EVP At Blackbaud Sells $567K Of Stock

Revealing a significant insider sell on November 14, Kevin Gregoire, EVP at Blackbaud BLKB, as per the latest SEC filing.

What Happened: Gregoire's recent Form 4 filing with the U.S. Securities and Exchange Commission on Thursday unveiled the sale of 6,619 shares of Blackbaud. The total transaction value is $567,096.

At Friday morning, Blackbaud shares are up by 0.21%, trading at $84.18.

Get to Know Blackbaud Better

Founded in 1981, Blackbaud provides software solutions designed to serve the "social good" community, including nonprofits, foundations, corporations, educational institutions, healthcare institutions, and individual change agents. Through M&A and organic product development efforts, the company has also moved into related areas outside core fundraising, notably into K-12 schools. The firm enables more than $100 billion in donations annually across a customer base in excess of 40,000 customers in over 100 countries.

Understanding the Numbers: Blackbaud's Finances

Revenue Growth: Over the 3 months period, Blackbaud showcased positive performance, achieving a revenue growth rate of 3.28% as of 30 September, 2024. This reflects a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Information Technology sector.

Insights into Profitability:

• Gross Margin: The company shows a low gross margin of 55.53%, indicating concerns regarding cost management and overall profitability relative to its industry counterparts.

• Earnings per Share (EPS): Blackbaud's EPS outshines the industry average, indicating a strong bottom-line trend with a current EPS of 0.41.

Debt Management: Blackbaud's debt-to-equity ratio is notably higher than the industry average. With a ratio of 1.9, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

Valuation Overview:

• Price to Earnings (P/E) Ratio: Blackbaud's stock is currently priced at a premium level, as reflected in the higher-than-average P/E ratio of 83.17.

• Price to Sales (P/S) Ratio: The Price to Sales ratio is 3.91, which is lower than the industry average. This suggests a possible undervaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio lower than industry averages at 20.2, Blackbaud could be considered undervalued.

Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

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Why Insider Transactions Are Important

While insider transactions should not be the sole basis for making investment decisions, they can play a significant role in an investor's decision-making process.

In legal terms, an "insider" refers to any officer, director, or beneficial owner of more than ten percent of a company's equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.

When a company insider makes a new purchase, that is an indication that they expect the stock to rise.

Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.

Essential Transaction Codes Unveiled

When it comes to transactions, investors tend to focus on those in the open market, detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S indicates a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Blackbaud's Insider Trades.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.