Mark Mader, President and CEO of Smartsheet Inc . (NYSE:SMAR), has sold a significant portion of his holdings in the company. On December 16 and 17, Mader sold a total of 52,916 shares of Class A Common Stock. The transactions were executed at prices ranging from $55.96 to $56.00 per share, amounting to approximately $2.96 million in total. According to InvestingPro data, these sales occurred as the stock trades near its 52-week high of $56.55, following an impressive 33.65% gain over the past six months.
These sales were conducted under a Rule 10b5-1 trading plan, previously established by Mader on March 27, 2024. Following these transactions, Mader retains direct ownership of 624,356 shares in Smartsheet. Additionally, Mader exercised options to acquire 47,916 shares at a price of $1.38 per share, with a total value of $66,124.
The stock sales and exercises reflect Mader's ongoing management of his equity stake in the company, which continues to be substantial even after the recent transactions.
In other recent news, Smartsheet Inc. reported a significant increase in third-quarter revenue, reaching $286.9 million, a 17% increase year-over-year, and surpassing analyst estimates. The company's adjusted earnings per share stood at $0.43, notably higher than the consensus forecast of $0.30. The company also saw its annualized recurring revenue (ARR) grow 15% year-over-year to $1.133 billion. Despite missing billing expectations and a slight decrease in ARR, Smartsheet demonstrated strong margin performance, beating EBIT projections by $13 million.
In other significant developments, Smartsheet shareholders approved a merger agreement with Einstein Parent, Inc. and its subsidiary, Einstein Merger Sub, Inc. The merger received overwhelming support from shareholders, with over 100 million votes in favor. This merger is expected to close in the fourth quarter of Smartsheet's fiscal year ending January 31, 2025.
Citi, after reviewing these developments, reiterated its Neutral rating on Smartsheet, with minor adjustments to its revenue estimates for the coming years. The firm also expressed that the proposed acquisition of Smartsheet by Vista Equity Partners and Blackstone (NYSE:BX) is likely to proceed. These are among the recent developments involving Smartsheet Inc.
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