BlackLine $BL is Engaged Capital LLC's 3rd Largest Position

Key Points

• Engaged Capital increased its BlackLine stake by 26.2% in the first quarter to 1.37 million shares, making BlackLine the fund’s third-largest holding and representing 16.7% of its portfolio.
• Institutional investors own 95.13% of BlackLine, while two directors sold shares under disclosed transactions. Recent analyst sentiment remains cautious, with a consensus “Hold” rating and an average price target of $41.83.
• BlackLine reported quarterly EPS of $0.56, beating estimates of $0.45, while revenue rose 9.7% year over year to $183.16 million. The stock recently traded near $30.66, well below its 52-week high of $59.57.

Engaged Capital LLC increased its position in shares of BlackLine (NASDAQ:BL - Free Report) by 26.2% in the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund owned 1,367,619 shares of the technology company's stock after purchasing an additional 284,000 shares during the period. BlackLine accounts for about 16.7% of Engaged Capital LLC's holdings, making the stock its 3rd biggest holding. Engaged Capital LLC owned approximately 2.33% of BlackLine worth $50,602,000 at the end of the most recent reporting period.

Other institutional investors also recently bought and sold shares of the company. Measured Wealth Private Client Group LLC acquired a new position in BlackLine in the 3rd quarter valued at about $25,000. Kestra Advisory Services LLC purchased a new stake in shares of BlackLine in the 4th quarter valued at approximately $28,000. Bayforest Capital Ltd acquired a new stake in shares of BlackLine during the 4th quarter worth approximately $40,000. Leonteq Securities AG increased its holdings in shares of BlackLine by 1,019.6% during the 1st quarter. Leonteq Securities AG now owns 1,086 shares of the technology company's stock worth $40,000 after buying an additional 989 shares during the last quarter. Finally, Global Retirement Partners LLC raised its position in shares of BlackLine by 306.7% during the 4th quarter. Global Retirement Partners LLC now owns 1,220 shares of the technology company's stock valued at $67,000 after buying an additional 920 shares during the period. 95.13% of the stock is owned by hedge funds and other institutional investors.

Insiders Place Their Bets

In other BlackLine news, Director Gregory Hughes sold 1,637 shares of the company's stock in a transaction on Thursday, May 21st. The stock was sold at an average price of $30.25, for a total transaction of $49,519.25. Following the transaction, the director directly owned 7,755 shares in the company, valued at $234,588.75. This represents a 17.43% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Mika Yamamoto sold 3,000 shares of the firm's stock in a transaction on Friday, June 5th. The stock was sold at an average price of $28.48, for a total value of $85,440.00. Following the transaction, the director owned 16,692 shares of the company's stock, valued at approximately $475,388.16. This represents a 15.23% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 9.10% of the stock is owned by corporate insiders.

Analyst Upgrades and Downgrades

BL has been the topic of a number of recent analyst reports. Citigroup decreased their price objective on BlackLine from $60.00 to $53.00 and set a "buy" rating on the stock in a report on Thursday, May 7th. Truist Financial cut their target price on BlackLine from $50.00 to $32.00 and set a "hold" rating for the company in a research note on Thursday, May 7th. Piper Sandler lifted their target price on BlackLine from $35.00 to $37.00 and gave the company a "neutral" rating in a research report on Wednesday, May 6th. Morgan Stanley reaffirmed an "equal weight" rating and issued a $33.00 price target (down from $50.00) on shares of BlackLine in a research note on Tuesday, July 21st. Finally, DA Davidson set a $30.00 price target on BlackLine in a report on Thursday, July 9th. Five research analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus price target of $41.83.

BlackLine Price Performance

BlackLine stock opened at $30.66 on Tuesday. The company's 50 day simple moving average is $28.67 and its 200-day simple moving average is $35.14. The company has a debt-to-equity ratio of 2.18, a quick ratio of 1.70 and a current ratio of 1.70. BlackLine has a 1 year low of $24.70 and a 1 year high of $59.57. The company has a market capitalization of $1.80 billion, a price-to-earnings ratio of 71.30 and a beta of 0.66.

BlackLine (NASDAQ:BL - Get Free Report) last posted its quarterly earnings data on Tuesday, May 5th. The technology company reported $0.56 earnings per share for the quarter, topping analysts' consensus estimates of $0.45 by $0.11. The firm had revenue of $183.16 million during the quarter, compared to analysts' expectations of $181.00 million. BlackLine had a net margin of 3.71% and a return on equity of 18.86%. The firm's quarterly revenue was up 9.7% on a year-over-year basis. During the same quarter last year, the company posted $0.49 EPS. BlackLine has set its FY 2026 guidance at 2.420-2.530 EPS and its Q2 2026 guidance at 0.570-0.590 EPS. As a group, equities research analysts expect that BlackLine will post 1.1 earnings per share for the current year.

BlackLine Profile

BlackLine, Inc is a leading provider of cloud-based software solutions designed to automate and modernize the finance and accounting function. The company's flagship offering, the BlackLine Finance Controls and Automation Platform, enables organizations to streamline critical processes such as account reconciliations, journal entry management, intercompany accounting, and transaction matching. By delivering a centralized, real-time view of financial data, BlackLine helps companies improve operational efficiency, enhance compliance and strengthen internal controls.

Key products and services within the BlackLine platform include Account Reconciliation, Task Management, Transaction Matching, Journal Entry, and Intercompany Hub.

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