Kevin P. Gregoire, the Executive Vice President and Chief Operating Officer of Blackbaud Inc. (NASDAQ:BLKB), recently sold 5,700 shares of the company's common stock. The transaction took place on November 13, 2024, with the shares sold at an average price of $86.5301 each, amounting to a total of $493,221. Following this sale, Gregoire retains ownership of 93,396 shares in the company. Blackbaud, headquartered in Charleston, South Carolina, is a provider of prepackaged software services.
In other recent news, Blackbaud, a leading cloud software company, reported a 6.6% increase in overall revenue and a 6.8% rise in contractual recurring revenue in its Third Quarter 2024 Earnings Conference Call. However, due to a 26% drop in revenue from its EVERFI segment, the company revised its annual revenue guidance to $1.150 billion to $1.160 billion. In response to this, Baird downgraded Blackbaud's stock rating from Outperform to Neutral and reduced the price target to $80 from the previous $92, citing moderated growth forecasts and weaker growth in the social sector.
The company also anticipates an adjusted EBITDA margin within the ranges of 33% to 34% and non-GAAP earnings per share between $3.98 to $4.16. Blackbaud continues its stock repurchase strategy, aiming to buy back up to 10% of its common stock by year-end. Baird's revised outlook for Blackbaud's core Social Sector and a general reset of growth expectations were key factors in the downgrade.
In other developments, Blackbaud is planning to spin out the underperforming EVERFI segment, with Goldman Sachs advising on strategic options. The company is also focusing on cost management, employee productivity, and strategic mergers and acquisitions. These recent developments reflect Blackbaud's commitment to maintaining growth and shareholder returns despite the challenges.
InvestingPro Insights
In light of Kevin P. Gregoire's recent stock sale, it's worth examining some key financial metrics and insights about Blackbaud Inc. (NASDAQ:BLKB) provided by InvestingPro.
As of the latest data, Blackbaud's market capitalization stands at $3.94 billion. The company's P/E ratio is currently 77.63, which is considered high relative to industry standards. This valuation is further supported by an InvestingPro Tip indicating that Blackbaud is trading at a high earnings multiple.
Despite the high valuation, there are positive signs for the company's financial health. An InvestingPro Tip reveals that Blackbaud's net income is expected to grow this year. This growth expectation is reflected in the company's PEG ratio of 0.24, suggesting that the stock might be undervalued relative to its earnings growth potential.
Blackbaud's revenue for the last twelve months as of Q3 2024 was $1.15 billion, with a revenue growth of 5.81% over the same period. The company's profitability is also noteworthy, with a gross profit margin of 55.21% and an operating income margin of 14.0%.
It's important to note that while Gregoire has sold a portion of his shares, management has been aggressively buying back shares, according to another InvestingPro Tip. This could signal confidence in the company's future prospects and potentially support the stock price.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for Blackbaud, providing a deeper understanding of the company's financial position and market performance.
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