Sprinklr, Inc. (NYSE:CXM) Chief Financial Officer Manish Sarin has sold a significant portion of his holdings in the company, according to recent filings. Over the course of two days, Sarin sold a total of 115,622 shares of Class A common stock, resulting in proceeds of over $1.4 million.
On March 18, 2024, Sarin sold 49,234 shares at a weighted average price of $13.03, amounting to a total of $641,519. The following day, he sold an additional 66,388 shares for an average price of $12.93 per share, totaling $858,396. The prices for these sales ranged from $12.70 to $13.195.
The transactions were partly related to the vesting of restricted stock units, as the sales were required to cover statutory tax withholding obligations. It's noted that the sale on March 18 was mandated by Sprinklr's equity incentive plans, which require the satisfaction of minimum statutory tax withholding obligations to be funded by a "sell to cover" transaction. This indicates that the sale was not a discretionary move by Sarin.
Furthermore, the sale on March 19 was executed under a pre-arranged Rule 10b5-1 trading plan, which Sarin had adopted on October 12, 2023. Rule 10b5-1 plans allow company insiders to sell shares at predetermined times to avoid accusations of trading on nonpublic information.
Following these transactions, Sarin still holds a substantial number of shares in the company, with 529,324 shares remaining in his possession.
Investors often monitor insider sales for signals about executives' confidence in their company's prospects. However, sales that occur under Rule 10b5-1 trading plans or as a result of tax obligations are generally viewed as less indicative of an insider’s belief in the company's future performance.
Sprinklr, headquartered in New York, specializes in customer experience management with its cloud-based platform. The company has not provided any commentary on these recent transactions.
InvestingPro Insights
As Sprinklr, Inc. (NYSE:CXM) sees its CFO Manish Sarin divesting shares, investors may look for additional financial metrics to gauge the company's current standing and future prospects. According to InvestingPro data, Sprinklr holds a market capitalization of approximately $3.59 billion. The company's Price to Earnings (P/E) ratio stands at a high 118.11, which suggests that investors are expecting high earnings growth in the future. This is supported by a relatively lower PEG ratio of 0.92, indicating that the company's earnings growth is potentially undervalued given its P/E ratio.
Revenue growth also appears strong, with a 19.53% increase over the last twelve months as of Q3 2024, reflecting the company's ability to expand its financial base. Moreover, Sprinklr's gross profit margin is robust at 75.67%, which demonstrates a high level of operational efficiency in generating profit from its revenues.
Among the InvestingPro Tips, it's noteworthy that Sprinklr is expected to be profitable this year, with analysts predicting positive net income growth. This is further supported by the fact that 12 analysts have revised their earnings estimates upwards for the upcoming period. Additionally, the company's liquid assets exceed its short-term obligations, which underscores a strong liquidity position. These insights are particularly relevant for investors considering the recent insider transactions and looking to understand the company's financial health in more detail.
For those interested in a deeper analysis, additional InvestingPro Tips are available, including insights on valuation multiples and dividend policies. There are 11 more tips listed on InvestingPro for Sprinklr, which can provide investors with a more comprehensive understanding of the company's financial outlook. To access these insights and more, visit https://www.investing.com/pro/CXM and use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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