Blackbaud’s CTO McDearis sells $121,474 in shares

Published 18/03/2025, 22:20
Blackbaud’s CTO McDearis sells $121,474 in shares

Kevin McDearis, the Executive Vice President and Chief Technology Officer of Blackbaud Inc. (NASDAQ:BLKB), recently sold 1,916 shares of the company’s common stock. The transaction, which took place on March 17, was executed at a price of $63.40 per share, amounting to a total sale value of $121,474. Following this transaction, McDearis holds 74,805 shares in the company. The sale comes as Blackbaud trades near its 52-week low of $62.99, with InvestingPro analysis indicating the stock is currently undervalued.

The sale was conducted under a Rule 10b5-1 trading plan, which McDearis adopted on November 27, 2024. These plans allow company insiders to set up a predetermined schedule for selling stocks, helping avoid potential accusations of insider trading. Despite recent market challenges, with the stock down about 23% over the past six months, InvestingPro analysis reveals management’s commitment through share buybacks, and analysts expect the company to return to profitability this year. Get access to 10+ additional exclusive ProTips and comprehensive valuation metrics with an InvestingPro subscription.

In other recent news, Blackbaud reported its fourth-quarter 2024 earnings, revealing an earnings per share (EPS) of $1.08, which exceeded analyst expectations of $1.06. However, revenue for the quarter was slightly below forecasts, coming in at $302.2 million against an anticipated $305.28 million. For the full year, Blackbaud achieved a revenue of $1.155 billion, reflecting a 5.2% organic growth rate. The company has set its revenue guidance for 2025 between $1.115 billion and $1.125 billion, with EBITDA margins expected to range from 34.9% to 35.9%.

Analyst firms have weighed in on Blackbaud’s performance, with Evercore ISI initiating coverage with an In Line rating and a price target of $80, while Raymond (NSE:RYMD) James maintained an Outperform rating with a price target of $95. Both firms noted the company’s revenue shortfalls and strategic investments impacting free cash flow. Blackbaud’s initial free cash flow guidance for fiscal year 2025 is notably lower than expected, attributed to several one-time factors. The company plans to repurchase 3-5% of its outstanding shares in 2025, following a 10% buyback in 2024.

Blackbaud is also focusing on AI-driven innovations, such as the Blackbaud CoPilot, which aims to enhance customer interactions and streamline operations. The company is transitioning its consulting force in India into Blackbaud employees, which is part of its strategic investments to drive future growth. Despite challenges, Blackbaud’s Gross Dollar Retention remained steady at 92%, and the company continues to explore opportunities for upselling AI solutions as more customers move off on-premise solutions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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