In a recent transaction, insiders at Jamf (NASDAQ:JAMF) Holding Corp. (NASDAQ:JAMF), a company specializing in prepackaged software services, have sold a significant number of shares. The sale involved a total of 8,956,522 shares at a price of $18.25 per share, amounting to over $163 million in value.
The shares were sold as part of an underwritten public offering according to the company's Registration Statement on Form S-3. This substantial transaction decreases the insiders' holdings but still leaves them with a notable amount of stock in the company. Following the sale, the insiders collectively own 45,358,762 shares.
The sellers include several entities affiliated with Vista Equity Partners, a private equity firm known for its investments in software, data, and technology-enabled businesses. The Vista Funds that participated in the sale are Vista Equity Partners Fund VI, L.P., Vista Equity Partners Fund VI-A, L.P., VEPF VI FAF, L.P., Vista Co-Invest Fund 2017-1, L.P., and VEPF VI Co-Invest 1, L.P.
Robert F. Smith, who is associated with the management of these funds, may be deemed to have beneficial ownership of the shares sold, although he disclaims beneficial ownership of any shares not held directly, except to the extent of his pecuniary interest.
Investors often closely watch insider transactions as they can provide insights into the executives' and major shareholders' perspectives on the company's current valuation and future prospects. The sale of shares by Jamf Holding Corp. insiders is a significant event that market participants may consider when evaluating their investment strategies concerning the company.
InvestingPro Insights
Amid the news of insider selling at Jamf Holding Corp. (NASDAQ:JAMF), investors might be examining the company's financial health and market performance for a fuller picture. According to InvestingPro data, Jamf Holding Corp. has a current market capitalization of $2.32 billion. Despite a challenging market environment, the company has shown resilience with a revenue growth of 15.47% over the last twelve months as of Q1 2024, indicating a steady demand for its software services.
The company's gross profit margin stands strong at 79.81%, reflecting its ability to maintain profitability in the face of operational costs. However, it is important to note that Jamf's P/E ratio is currently negative at -21.44, and further adjusted to -25.81 for the last twelve months as of Q1 2024, suggesting that the market expects future growth or a return to profitability to justify the current share price. Additionally, the stock's price is at 78.9% of its 52-week high, with a fair value estimated by analysts at $24.5, and InvestingPro's fair value slightly lower at $22.6.
An InvestingPro Tip to consider is the company's recent price performance, where the 1-week price total return shows a decline of -11.81%, which could be a point of analysis for investors trying to understand the short-term market sentiment following the insider selling event. For those interested in more in-depth analysis, there are additional InvestingPro Tips available that can provide further insights into Jamf's valuation and performance metrics.
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