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HashiCorp, Inc.'s (NYSE:NASDAQ:HCP) Chief Technology Officer, Armon Dadgar, recently sold shares of the company's Class A Common Stock, totaling over $1.2 million. The transactions were executed on September 3, 2024, at weighted average prices ranging from $33.77 to $33.92 per share.
According to the latest SEC filing, Dadgar disposed of 35,904 shares, which, at the weighted average price of $33.8306 per share, amounted to a total value of $1,214,653. The sale was made in accordance with a Rule 10b5-1 trading plan that Dadgar had previously adopted on September 7, 2023. Rule 10b5-1 trading plans allow company insiders to sell a predetermined number of shares at a predetermined time to avoid accusations of insider trading.
Following the sale, the SEC filing indicated that Dadgar still holds a substantial amount of HashiCorp stock, both directly and indirectly. Shares owned following the transaction amounted to 1,520,000 Class A Common Stock indirectly through the Armon Dadgar 2020 Charitable Trust. Additionally, other holdings include 232,617 shares held directly, and significant indirect holdings through the Armon Memaran-Dadgar Living Trust and Black Swan III, LLC, which Dadgar controls.
It's worth noting that each share of Class B Common Stock, which Dadgar also holds, is convertible into one share of Class A Common Stock at any time, as per the company's policy, and has no expiration date. This provides additional flexibility in terms of potential future transactions.
Investors and followers of HashiCorp will likely keep an eye on insider transactions as they can provide insights into executive confidence in the company's future performance. HashiCorp, headquartered in San Francisco, California, specializes in services related to computer programming and is known for its suite of open-source tools for automating and managing IT infrastructure.
For those interested in further details of the transactions, the SEC filing includes a commitment from Dadgar to provide full information regarding the number of shares sold at each separate price upon request.
In other recent news, HashiCorp Inc. exhibited robust financial performance in the second fiscal quarter, with a 15% year-on-year revenue increase to $165.1 million, outpacing analyst projections of $157.25 million. However, the company reported a loss of $0.13 per share, missing expectations for breakeven earnings. The company's quarterly subscription revenue from their Cloud Platform also saw a significant rise.
In the midst of these developments, HashiCorp is navigating an ongoing acquisition process by IBM (NYSE:IBM), a transaction that has been approved by HashiCorp's shareholders and is expected to conclude by the end of 2024, pending regulatory approvals. Citi has recently resumed coverage on HashiCorp with a neutral rating and a new price target of $35.00, after reviewing the company's encouraging financial results and considering the impending acquisition.
KeyBanc has also maintained its Sector Weight rating on HashiCorp, indicating a neutral stance on the stock's performance. These recent developments, including strong financial results and the ongoing acquisition process, contribute to the evolving landscape for HashiCorp Inc.
InvestingPro Insights
As HashiCorp's Chief Technology Officer Armon Dadgar makes notable stock transactions, investors are keen to understand the financial health and market sentiment surrounding the company. According to recent metrics from InvestingPro, HashiCorp boasts a market capitalization of $6.87 billion, reflecting its substantial presence in the IT infrastructure automation market. Additionally, the company's gross profit margin stands at an impressive 82.08% for the last twelve months as of Q2 2025, highlighting its efficiency in generating revenue relative to its cost of goods sold.
Moreover, HashiCorp has experienced a significant price uptick over the last six months, with a total return of 33.07%, suggesting growing investor confidence. This aligns with one of the InvestingPro Tips that points out analysts' predictions of the company turning profitable this year. Despite not paying dividends, HashiCorp's financial stability is further underscored by another InvestingPro Tip highlighting that the company holds more cash than debt on its balance sheet, which is a strong indicator of financial resilience.
Interested in more insights? InvestingPro provides a comprehensive list of additional tips to help investors make informed decisions, including three analysts revising their earnings upwards for the upcoming period, and the stock's low price volatility, among others. To explore these further, visit the dedicated page for HashiCorp on InvestingPro.
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