential risks, the analysts suggest that Rubrik's valuation remains attractive based on its growth prospects in the cloud sector. These are recent developments that investors should note.

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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