Sprinklr, Inc.'s (NYSE:CXM) Chief Marketing Officer, Pattabhiraman Arun, has recently sold a significant amount of company stock, according to the latest filings. The executive parted with a total of 12,894 Class A Common Stock shares over two consecutive days, resulting in a transaction value exceeding $100,000.
On September 16, Arun sold 10,291 shares at an average price of $7.83, while on the following day, an additional 2,603 shares were sold at an average price of $7.84. The price range for these transactions was between $7.82 and $7.895. It should be noted that these sales were part of a "sell to cover" transaction, which is a common practice where shares are sold to cover tax withholding obligations related to the vesting of restricted stock units.
The transactions were not discretionary sales by Arun but were required to fulfill the statutory tax obligations as mandated by Sprinklr's equity incentive plans. This information was detailed in the footnotes of the SEC filing, which also stated that the executive is willing to provide full details of the sales upon request.
Following these transactions, Arun's direct ownership in the company has been adjusted to 446,344 shares of Class A Common Stock. These recent sales provide investors with an insight into the executive's trading activities and the ongoing financial dealings within Sprinklr, Inc.
Investors and shareholders tend to monitor such filings closely as they can sometimes provide indications of an insider's view of the company's financial health and future prospects. However, it is important to consider that the sale of stocks by company executives can be influenced by a variety of personal financial considerations and does not necessarily reflect a lack of confidence in the firm's future.
In other recent news, Sprinklr Inc. faced mixed outcomes in its latest earnings report. The company reported an 11% year-over-year increase in total revenue, hitting $197.2 million for the second quarter of fiscal year 2025. Subscription revenue also experienced a 9% growth, reaching $177.9 million. However, Sprinklr's operating margins and per-share earnings fell short of projections, with the operating margin reported at 8% and the per-share earnings at $0.06. Analyst firms KeyBanc Capital Markets and Rosenblatt have subsequently adjusted their price targets for the company, with KeyBanc reducing it to $12 and Rosenblatt lowering it to $10.50.
The recent developments also highlighted a shortfall in Sprinklr's subscription revenue against consensus estimates, leading to a reduced full-year expectation. Despite these challenges, Sprinklr continues to attract new customers like UBS, Ford (NYSE:F), T-Mobile, Grupo Bimbo, and Planet Fitness (NYSE:PLNT), demonstrating the company's ongoing refinement of its execution and go-to-market strategy. For the upcoming third quarter, Sprinklr projects total revenue to be between $196 million and $197 million, with subscription revenue estimated at $177.5 million to $178.5 million.
InvestingPro Insights
Sprinklr, Inc. (NYSE:CXM) has been under the investor's microscope recently, especially with the insider trading activities of its Chief Marketing Officer. Amidst these developments, it is crucial to consider the company's financial metrics and market performance to gain a comprehensive view of its standing. InvestingPro provides some insights that could be valuable in this context.
One of the noteworthy InvestingPro Tips for Sprinklr is that management has been actively buying back shares. This could indicate confidence from the management in the company's value proposition and future growth potential. Additionally, Sprinklr holds more cash than debt on its balance sheet, suggesting a solid financial position that can be reassuring for investors concerned about the company's liquidity and ability to manage obligations.
From a data perspective, Sprinklr's market capitalization stands at approximately $1.98 billion, reflecting the size and scale of the company in its sector. The P/E ratio, a measure of the company's current share price relative to its per-share earnings, is 41.91, which may be considered high, indicating that investors have high expectations of future earnings growth. However, the company's revenue growth over the last twelve months, as of Q1 2023, was a robust 14.72%, showcasing the company's ability to increase its sales in a competitive environment.
While the recent stock sales by an executive might raise questions, the InvestingPro Tips and real-time data provide a broader context. For those looking to delve deeper into Sprinklr's financials and stock performance, InvestingPro offers additional analysis and tips, with 10 more tips currently listed for CXM at https://www.investing.com/pro/CXM.
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