Insider Decision: Kevin Gregoire Offloads $787K Worth Of Blackbaud Stock

It was reported on July 16, that Kevin Gregoire, EVP at Blackbaud BLKB executed a significant insider sell, according to an SEC filing.

What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Tuesday showed that Gregoire sold 9,902 shares of Blackbaud. The total transaction amounted to $787,643.

Blackbaud's shares are actively trading at $77.23, experiencing a down of 0.6% during Wednesday's morning session.

Unveiling the Story Behind Blackbaud

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.

Blackbaud's Financial Performance

Revenue Growth: Over the 3 months period, Blackbaud showcased positive performance, achieving a revenue growth rate of 6.68% as of 31 March, 2024. This reflects a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Information Technology sector.

Insights into Profitability:

• Gross Margin: The company issues a cost efficiency warning with a low gross margin of 54.81%, indicating potential difficulties in maintaining profitability compared to its peers.

• Earnings per Share (EPS): Blackbaud's EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of 0.1.

Debt Management: With a high debt-to-equity ratio of 2.03, Blackbaud faces challenges in effectively managing its debt levels, indicating potential financial strain.

Understanding Financial Valuation:

• Price to Earnings (P/E) Ratio: The current Price to Earnings ratio of 189.51 is higher than the industry average, indicating the stock is priced at a premium level according to the market sentiment.

• Price to Sales (P/S) Ratio: The Price to Sales ratio is 3.74, 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): Blackbaud's EV/EBITDA ratio, lower than industry averages at 26.42, indicates attractively priced shares.

Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.

Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.

Uncovering the Importance of Insider Activity

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

In the context of legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as outlined by Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are obligated to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

Pointing towards optimism, a company insider's new purchase signals their positive anticipation for the stock to rise.

Despite insider sells not always signaling a bearish sentiment, they can be driven by various factors.

Transaction Codes Worth Your Attention

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.

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