Blackbaud (NASDAQ:BLKB) Shares Gap Down - Should You Sell?

Key Points

• Blackbaud shares gapped down on Tuesday, opening at $31.47 after closing at $32.68 and last trading near $31.27, as the stock fell about 4.5% intraday.
• Analysts remain mixed on BLKB: the consensus rating is Hold with an average price target of $48.75, though recent target cuts and downgrades have pulled sentiment lower.
• Blackbaud’s latest earnings beat expectations, with EPS of $1.14 versus the $1.08 estimate and revenue of $281.14 million, but the company also carries notable leverage with a debt-to-equity ratio of 33.66.

Blackbaud, Inc. (NASDAQ:BLKB - Get Free Report)'s share price gapped down before the market opened on Tuesday . The stock had previously closed at $32.68, but opened at $31.47. Blackbaud shares last traded at $31.27, with a volume of 91,813 shares traded.

Wall Street Analysts Forecast Growth

Several analysts recently weighed in on BLKB shares. Robert W. Baird upgraded Blackbaud from a "neutral" rating to an "outperform" rating and dropped their price objective for the stock from $60.00 to $50.00 in a research report on Thursday, April 30th. Stifel Nicolaus decreased their target price on Blackbaud from $45.00 to $30.00 and set a "hold" rating on the stock in a research report on Friday, July 10th. Zacks Research downgraded Blackbaud from a "strong-buy" rating to a "hold" rating in a research note on Monday, April 13th. Finally, Weiss Ratings raised shares of Blackbaud from a "sell (d)" rating to a "sell (d+)" rating in a report on Wednesday, July 8th. One research analyst has rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, Blackbaud currently has an average rating of "Hold" and a consensus price target of $48.75.

Blackbaud Stock Down 4.5%

The company has a current ratio of 0.74, a quick ratio of 0.74 and a debt-to-equity ratio of 33.66. The company has a market capitalization of $1.43 billion, a P/E ratio of 10.56, a PEG ratio of 1.15 and a beta of 1.01. The stock has a 50 day moving average price of $29.54 and a 200 day moving average price of $40.59.

Blackbaud (NASDAQ:BLKB - Get Free Report) last issued its quarterly earnings data on Wednesday, April 29th. The technology company reported $1.14 earnings per share for the quarter, topping analysts' consensus estimates of $1.08 by $0.06. The business had revenue of $281.14 million for the quarter, compared to analyst estimates of $279.81 million. Blackbaud had a return on equity of 176.76% and a net margin of 12.41%.Blackbaud's quarterly revenue was up 4.2% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.96 EPS. Blackbaud has set its FY 2026 guidance at 5.150-5.250 EPS. On average, research analysts anticipate that Blackbaud, Inc. will post 3.57 earnings per share for the current fiscal year.

Insider Buying and Selling at Blackbaud

In related news, CFO Chad Anderson sold 6,205 shares of the firm's stock in a transaction on Monday, June 1st. The stock was sold at an average price of $31.31, for a total transaction of $194,278.55. Following the completion of the transaction, the chief financial officer directly owned 62,869 shares of the company's stock, valued at $1,968,428.39. This trade represents a 8.98% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 2.01% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Blackbaud

A number of large investors have recently bought and sold shares of the stock. Altshuler Shaham Ltd acquired a new position in shares of Blackbaud during the first quarter valued at about $29,000. Parallel Advisors LLC grew its stake in shares of Blackbaud by 528.0% in the 1st quarter. Parallel Advisors LLC now owns 785 shares of the technology company's stock valued at $30,000 after buying an additional 660 shares during the period. Blue Trust Inc. increased its position in Blackbaud by 44.3% in the 1st quarter. Blue Trust Inc. now owns 867 shares of the technology company's stock valued at $33,000 after buying an additional 266 shares in the last quarter. Rothschild Investment LLC increased its position in Blackbaud by 589.0% in the 4th quarter. Rothschild Investment LLC now owns 565 shares of the technology company's stock valued at $36,000 after buying an additional 483 shares in the last quarter. Finally, Versant Capital Management Inc raised its stake in Blackbaud by 243.9% during the 2nd quarter. Versant Capital Management Inc now owns 1,286 shares of the technology company's stock worth $38,000 after buying an additional 912 shares during the period. 94.21% of the stock is currently owned by institutional investors and hedge funds.

About Blackbaud

Blackbaud, Inc is a leading provider of cloud software, services and data intelligence solutions designed specifically for the social good community. The company's main offerings include fundraising and relationship management platforms, financial management systems, grant and award management tools, and advanced analytics. Its flagship products—such as Raiser's Edge NXT, Blackbaud Financial Edge NXT and Blackbaud NetCommunity—help nonprofit organizations, educational institutions, healthcare providers and foundations streamline donor engagement, optimize financial operations and measure program impact.

Founded in 1981 and headquartered in Charleston, South Carolina, Blackbaud has grown from a small technology startup into a global specialist in nonprofit software.

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