Blackbaud (NASDAQ:BLKB) Rating Lowered to Sell at Zacks Investment Research

Blackbaud (NASDAQ:BLKBGet Rating) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued on Tuesday, Zacks.com reports. They presently have a $59.00 target price on the technology company’s stock. Zacks Investment Research‘s price objective points to a potential upside of 2.34% from the company’s current price.

According to Zacks, “Blackbaud’s performance is being driven by strength in recurring revenue and bookings growth led by rapid migration of enterprises to cloud amid pandemic-induced digitalization. Robust uptick in JustGiving, Raiser's Edge NXT and Financial Edge NXT is a tailwind. The expansion of product portfolio, frequent product launches and strategic collaborations bode well. The company expects top line performance to benefit from the recent acquisition of EVERFI. However, coronavirus-led macroeconomic weakness as well as sluggish demand across small- and medium-sized businesses are major headwinds. A leveraged balance sheet adds to the risk of investing in the company.  Blackbaud suspended dividend payouts to maintain near-term liquidity amid the COVID-19 crisis. Shares of the company have underperformed the industry in the year-to-date period.”

Other research analysts have also issued reports about the stock. Stifel Nicolaus lowered their target price on shares of Blackbaud from $85.00 to $70.00 and set a “hold” rating on the stock in a research report on Wednesday, February 23rd. Robert W. Baird lowered their target price on shares of Blackbaud from $85.00 to $70.00 in a research report on Thursday, February 24th. TheStreet lowered shares of Blackbaud from a “c” rating to a “d+” rating in a research report on Monday, February 28th. Finally, StockNews.com began coverage on shares of Blackbaud in a research report on Thursday, March 31st. They issued a “hold” rating on the stock. One investment analyst has rated the stock with a sell rating and three have issued a hold rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus target price of $66.33.

Blackbaud stock opened at $57.65 on Tuesday. The firm has a 50 day moving average price of $61.51 and a 200 day moving average price of $70.54. The company has a market capitalization of $3.00 billion, a PE ratio of 480.46 and a beta of 1.07. The company has a debt-to-equity ratio of 1.31, a quick ratio of 0.77 and a current ratio of 0.77. Blackbaud has a fifty-two week low of $53.81 and a fifty-two week high of $86.96.

Blackbaud (NASDAQ:BLKBGet Rating) last announced its quarterly earnings results on Tuesday, February 22nd. The technology company reported $0.24 earnings per share for the quarter, meeting analysts’ consensus estimates of $0.24. Blackbaud had a net margin of 0.61% and a return on equity of 10.60%. The firm had revenue of $247.90 million during the quarter, compared to analysts’ expectations of $241.84 million. During the same period in the previous year, the company earned $0.31 earnings per share. Blackbaud’s quarterly revenue was up 2.2% compared to the same quarter last year. As a group, equities research analysts forecast that Blackbaud will post 0.73 earnings per share for the current year.

In other news, SVP Jon W. Olson sold 4,580 shares of Blackbaud stock in a transaction that occurred on Monday, April 4th. The shares were sold at an average price of $60.26, for a total value of $275,990.80. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, CEO Michael P. Gianoni sold 8,659 shares of Blackbaud stock in a transaction that occurred on Tuesday, March 1st. The stock was sold at an average price of $61.71, for a total transaction of $534,346.89. The disclosure for this sale can be found here. Insiders sold a total of 16,239 shares of company stock valued at $999,518 over the last ninety days. Company insiders own 1.76% of the company’s stock.

Large investors have recently added to or reduced their stakes in the stock. AlphaCrest Capital Management LLC acquired a new position in Blackbaud during the 3rd quarter valued at $1,862,000. Two Sigma Investments LP increased its position in shares of Blackbaud by 30.4% during the 3rd quarter. Two Sigma Investments LP now owns 25,887 shares of the technology company’s stock worth $1,821,000 after purchasing an additional 6,039 shares in the last quarter. Strs Ohio increased its position in shares of Blackbaud by 116.7% during the 4th quarter. Strs Ohio now owns 2,600 shares of the technology company’s stock worth $205,000 after purchasing an additional 1,400 shares in the last quarter. American Century Companies Inc. increased its position in shares of Blackbaud by 14.3% during the 3rd quarter. American Century Companies Inc. now owns 5,223 shares of the technology company’s stock worth $367,000 after purchasing an additional 655 shares in the last quarter. Finally, Squarepoint Ops LLC increased its position in Blackbaud by 359.8% in the 3rd quarter. Squarepoint Ops LLC now owns 14,478 shares of the technology company’s stock valued at $1,019,000 after acquiring an additional 11,329 shares in the last quarter. Hedge funds and other institutional investors own 98.60% of the company’s stock.

About Blackbaud (Get Rating)

Blackbaud, Inc provides cloud software solutions to higher education institutions, KÂ-12 schools, healthcare organizations, faith communities, arts and cultural organizations, foundations, companies, and individual change agents in the United States and internationally. The company offers fundraising and relationship management solutions, such as Blackbaud Raiser's Edge NXT and Blackbaud CRM, Blackbaud eTapestry, Blackbaud TeamRaiser, JustGiving, and Blackbaud Guided Fundraising and Blackbaud Volunteer Network Fundraising; marketing and engagement solutions, including Blackbaud Luminate Online, Blackbaud Online Express, and Blackbaud School Website System; and financial management solutions comprising Blackbaud Financial Edge NXT, Blackbaud Tuition Management, and Blackbaud Financial Aid Management.

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