Andrew Braccia, a director at Squarespace, Inc. (NYSE:SQSP), has reported significant stock sales according to a recent SEC filing. On October 17, Braccia sold a total of 13,929,575 shares of Class A Common Stock at a price of $46.50 per share. The transactions, which were conducted through various entities such as Accel Growth Fund L.P. and Accel Growth Fund Strategic Partners L.P., amounted to a total of approximately $647.7 million.
These sales are part of a series of transactions related to a merger agreement involving Squarespace and Spaceship Purchaser, Inc. The shares were sold as part of a broader arrangement where certain shares were contributed to a limited partnership in exchange for equity interests in Topco, a company owning 100% of Spaceship Purchaser, Inc.
Braccia's involvement in the transactions was as a trustee or managing member of the various entities holding the shares. Notably, these sales have left Braccia with no remaining shares in Squarespace under the entities involved in the transactions.
In other recent news, Squarespace has seen several key developments. The company's Q1 2024 financial results exceeded expectations, with revenue and unlevered free cash flow surpassing guidance. This success was followed by the acquisition of Google (NASDAQ:GOOGL) Domains, driving subscription growth for the fourth consecutive quarter. Squarespace also sold its subsidiary, Tock LLC, to American Express (NYSE:AXP) Travel Related Services Company, Inc. for $400 million, marking a significant cash infusion.
In merger news, Squarespace's shareholders are set to receive $46.50 per share in cash from the global investment firm Permira, in an amended acquisition agreement valuing the transaction at approximately $7.2 billion. This revised offer is a 5.7% increase from the earlier agreed price.
The company has also seen varied analyst feedback. Barclays (LON:BARC) raised its price target on Squarespace to $47, maintaining an Equalweight rating. B.Riley downgraded Squarespace's stock from Buy to Neutral following the announcement of the all-cash acquisition proposal from Permira, while Mizuho upgraded Squarespace from Neutral to Buy, citing key growth drivers that are currently undervalued by the market. Piper Sandler maintained a neutral stance on Squarespace stock, evaluating the fairness of the offer price in light of Squarespace's projected value.
InvestingPro Insights
The recent large-scale stock sale by Andrew Braccia aligns with Squarespace's current market position and financial performance. According to InvestingPro data, Squarespace's market capitalization stands at $6.47 billion, reflecting its significant presence in the website building and hosting industry.
The company's revenue growth is noteworthy, with a 19.89% increase in the most recent quarter and an 18.76% growth over the last twelve months, reaching $1.11 billion. This robust growth trajectory supports the high valuation multiples observed, such as the elevated EBIT and EBITDA valuation multiples mentioned in the InvestingPro Tips.
Interestingly, while Squarespace is not currently profitable over the last twelve months, InvestingPro Tips indicate that net income is expected to grow this year, and analysts predict the company will be profitable this year. This positive outlook may have influenced the timing of Braccia's stock sale, potentially capitalizing on the stock's strong performance.
The stock's performance has been impressive, with a 55.54% total return over the past year and a 33.74% return in the last six months. This aligns with the InvestingPro Tip noting that the stock is trading near its 52-week high, currently at 99.75% of that peak.
For investors seeking more comprehensive insights, InvestingPro offers 13 additional tips for Squarespace, providing a deeper understanding of the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.