Rupel S. Hollenback, a director Black Baud Inc. (NASDAQ: ) recently sold a portion of its holdings in the company. According to a regulatory filing, Hollenbeck sold 1,800 shares of common stock on Nov. 19, 2024, at a price of $81.72 per share. The total transaction value was $147,096. Following the sale, Hollenbeck retained ownership of 6,796 shares in the company. Blackbaud, headquartered in Charleston, South Carolina, is a provider of prepackaged software services.
In other recent news, Blackbaud Inc. experienced a mixed financial quarter, prompting Baird to adjust its company rating from Outperform to Neutral. The software company reported a 6.6% increase in total revenue and a 6.8% increase in contractual recurring revenue despite a 26% decline in revenue from its EVERFI segment. EVERFI’s poor performance lowered the company’s annual revenue guidance to $1.160 billion from $1.150 billion.
Baird’s decline was influenced by Blackbaud’s forecast of moderate growth and a revised approach to his primary social sector. The new forecast suggests mid-single-digit growth in top-line revenue, which is higher than previously expected growth of 7%.
Blackbaud also announced plans to spin off EVERFI, changing the future investment thesis for the company. The company continues to execute on its stock repurchase strategy, aiming to buy back up to 10% of its common stock by the end of the year. These are among Blackbaud’s recent developments, as the company adjusts its strategy in response to changing market conditions.
InvestingPro Insights
Blackbaud Inc. Rupal S. Hollenbeck’s recent insider selling in ( NASDAQ:BLKB ) comes at a time when the company’s stock is trading near its 52-week high, with the price at 96.4% of its peak. This positioning is consistent with an InvestingPro tip indicating that Blackbaud is trading near its 52-week high, which could be a factor in the director’s decision to sell shares.
Despite internal sales, Blackbaud’s financial metrics paint a mixed picture. The company’s revenue for the trailing twelve months as of Q3 2024 was $1.15 billion, with a modest growth of 5.81%. More impressively, Blackbaud’s EBITDA growth during the same period was a robust 49.75%, suggesting better operational performance.
An InvestingPro tip notes that management is aggressively buying back shares, which could be seen as a sign of confidence in the company’s value. This buyback activity can help support the stock price, even as insiders like Hollenbeck reduce their holdings.
For investors seeking a deeper understanding of Blackbaud’s prospects, InvestingPro offers 12 additional recommendations, providing a more comprehensive analysis of the company’s financial health and market position.
This article was produced in collaboration with AI and was reviewed by an editor. See our T&C for more information.
