SAN FRANCISCO—Armon Dadgar, Chief Technology Officer of HashiCorp, Inc. (NASDAQ:HCP), recently sold 35,904 shares of the company's Class A Common Stock, according to a regulatory filing with the Securities and Exchange Commission. The shares were sold at a weighted average price of $33.82, totaling approximately $1.21 million.
The transaction was conducted as part of a prearranged 10b5-1 trading plan, which Dadgar adopted on September 7, 2023. Following this sale, Dadgar holds 1,520,000 shares indirectly through the Armon Dadgar 2020 Charitable Trust, among other entities.
In addition to the sale, Dadgar converted 35,904 shares of Class B Common Stock into Class A Common Stock, with no financial gain reported from the conversion. The Class B shares are convertible into Class A shares at the holder's option and have no expiration date.
This activity is part of Dadgar's ongoing management of his holdings in HashiCorp, a company specializing in computer programming services.
In other recent news, HashiCorp has reported an impressive Q2 performance with revenue reaching $165.1 million, a 15.3% increase, surpassing estimates from both BTIG and consensus. The company's operating income also marked a significant improvement, registering at $0.7 million, a shift from the anticipated -$15.4 million. This is the first instance of HashiCorp achieving non-GAAP operating income in the black.
HashiCorp's earnings per share (EPS) of $0.08 also outperformed both BTIG's and consensus estimates. Amidst these financial results, BTIG maintained a Neutral rating on HashiCorp, while Citi resumed coverage with a neutral rating and KeyBanc maintained its Sector Weight rating.
Simultaneously, HashiCorp is in the process of being acquired by IBM (NYSE:IBM), a transaction expected to conclude by the end of 2024. The acquisition has been approved by HashiCorp shareholders and is currently pending regulatory approvals. This development has influenced the revised revenue and profitability estimates from both BTIG and Citi. These are the latest developments in HashiCorp's trajectory.
InvestingPro Insights
Recent data from InvestingPro sheds additional light on HashiCorp's financial position and market performance, providing context to Armon Dadgar's recent stock transactions.
Despite not being profitable over the last twelve months, HashiCorp boasts impressive gross profit margins, with InvestingPro data showing a gross profit margin of 82.08% for the last twelve months as of Q2 2025. This strong margin suggests efficient cost management in the company's core operations.
The company's stock has shown remarkable performance, with a one-year price total return of 65.31% as of the latest data. This aligns with an InvestingPro Tip indicating that HashiCorp has delivered a high return over the last year. The stock is currently trading near its 52-week high, with the price at 98.88% of its 52-week peak.
Interestingly, while the company has seen significant stock appreciation, it maintains a strong liquidity position. An InvestingPro Tip notes that HashiCorp holds more cash than debt on its balance sheet, which could provide flexibility for future growth initiatives or weathering potential market uncertainties.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for HashiCorp, providing a deeper understanding of the company's financial health and market position.
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