Rupal S. Hollenbeck, a director at Blackbaud Inc. (NASDAQ:BLKB), recently sold a portion of her holdings in the company. According to a regulatory filing, Hollenbeck sold 1,800 shares of common stock on November 19, 2024, at a price of $81.72 per share. The transaction amounted to a total value of $147,096. Following this sale, Hollenbeck retains 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, leading Baird to adjust its rating of the company from Outperform to Neutral. The software company reported a 6.6% increase in overall revenue and a 6.8% rise in contractual recurring revenue, despite a 26% decrease in revenue from its EVERFI segment. The company's annual revenue guidance was revised to $1.150 billion to $1.160 billion due to EVERFI's underperformance.
Baird's downgrade was influenced by Blackbaud's moderated growth forecasts and the revised outlook for its core Social Sector. The new forecast suggests a mid-single-digit increase in top-line revenue, a decrease from previous expectations of growth rates above 7%.
Blackbaud also announced plans to spin out EVERFI, altering the forward-looking investment thesis for the company. The company continues to implement its stock repurchase strategy, aiming to buy back up to 10% of its common stock by year-end. These are among the recent developments at Blackbaud, as the company adjusts its strategy in response to changing market conditions.
InvestingPro Insights
The recent insider sale by Rupal S. Hollenbeck at Blackbaud Inc. (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 aligns 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 the insider sale, Blackbaud's financial metrics present a mixed picture. The company's revenue for the last twelve months as of Q3 2024 stood at $1.15 billion, with a modest growth of 5.81%. More impressively, Blackbaud's EBITDA growth over the same period was a robust 49.75%, suggesting improved operational efficiency.
An InvestingPro Tip notes that management has been aggressively buying back shares, which could be seen as a sign of confidence in the company's value. This buyback activity may 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 tips, providing a more comprehensive analysis of the company's financial health and market position.
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