In a recent transaction, Mark Mader, the President and CEO of Smartsheet Inc . (NYSE:SMAR), sold shares of the company's Class A Common Stock. On October 2, 2024, Mader sold 5,000 shares at a price of $55.35 per share, totaling $276,750. Following the transaction, the CEO still held a significant number of shares, maintaining a stake of 583,762 shares directly under his name.
This sale was carried out in accordance with a Rule 10b5-1 trading plan, which Mader had previously adopted on March 27, 2024. Rule 10b5-1 plans allow company insiders to sell a predetermined number of shares at a predetermined time to avoid accusations of insider trading.
Additionally, it's worth noting that Mader has indirect holdings through trusts for the benefit of his children. Specifically, the T49C Trust and L38 Trust, both managed by trustee Douglas Porter, hold 51,250 and 40,000 shares, respectively. Mader has disclaimed beneficial ownership of these shares, and their inclusion in this report is not an admission of beneficial ownership for any legal purposes.
Investors often monitor insider transactions as they provide insights into an executive’s perspective on the company's current valuation and future prospects. However, it is important to note that such sales can be motivated by a variety of personal financial considerations and not necessarily a reflection of the company's performance.
In other recent news, Smartsheet Inc. has agreed to be acquired by private equity firms Blackstone (NYSE:BX) and Vista Equity Partners in a deal valued at approximately $8.4 billion. The acquisition price is set at $56.50 per share, reflecting an equity value of Smartsheet. This significant development has led to changes in stock ratings. UBS downgraded Smartsheet's stock from Buy to Neutral, RBC Capital raised its price target for Smartsheet to $56.50, while Canaccord Genuity, William Blair, and JPMorgan (NYSE:JPM) adjusted their ratings to align with the acquisition price.
In addition to the acquisition, Smartsheet announced a 17% increase in revenue for the second quarter of fiscal year 2025, totaling $276.4 million, and a similar rise in its annualized recurring revenue, reaching $1.093 billion. These are notable developments in the company's financial performance.
Furthermore, Smartsheet's Chief Operating Officer, Stephen Branstetter, has transitioned to an advisory role as part of a restructuring in the company's executive structure. These recent developments mark a new phase for Smartsheet as it transitions from a public entity to a privately held company under the ownership of Blackstone and Vista Equity Partners.
InvestingPro Insights
To provide additional context to Mark Mader's recent stock sale, let's examine some key financial metrics and insights from InvestingPro for Smartsheet Inc. (NYSE:SMAR).
According to InvestingPro data, Smartsheet's market capitalization stands at $7.72 billion, reflecting its significant presence in the software industry. The company's revenue for the last twelve months as of Q2 2025 was $1.04 billion, with a robust revenue growth of 20.16% over the same period. This growth trajectory aligns with an InvestingPro Tip indicating that net income is expected to grow this year.
Smartsheet's gross profit margin is particularly noteworthy at 81.61%, which InvestingPro highlights as an "impressive gross profit margin." This strong profitability at the gross level suggests that the company has effective pricing power and cost management in its core operations.
The stock's recent performance has been strong, with InvestingPro data showing a 28.42% price return over the last three months and a 45.45% return over the past six months. This aligns with another InvestingPro Tip that notes Smartsheet is trading near its 52-week high, currently at 99.8% of that level.
While these metrics paint a positive picture, it's important to note that Smartsheet was not profitable over the last twelve months, as pointed out by one of the InvestingPro Tips. However, analysts predict the company will be profitable this year, which could explain the optimistic market sentiment reflected in the stock's recent performance.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for Smartsheet, providing a deeper understanding of the company's financial health and market position.
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