Subramanian Sundar, Executive Vice President and General Manager, Infrastructure Management at Progress Software Corp (NASDAQ:), reported a sale of company shares. According to a recent SEC filing, Sundar sold 649 shares of Progress Software (ETR:) common stock on November 1, 2024 at a price of $64.02 per share, totaling $41,548. After this transaction, Sundar directly owns 18,469 shares. The sale was made under a Rule 10b5-1 trading plan that Sundar adopted on August 9, 2023.
In other recent news, Progress Software Corporation has made significant progress with a successful acquisition, impressive financial performance and product improvements. The company recently completed the acquisition of ShareFile from Cloud Software Group, expanding its AI portfolio and expected to add more than $240 million in annual revenue. This takeover is in line with that of Progress Total (EPA:) Growth Strategy and is expected to grow its customer base by more than 86,000.
In terms of financial performance, Progress exceeded expectations for the third quarter with revenue up 2% year over year, to $179 million, and 17% growth in earnings per share to $1.26. The ShareFile acquisition is expected to add $18-20 million to fourth-quarter revenue. Analyst firms DA Davidson, Oppenheimer and Citi have shown increased confidence in Progress’s financial health, with DA Davidson raising its price target to $75, Oppenheimer to $80 and Citi to $65.
On the product side, Progress launched an enhanced Flowmon platform, designed to speed up IP searches by up to ten times, allowing network administrators to quickly identify network activities associated with specific IP addresses. This development is part of a series of major performance and scalability improvements to the Flowmon AI-powered network detection and response and network visibility offering. These are the recent developments in the activities of Progress Software Corporation.
InvestingPro Insights
With Progress Software Corp (NASDAQ:PRGS) facing insider selling activity, it is worth examining the company’s current financial position and market performance. According to data from InvestingPro, Progress Software has a market cap of $2.78 billion, reflecting its substantial presence in the software industry.
The company’s shares have shown strong momentum, with a total price return of 27.41% over the past six months and a return of 15.87% over the past three months. This positive trend aligns with an InvestingPro tip indicating the stock is trading near its 52-week high, currently at 95.39% off that peak.
Progress Software’s financial health appears robust, with a gross profit margin of 86.28% over the trailing twelve months as of Q3 2024. This impressive figure supports another InvestingPro tip highlighting the company’s “impressive gross profit margins.” Moreover, the company’s revenue for the same period is $715.42 million, with a growth rate of 6.05%.
However, investors should note that Progress Software is trading at a relatively high price-to-earnings ratio of 34.07, which could indicate that the stock is priced above its earnings. This observation is reinforced by a Tip from InvestingPro stating that the company “trades at a high profit margin.”
For those interested in a more in-depth analysis, InvestingPro offers 13 additional tips for Progress Software, which provide a deeper insight into the company’s financial position and market prospects.
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