Insider Selling: Battery Partners IX LLC Unloads $725K Of Sprinklr Stock

Making a noteworthy insider sell on January 11, Battery Partners IX LLC, 10% Owner at Sprinklr CXM, is reported in the latest SEC filing.

What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Thursday outlined that LLC executed a sale of 60,424 shares of Sprinklr with a total value of $725,483.

The latest update on Friday morning shows Sprinklr shares up by 0.25%, trading at $12.15.

Get to Know Sprinklr Better

Sprinklr Inc is engaged in providing enterprise software that enables every customer-facing function across the front office, from Customer Care to Marketing, to collaborate across internal silos, and communicate across digital channels. Its products include Modern Marketing and Advertising, Morden Research, Modern Care, Core Platform, and Developer portal among others.

Financial Insights: Sprinklr

Revenue Growth: Over the 3 months period, Sprinklr showcased positive performance, achieving a revenue growth rate of 18.49% as of 31 October, 2023. This reflects a substantial increase in the company's top-line earnings. When compared to others in the Information Technology sector, the company excelled with a growth rate higher than the average among peers.

Profitability Metrics:

• Gross Margin: With a high gross margin of 75.07%, the company demonstrates effective cost control and strong profitability relative to its peers.

• Earnings per Share (EPS): Sprinklr's EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of 0.06.

Debt Management: With a below-average debt-to-equity ratio of 0.05, Sprinklr adopts a prudent financial strategy, indicating a balanced approach to debt management.

Evaluating Valuation:

• Price to Earnings (P/E) Ratio: Sprinklr's current Price to Earnings (P/E) ratio of 110.18 is higher than the industry average, indicating that the stock may be overvalued according to market sentiment.

• Price to Sales (P/S) Ratio: The P/S ratio of 4.82 is lower than the industry average, implying a discounted valuation for Sprinklr's stock in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Boasting an EV/EBITDA ratio of 95.24, Sprinklr demonstrates a robust market valuation, outperforming industry benchmarks.

Market Capitalization Highlights: Above the industry average, the company's market capitalization signifies a significant scale, indicating strong confidence and market prominence.

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The Impact of Insider Transactions on Investments

Investors should view insider transactions as part of a multifaceted analysis and not rely solely on them for decision-making.

Exploring the legal landscape, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated by Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and major hedge funds. These insiders are required to report their transactions through a Form 4 filing, which must be submitted within two business days of the transaction.

Highlighted by a company insider's new purchase, there's a positive anticipation for the stock to rise.

But, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

Breaking Down the Significance of Transaction Codes

Navigating through the landscape of transactions, investors often prioritize those unfolding in the open market, precisely detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies 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 Sprinklr's Insider Trades.

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