Sarah E. Nash, a director Black Baud Inc. (NASDAQ: ) recently sold 1,600 shares of the company’s common stock. The shares were sold at an average price of $83.464, for a total of approximately $133,542. After this transaction, Nash directly owns 22,123 shares. Sales were executed in multiple trades with prices ranging from $83.45 to $83.50, according to the company’s filing with the Securities and Exchange Commission.
In other recent news, Blackbaud Inc. has seen a change in its financial outlook. The company’s latest earnings call showed overall revenue growth of 6.6% and contract recurring revenue growth of 6.8% despite a 26% decline in its EVERFI segment revenue. Blackbaud’s adjusted EBITDA margin is expected to be in the range of 33% to 34%, with GAAP non-share earnings expected to be in the range of $3.98 to $4.16.
Baird has adjusted its stance on Blackbaud, downgrading the stock to neutral from outperform and cutting the price target to $80 from a previous $92, due to moderate growth forecasts. A revised approach to Blackbaud’s core social sector and a general reset of growth expectations were key factors in the decision.
Blackbaud also lowered its annual revenue guidance to $1.160 billion from $1.150 billion, reflecting the impact of EVERFI’s poor performance. The company is continuing its stock repurchase strategy, aiming to buy back up to 10% of its common stock by the end of the year. Goldman Sachs is advising on strategic options for the EVERFI segment as part of recent developments in the company’s growth strategy.
InvestingPro Insights
In light of Sarah E. Nash’s recent stock sale, Blackbaud Inc. It is important to review the current financial position and market performance of According to InvestingPro data, Blackbaud has a market capitalization of $4.24 billion and is trading near its 52-week high, with the stock price at 96.4% of its peak.
The company’s financial metrics paint a mixed picture. While Blackbaud’s revenue is $1.15 billion for the trailing twelve months as of Q3 2023, showing growth of 5.81%, its P/E ratio is relatively high at 83.24. This suggests that investors are pricing in expectations of strong future growth.
Investing Pro Tips highlights that management is aggressively buying back shares, which can be seen as a vote of confidence in the company’s prospects. Additionally, net income is expected to increase this year, possibly justifying higher valuation multiples.
However, it is important to note that Blackbaud is trading at a high revenue multiple and high EBIT and EBITDA valuation multiples. This information, along with 12 other InvestingPro tips, provides a more comprehensive view of a company’s financial health and market position.
For investors seeking deeper insight, InvestingPro offers additional tips and analysis that may be valuable in evaluating Blackbaud’s investment potential in light of recent insider selling activity.
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