PALO ALTO, CA—Brian K. McCarthy, the Chief Revenue Officer of Rubrik, Inc. (NASDAQ:RBRK), recently sold a significant portion of the company's stock, according to a regulatory filing. On December 6, McCarthy sold a total of 25,000 shares of Class A Common Stock. The transactions were executed at prices ranging from $62.80 to $64.65 per share, amounting to a total of approximately $1.6 million. The sale comes as Rubrik's stock has shown remarkable strength, with a 94% surge over the past six months according to InvestingPro data.
Following these transactions, McCarthy retains ownership of 312,545 shares in the company. The sales were conducted under a Rule 10b5-1 trading plan, which was adopted on June 27, 2024. This plan allows insiders to set up a predetermined schedule for selling stocks, providing a measure of protection against potential accusations of insider trading. According to InvestingPro analysis, the stock appears overvalued at current levels, with 10 analysts recently revising their earnings expectations upward. Subscribers can access detailed insider trading patterns and 11 additional ProTips for deeper insights into Rubrik's potential.
The weighted average price for a portion of these shares was reported, with individual transactions occurring between $62.50 and $63.07 per share. This information is available upon request from the company or the Securities Exchange Commission. With the stock trading near its 52-week high of $72.66, InvestingPro's technical indicators suggest the stock is currently in overbought territory.
In other recent news, Rubrik Inc. has been making waves with strong revenue growth and raised financial guidance for fiscal year 2025 (FY25). The cloud data management company reported an impressive 24.7% revenue growth, surpassing analysts' estimates. In response to these positive results, several analyst firms including BMO (TSX:BMO) Capital Markets, Truist Securities, and KeyBanc Capital Markets have increased their price targets for Rubrik, reflecting confidence in the company's performance.
Rubrik's third quarter was particularly strong, with earnings surpassing expectations and total revenue reaching $236.2 million, exceeding the $217.6 million estimate. The company also reported a notable increase in its Subscription Annual Recurring Revenue (ARR), nearing $1 billion, a 38% increase year-over-year. Furthermore, Rubrik's customer base has grown significantly, with 2,085 customers each contributing over $100,000 in annual recurring revenue.
Looking forward to FY25, Rubrik anticipates revenue between $860 million and $862 million, an increase from the previous $830 million to $838 million range. The company also forecasts an adjusted loss per share of $1.82 to $1.86, an improvement from the earlier forecast of $2.06 to $2.12 loss per share. These are recent developments that investors should note.
Rubrik's strong performance is largely attributed to growing demand for data security. The company's ability to execute effectively in the current market conditions, coupled with a general upward trend in software valuations, has led to the revised price targets and positive ratings from analyst firms. These recent developments underscore Rubrik's rapid expansion in the cybersecurity market and its potential for continued growth.
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