What happens to stocks if AI loses momentum?
Informatica Inc. (NASDAQ:INFA), a $5.5 billion market cap company with impressive gross profit margins of 80%, saw its Executive Vice President and Chief Revenue Officer John Arthur Schweitzer recently sell a portion of his holdings in the company. According to a regulatory filing, Schweitzer sold 11,503 shares of Informatica’s Class A common stock on March 10, 2025. The shares were sold at a weighted average price of $18.18, with individual sale prices ranging between $18.06 and $18.34. This transaction amounted to a total value of $209,124. According to InvestingPro analysis, the stock appears undervalued despite falling nearly 28% over the past six months.
Following the sale, Schweitzer retains ownership of 328,799 shares, which includes previously reported restricted stock units. The transaction was conducted under a Rule 10b5-1 trading plan, which Schweitzer adopted on December 9, 2024. InvestingPro subscribers can access 12 additional key insights about Informatica, including detailed valuation metrics and growth projections. The company maintains strong financial health with a current ratio of 1.82, indicating solid liquidity position.
In other recent news, Informatica has announced the appointment of Francis Santiago as its new Chief Accounting Officer, succeeding Mark Pellowski, who is retiring. Santiago has been with Informatica for over 13 years, previously serving as Corporate Controller. In financial updates, Informatica’s fourth-quarter results for 2024 revealed a slowdown in subscription revenue growth and guidance that fell short of expectations, leading DA Davidson to cut the stock’s price target to $20 while maintaining a Neutral rating. Goldman Sachs and BofA Securities also downgraded Informatica’s stock to Neutral, with both firms reducing their price targets to $20, citing challenges in customer renewals and revenue forecasts.
Goldman Sachs noted slower-than-expected cloud service transitions and higher churn rates as contributing factors. BofA Securities highlighted execution challenges and foreign exchange headwinds impacting revenue sensitivity. Cantor Fitzgerald also lowered its price target to $18, maintaining a Neutral rating, due to changes in contract renewal terms affecting revenue. Despite these challenges, Informatica reported a significant increase in cloud migration deals, which the company views positively for its long-term prospects. Investors and analysts will be closely watching Informatica’s efforts to address these issues and capitalize on cloud migration trends.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.