SAN FRANCISCO – Armon Dadgar, Chief Technology Officer of HashiCorp, Inc. (NASDAQ:HCP), has sold a portion of his company stock, according to a recent filing with the Securities and Exchange Commission. The transaction involved the sale of 21,137 shares of Class A Common Stock at a weighted average price of $33.4757, totaling approximately $707,575.
The shares were sold on June 24, 2024, in multiple transactions at prices ranging from $33.29 to $33.52. This information comes from a footnote in the SEC filing, which also mentions that Dadgar had previously set up a Rule 10b5-1 trading plan on September 7, 2023. Such a plan allows company insiders to sell shares over a predetermined period of time, providing a defense against potential accusations of trading on inside information.
Following the sale, Dadgar still holds a significant number of shares directly and indirectly. The direct holdings amount to 23,234 shares of Class A Common Stock. Additionally, the SEC filing discloses that Dadgar has indirect holdings through various entities. The Armon Dadgar 2020 Charitable Trust holds 1,520,000 shares, the Armon Memaran-Dadgar Living Trust, for which Dadgar serves as trustee, holds 382,617 shares, and Black Swan III, LLC, which Dadgar controls, holds 90,440 shares.
The SEC form 4 filing provides a snapshot of Dadgar's transactions and holdings without any additional commentary on the motivations behind the sale or the potential impact on HashiCorp's stock performance. Investors monitoring insider activity may view such sales for a variety of reasons, including portfolio diversification or personal financial management.
HashiCorp, headquartered in San Francisco, is known for its cloud infrastructure automation software and is categorized under the Computer Programming Services industry. The company's stock is publicly traded on the NASDAQ stock exchange under the ticker symbol HCP.
The transactions were signed off by Paul Warenski, by the power of attorney, on June 26, 2024, as stated in the owner signature section of the SEC document.
In other recent news, HashiCorp has seen some significant developments. JMP Securities recently downgraded HashiCorp's stock from Market Outperform to Market Perform, following the announcement of the company's merger agreement with IBM (NYSE:IBM). HashiCorp is set to be acquired by IBM for $35 per share, valuing the company at an approximate enterprise value of $6.4 billion. The deal is expected to align HashiCorp's stock performance closely with the agreed acquisition price.
Meanwhile, HashiCorp has also announced a five-year strategic collaboration with Amazon (NASDAQ:AMZN) Web Services (AWS) to enhance infrastructure and security lifecycle management for customers. This partnership aims to build on past collaborations with a focus on co-developing solutions, customer programs, and sales initiatives.
In addition to these developments, analysts from Piper Sandler and Wolfe Research have offered their insights on HashiCorp's financial performance and future prospects. Piper Sandler has maintained a neutral stance on HashiCorp, highlighting the company's effective cost control measures and stable outlook. However, Wolfe Research has downgraded HashiCorp from an Outperform to Peer Perform rating, citing limited upside potential following the anticipated acquisition by IBM. These are among the recent developments for HashiCorp.
InvestingPro Insights
Amidst the recent insider trading activity at HashiCorp, Inc. (NASDAQ:HCP), the market is observing the company's financial health and growth prospects with keen interest. According to InvestingPro data, HashiCorp boasts a market capitalization of $6.72 billion, reflecting its significant presence in the cloud infrastructure automation software industry. The company's gross profit for the last twelve months as of Q1 2025 stands at an impressive $494.11 million, with a notable gross profit margin of 81.57%. These figures underscore the company's ability to maintain high profitability in its operations.
InvestingPro Tips highlight HashiCorp's strong liquidity position, with liquid assets surpassing short-term obligations, and an impressive gross profit margin, which is indicative of the company's efficient cost management and pricing strategies. Moreover, the company has been experiencing robust revenue growth, with an 18.08% increase in the last twelve months as of Q1 2025. This growth trajectory is complemented by a strong return over the last three months, with a 23.76% price total return, suggesting a positive market sentiment towards the company's performance.
While HashiCorp is currently trading at a high revenue valuation multiple and does not pay a dividend, investors are encouraged by analysts' predictions that the company will turn profitable this year. Such a development could potentially influence the stock's performance and investor perceptions. Additionally, with the stock trading near its 52-week high, at 98.36% of this threshold, it reflects investor confidence in the company's prospects.
For investors seeking more detailed analysis and additional insights, InvestingPro offers a comprehensive suite of tools and metrics. There are currently 9 additional InvestingPro Tips available for HashiCorp, which can be accessed by visiting https://www.investing.com/pro/HCP. To further enhance your investment research, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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