In recent market activity, Sprinklr, Inc. (NYSE:CXM) reported that its Chief Financial Officer, Sarin Manish, sold shares of the company's Class A Common Stock. The transactions occurred over two consecutive days, with a total value exceeding $223,000.
On the first day, Manish sold 22,738 shares at an average price of $7.83, while the following day, an additional 5,750 shares were sold at an average price of $7.84. The sales were executed in multiple transactions with prices ranging from $7.82 to $7.895. The sales were part of a "sell to cover" transaction, which is a method used to satisfy the statutory tax withholding obligations related to the vesting of restricted stock units. This type of sale is mandated by the issuer's equity incentive plans and does not reflect a discretionary sale by the reporting person.
Following these transactions, Sarin Manish still holds a substantial number of shares in the company, with ownership totaling 743,168 shares of Sprinklr's Class A Common Stock after the reported sales.
Investors and followers of Sprinklr, Inc. should note that these transactions are part of the standard practices involving equity compensation and tax obligations. The details of the transactions, including the specific number of shares sold at varying prices within the reported range, are available upon request from the issuer, any security holder of the issuer, or the staff of the Securities and Exchange Commission.
In other recent news, Sprinklr Inc. reported an 11% year-over-year increase in total revenue to $197.2 million for the second quarter of fiscal year 2025. The company's subscription revenue also experienced a 9% growth, reaching $177.9 million. However, Sprinklr's operating margins and per-share earnings fell short of projections, with the operating margin reported at 8% and the per-share earnings at $0.06. In light of these developments, KeyBanc Capital Markets adjusted its outlook on Sprinklr Inc, reducing the price target to $12 from the previous $16, while keeping an Overweight rating on the company's shares. Similarly, Rosenblatt has subsequently lowered its price target on Sprinklr to $10.50 from the previous $11.00, while maintaining a Buy rating. Despite these adjustments, both firms express continued confidence in the long-term potential of Sprinklr. For the third quarter, Sprinklr projects total revenue to be between $196 million and $197 million, with subscription revenue estimated at $177.5 million to $178.5 million.
InvestingPro Insights
As investors digest the news of Sprinklr, Inc.'s (NYSE:CXM) CFO Sarin Manish's recent stock transactions, it's important to consider the broader financial context of the company. With a market capitalization of approximately $1.98 billion, Sprinklr is navigating through dynamic market conditions. One key factor to note is that management has been actively buying back shares, as indicated by InvestingPro Tips, which could signal confidence in the company's future prospects. Additionally, Sprinklr holds more cash than debt on its balance sheet, providing a solid financial footing amidst market volatility.
From a valuation standpoint, Sprinklr is currently trading at a high earnings multiple, with a P/E ratio of 41.91. While this might suggest a premium valuation, it's worth noting that analysts predict the company will be profitable this year, a sentiment supported by the fact that the company has been profitable over the last twelve months. Moreover, Sprinklr's revenue has seen a growth of 14.72% over the last twelve months as of Q1 2023, which could be an indicator of the company's ability to expand its business and generate increased earnings.
Despite the recent share price decline over the last six months, where the stock has taken a significant hit of approximately 39.69%, the company's fundamentals, such as a high gross profit margin of 74.22%, remain robust. These details are crucial for investors to consider as they assess the company's performance and future outlook. For those looking for more insights, there are additional InvestingPro Tips available on the platform, offering a deeper dive into Sprinklr's financial health and market position.
For more detailed analysis and additional InvestingPro Tips, interested readers can visit https://www.investing.com/pro/CXM.
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