Blackbaud (NASDAQ:BLKB) Shares Gap Up Following Strong Earnings

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)'s stock price gapped up before the market opened on Wednesday after the company announced better than expected quarterly earnings. 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.

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

Analysts Set New Price Targets

Several research firms have recently weighed in on BLKB. Stifel Nicolaus cut their price objective on Blackbaud from $75.00 to $65.00 and set a "hold" rating on the stock in a report on Thursday, May 1st. Wall Street Zen raised Blackbaud from a "hold" rating to a "buy" rating in a research report on Saturday. Three research analysts have rated the stock with a hold rating and two have given a buy rating to the stock. According to data from MarketBeat, the company has a consensus rating of "Hold" and an average target price of $78.67.

Insider Activity at Blackbaud

In other Blackbaud news, CFO Chad Anderson sold 5,500 shares of the business's stock in a transaction that occurred on Friday, May 16th. The stock was sold at an average price of $63.99, for a total transaction of $351,945.00. Following the transaction, the chief financial officer owned 35,976 shares of the company's stock, valued at $2,302,104.24. The trade was a 13.26% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, EVP Kevin P. Gregoire sold 8,000 shares of the business's stock in a transaction that occurred on Wednesday, July 30th. The stock was sold at an average price of $72.67, for a total value of $581,360.00. Following the transaction, the executive vice president directly owned 111,156 shares in the company, valued at $8,077,706.52. This trade represents a 6.71% decrease in their position. The disclosure for this sale can be found here. 1.97% of the stock is owned by insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the business. CWM LLC boosted its stake in shares of Blackbaud by 215.9% during the 2nd quarter. CWM LLC now owns 458 shares of the technology company's stock worth $29,000 after acquiring an additional 313 shares during the period. Versant Capital Management Inc boosted its stake in shares of Blackbaud by 127.4% during the 1st quarter. Versant Capital Management Inc now owns 523 shares of the technology company's stock worth $32,000 after acquiring an additional 293 shares during the period. Parallel Advisors LLC bought a new position in shares of Blackbaud during the 2nd quarter worth approximately $44,000. UMB Bank n.a. boosted its stake in shares of Blackbaud by 63.2% during the 1st quarter. UMB Bank n.a. now owns 692 shares of the technology company's stock worth $43,000 after acquiring an additional 268 shares during the period. Finally, Farther Finance Advisors LLC boosted its stake in Blackbaud by 2,168.3% in the 2nd quarter. Farther Finance Advisors LLC now owns 1,361 shares of the technology company's stock valued at $87,000 after purchasing an additional 1,301 shares during the period. 94.21% of the stock is currently owned by institutional investors.

Blackbaud Price Performance

The company has a 50 day moving average of $63.81 and a 200-day moving average of $65.84. The company has a current ratio of 0.84, a quick ratio of 0.84 and a debt-to-equity ratio of 12.92. The firm has a market capitalization of $3.17 billion, a P/E ratio of -11.29, a P/E/G ratio of 4.64 and a beta of 1.13.

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.