Blackbaud (NASDAQ:BLKB) Shares Gap Up on Earnings Beat

Key Points

• Blackbaud, Inc. shares gapped up to $71.00 following a stronger than expected earnings report, reporting $1.21 earnings per share, exceeding analyst estimates of $1.05.
• Despite the earnings beat, four analysts now rate the stock as a "hold," with the target price recently decreased from $75.00 to $65.00 by Stifel Nicolaus.
• Insider sales were noted, with SVP Jon W. Olson and CFO Chad Anderson significantly reducing their holdings, reflecting a 31.01% and 13.26% decrease in ownership, respectively.

Blackbaud, Inc. (NASDAQ:BLKB - Get Free Report) gapped up prior to trading on Wednesday following a stronger than expected earnings report. The stock had previously closed at $64.50, but opened at $71.00. Blackbaud shares last traded at $70.97, with a volume of 109,774 shares trading hands.

The technology company reported $1.21 earnings per share for the quarter, beating analysts' consensus estimates of $1.05 by $0.16. Blackbaud had a negative net margin of 24.82% and a positive return on equity of 61.72%. The business had revenue of $281.38 million for the quarter, compared to the consensus estimate of $276.48 million. During the same quarter last year, the firm earned $1.08 EPS. Blackbaud's revenue for the quarter was down 2.1% on a year-over-year basis.

Analysts Set New Price Targets

Separately, Stifel Nicolaus lowered their target price on shares of Blackbaud from $75.00 to $65.00 and set a "hold" rating on the stock in a research note on Thursday, May 1st. Four analysts have rated the stock with a hold rating and one has issued a buy rating to the company. According to MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus target price of $78.67.

Insider Buying and Selling

In other Blackbaud news, CFO Chad Anderson sold 5,500 shares of the business's stock in a transaction dated Friday, May 16th. The shares were sold at an average price of $63.99, for a total value of $351,945.00. Following the transaction, the chief financial officer directly owned 35,976 shares in the company, valued at $2,302,104.24. The trade was a 13.26% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 1.97% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Blackbaud

A number of large investors have recently modified their holdings of the stock. Envestnet Asset Management Inc. lifted its position in shares of Blackbaud by 12.5% during the second quarter. Envestnet Asset Management Inc. now owns 147,359 shares of the technology company's stock worth $9,462,000 after purchasing an additional 16,326 shares in the last quarter. AlphaQuest LLC lifted its position in shares of Blackbaud by 401.1% during the second quarter. AlphaQuest LLC now owns 22,776 shares of the technology company's stock worth $1,462,000 after purchasing an additional 18,231 shares in the last quarter. R Squared Ltd acquired a new position in Blackbaud in the second quarter valued at approximately $250,000. Credit Industriel ET Commercial lifted its holdings in Blackbaud by 21.1% in the second quarter. Credit Industriel ET Commercial now owns 33,112 shares of the technology company's stock valued at $2,126,000 after buying an additional 5,780 shares during the period. Finally, Allspring Global Investments Holdings LLC lifted its holdings in Blackbaud by 1.8% in the second quarter. Allspring Global Investments Holdings LLC now owns 260,909 shares of the technology company's stock valued at $16,753,000 after buying an additional 4,602 shares during the period. 94.21% of the stock is currently owned by institutional investors and hedge funds.

Blackbaud Price Performance

The company's fifty day moving average is $63.72 and its two-hundred day moving average is $66.06. The firm has a market capitalization of $3.21 billion, a price-to-earnings ratio of -11.48, a price-to-earnings-growth ratio of 5.33 and a beta of 1.14. The company has a quick ratio of 0.73, a current ratio of 0.84 and a debt-to-equity ratio of 12.92.

Blackbaud Company Profile

Blackbaud, Inc provides cloud software solutions to nonprofits, foundations, education institutions, and healthcare organizations in the United States and internationally. The company offers fundraising and engagement solutions, such as Blackbaud Raiser's Edge NXT, Blackbaud CRM, Blackbaud eTapestry, Blackbaud Luminate Online, Blackbaud TeamRaiser, JustGiving, Blackbaud Fundraiser Performance Management, Blackbaud Guided Fundraising, and Blackbaud Altru; and financial management solutions comprising Blackbaud Financial Edge NXT, Blackbaud Tuition Management, and Blackbaud Financial Aid and Billing Management.