Smartsheet Inc . (NYSE:SMAR), a leader in the field of cloud-based platforms for work management, has reported a significant transaction by its President and CEO, Mark Mader. According to a recent SEC filing, Mader sold 20,000 shares of Class A Common Stock at a price of $51.78 per share, totaling over $1 million.
The sale took place on September 19, 2024, and was carried out under a Rule 10b5-1 trading plan, which Mader had previously adopted on March 27, 2024. Rule 10b5-1 plans allow company insiders to set up predetermined trading arrangements for selling stocks, providing them with a defense against potential accusations of insider trading.
Following the transaction, the CEO still holds a significant number of shares. His direct holdings amount to 588,762 shares of Smartsheet's Class A Common Stock. Additionally, there are indirect holdings through trusts for the benefit of his children, which include 51,250 shares held by the T49C Trust and 40,000 shares by the L38 Trust. It is important to note that Mader disclaims beneficial ownership of these indirect holdings, and they are managed by Douglas Porter, Trustee of the respective trusts.
Investors often monitor the buying and selling activities of company insiders as these can provide insights into their perspective on the company's current valuation and prospects. Smartsheet's stock performance and the CEO's transactions are likely to be closely watched by market participants for any potential implications.
In other recent news, Smartsheet Inc. has been making significant strides, with a 17% increase in both the second quarter's revenue and annualized recurring revenue (ARR), amounting to $276.4 million and $1.093 billion respectively. The company has also introduced a new pricing model, which has resulted in high engagement and numerous new transactions. This has led to a 50% increase from the previous year in customers with an ARR of over $1 million, now numbering 77.
Looking forward, Smartsheet expects its revenue for fiscal year 2025 to be between $1.116 billion and $1.121 billion, along with a rise in free cash flow to $240 million. Furthermore, Smartsheet's Chief Operating Officer, Stephen Branstetter, has decided to resign from his position, transitioning to an advisory role until November 18, 2024. This comes as the company shifts its executive structure, opting for a dual President model that includes a President of Go-to-Market and a President of Product & Innovation.
Simultaneously, Smartsheet is reportedly in acquisition discussions with a private equity group, according to KeyBanc Capital Markets, which maintains a Sector Weight rating on the company. KeyBanc's analysis suggests a fair value of around $50 per share for Smartsheet, indicating potential for a higher value in a private equity transaction. These developments are part of the company's recent efforts to further its growth and operational strategies.
InvestingPro Insights
As Smartsheet Inc. (NYSE:SMAR) navigates through the dynamic landscape of cloud-based work management solutions, recent transactions by company insiders such as President and CEO Mark Mader have put the spotlight on the company's financial health and future prospects. To provide a more comprehensive understanding of Smartsheet's current market position, we turn to key metrics and insights from InvestingPro.
InvestingPro Data shows that Smartsheet holds a market capitalization of $7.14 billion, highlighting its substantial presence in the industry. The company's revenue growth remains robust, with a 20.16% increase over the last twelve months as of Q2 2025. This is complemented by an impressive gross profit margin of 81.61% in the same period, which underscores the company's ability to maintain profitability in its core operations despite not being profitable over the last twelve months.
From an investment standpoint, two InvestingPro Tips can provide valuable context. Firstly, Smartsheet is noted for holding more cash than debt on its balance sheet, which can be a sign of financial stability and prudent capital management. Secondly, analysts have revised their earnings upwards for the upcoming period, with predictions that the company will be profitable this year. This optimism is reflected in the company's stock trading near its 52-week high and experiencing a strong return over the last three months.
For investors considering Smartsheet's stock, these insights may suggest a company that, despite recent insider sales, is on a positive trajectory with solid financial practices and promising growth prospects. For those seeking additional intelligence, there are more InvestingPro Tips available, providing deeper analysis and forecasts for informed decision-making.
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