Sprinklr, Inc. (NYSE:CXM) Chief Culture & Talent Officer Diane Adams has sold a total of $42,018 worth of company stock, according to a recent SEC filing. The transactions took place over two consecutive days, with shares being sold at prices ranging from $7.83 to $7.84.
The filing indicates that on September 16, 2024, Adams sold 4,282 shares of Class A Common Stock at an average price of $7.83 per share. The following day, on September 17, an additional 1,083 shares were sold at an average price of $7.84. These sales were executed to cover statutory tax withholding obligations related to the vesting of restricted stock units, as mandated by Sprinklr's equity incentive plans. The company requires that these obligations be satisfied through a "sell to cover" transaction.
Footnotes in the SEC filing reveal that the prices reported are weighted averages, with the actual sales occurring at various prices within the stated ranges. Adams has committed to providing detailed information regarding the number of shares sold at each separate price upon request from the Issuer, any security holder of the Issuer, or the staff of the Securities and Exchange Commission.
Following these transactions, Adams still holds a significant number of shares in the company, totaling 389,857 shares of Class A Common Stock, as per the post-transaction amounts listed in the filing.
Investors often monitor insider sales as they can provide insights into an executive's perspective on the company's current valuation. However, it's important to note that sales to cover tax obligations are a routine part of compensation for executives and may not necessarily signal a lack of confidence in the company's future prospects.
Sprinklr, headquartered in New York, specializes in prepackaged software services and continues to be a notable player in the technology sector.
In other recent news, Sprinklr Inc. revealed 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 saw a 9% growth, reaching $177.9 million. Despite this, the company's operating margins and per-share earnings fell short of projections, leading to a downward adjustment in analysts' expectations. KeyBanc Capital Markets and Rosenblatt have both reduced their price targets for Sprinklr, to $12 and $10.50 respectively, while maintaining their respective Overweight and Buy ratings. The revisions follow recent developments such as a shortfall in subscription revenue against consensus estimates, a reduced full-year expectation, and a worrying pattern of existing customers reducing their spending upon renewal. 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. Despite these challenges, the analysts express continued confidence in the long-term potential of Sprinklr.
InvestingPro Insights
Amidst the news of insider sales at Sprinklr, Inc. (NYSE:CXM), it's worth considering some financial metrics and market performance data to gain a broader perspective on the company's current standing. According to InvestingPro, Sprinklr has demonstrated resilience with a notable gross profit margin of 74.22% over the last twelve months as of Q2 2023. This high margin suggests that the company retains a significant portion of its revenue after accounting for the costs of goods sold, indicating efficient operations and a potentially strong competitive position in its industry.
Despite recent insider sales, Sprinklr's management has been actively engaged in share buybacks, which could be a sign of confidence in the company's value and future prospects. This is one of the InvestingPro Tips that can be considered when evaluating the company's actions in relation to its stock performance. Additionally, Sprinklr's financial health is underscored by its cash position, as it holds more cash than debt on its balance sheet, providing it with financial flexibility.
InvestingPro Data also highlights that Sprinklr's market capitalization stands at approximately $1.98 billion. However, investors should be aware that the company's stock has experienced a significant decline over the last six months, with a 39.69% drop in price total return. This performance may influence investor sentiment and could be a factor to consider when assessing the company's stock for potential investment.
For those seeking a deeper dive into Sprinklr's financials and market performance, InvestingPro offers additional insights. There are 10 more InvestingPro Tips available that delve into various aspects of the company's operations, valuation, and analyst expectations. These tips can be accessed by visiting the dedicated page for Sprinklr on InvestingPro: https://www.investing.com/pro/CXM.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.