Bullish indicating open at $55-$60, IPO prices at $37
LAS VEGAS— Rimini Street , Inc. (NASDAQ:RMNI) recently disclosed that Michael L. Perica, the company’s Executive Vice President and Chief Financial Officer, sold shares worth $21,849. The transaction occurred on February 3, 2025, with the shares being sold at an average price of $2.788 each, below the current trading price of $2.96. This sale, however, was an automatically-triggered "sell-to-cover" transaction to fulfill tax withholding obligations related to the vesting of Restricted Stock Units (RSUs) and was not initiated by Perica himself.
On the same day, Perica acquired 16,668 shares of common stock at no cost due to the vesting of RSUs. Following these transactions, Perica’s total direct ownership stands at 163,090 shares.
Rimini Street, a provider of enterprise software support services, continues to be a significant player in the business services sector, maintaining a robust gross profit margin of 60%. InvestingPro analysis suggests the stock is currently trading below its Fair Value, with additional insights available in the comprehensive Pro Research Report covering this $269 million market cap company.
In other recent news, Rimini Street has been in the spotlight following a favorable Appeals Court ruling. The court’s decision reversed many of the previous district court’s decisions against Rimini Street in its legal battle with Oracle (NYSE:ORCL), including requirements to end support of certain software environments and delete client data. This development has led to Craig-Hallum analyst upgrading Rimini Street shares from Hold to Buy, with a new price target of $6.00.
The reversal of these rulings has positive implications for Rimini Street’s appeal for a refund of the $58.5M in legal fees paid to Oracle, and suggests that Rimini Street may continue servicing certain software environments, contrary to the earlier court order. Despite previous legal challenges, Rimini Street demonstrated a strong financial quarter, with an increase in Annual Recurring Revenue (ARR), billings, and clients, as well as an uptick in retention rates.
The new price target reflects a valuation of 1.5 times Revenue and 12.2 times EBITDA. The Craig-Hallum analyst’s outlook suggests a substantial undervaluation of Rimini Street’s stock, considering its strong underlying momentum and recent cost reductions, even with conservative estimates that had previously assumed a 10% decline in growth. These developments are part of a series of recent events that could potentially influence the future of Rimini Street.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.