HashiCorp, Inc.'s (NYSE:NASDAQ:HCP) Chief Technology Officer, Armon Dadgar, recently engaged in significant stock transactions, according to a new SEC filing. On October 2, 2024, Dadgar sold a total of 35,904 shares of Class A Common Stock at prices ranging from $33.81 to $33.87, culminating in a total sale value of approximately $1.2 million.
The sale was conducted under a prearranged 10b5-1 trading plan, which allows company insiders to sell shares at predetermined times to avoid accusations of insider trading. The plan had been adopted on September 7, 2023, ensuring that the sale was compliant with SEC regulations and not based on any undisclosed material information.
Investors tracking insider activity may note that the CTO's sale represented a significant divestment from his holdings in the company. Following the transaction, Dadgar's direct and indirect ownership in HashiCorp decreased, yet he still maintains a substantial stake through various trusts and entities.
The filing also revealed that Dadgar holds additional shares in trusts and entities, including the Armon Dadgar 2020 Charitable Trust, the Armon Memaran-Dadgar Living Trust, and Black Swan III, LLC, which he controls. These holdings indicate a continued vested interest in the company's performance and future.
HashiCorp, known for its cloud infrastructure automation software, has seen its stock fluctuate in the market, and transactions of this magnitude can often attract the attention of investors seeking to understand insider perspectives on the company's value.
While the reasons behind Dadgar's sale are not disclosed, the move provides investors with insight into the actions of a key executive at a leading technology firm. As always, investors are encouraged to consider the context of such transactions within their broader investment strategy.
For those interested in the company's stock activity, HashiCorp trades under the ticker symbol NYSE:HCP.
In other recent news, HashiCorp Inc. reported significant financial results for its second fiscal quarter, surpassing analyst estimates. The company's revenue reached $165.1 million, marking a growth rate of 15.3%. HashiCorp's operating income was positive at $0.7 million, a notable improvement from the anticipated -$15.4 million. The company's earnings per share (EPS) of $0.08 also outperformed both BTIG's and consensus estimates.
Despite these strong results, HashiCorp did not provide updated guidance due to its impending acquisition by IBM (NYSE:IBM). This transaction is expected to conclude by the end of 2024. BTIG maintained a neutral rating on HashiCorp, adjusting its fiscal year 2025 revenue estimate for the company to $661.6 million.
In addition to BTIG, Citi also resumed coverage on HashiCorp with a neutral rating, and KeyBanc maintained its Sector Weight rating on HashiCorp. These ratings and adjustments follow recent developments, including HashiCorp's impressive financial performance and the ongoing acquisition process by IBM.
InvestingPro Insights
To complement the recent insider transaction by HashiCorp's CTO, Armon Dadgar, InvestingPro data offers additional context for investors evaluating the company's financial position and market performance.
HashiCorp's market capitalization stands at $6.87 billion, reflecting its significant presence in the cloud infrastructure automation sector. The company's revenue for the last twelve months as of Q2 2025 was $627.62 million, with a notable revenue growth of 15.72% over the same period. This growth trajectory aligns with the company's position in the rapidly evolving cloud technology market.
One of the InvestingPro Tips highlights that HashiCorp "holds more cash than debt on its balance sheet," which suggests a strong liquidity position. This financial stability could provide the company with flexibility for future investments or to weather potential market uncertainties.
Another relevant InvestingPro Tip indicates that HashiCorp has "impressive gross profit margins." Indeed, the data shows a gross profit margin of 82.08% for the last twelve months as of Q2 2025, underscoring the company's efficiency in delivering its software solutions.
It's worth noting that while the company is not currently profitable, with an operating income margin of -32.99%, analysts predict that HashiCorp will be profitable this year, according to another InvestingPro Tip. This projection may be of particular interest to investors considering the recent insider sale and the company's future prospects.
The stock has seen a significant price uptick over the last six months, with a total return of 32.76%. As of the latest data, HashiCorp is trading near its 52-week high, with the current price at 99.44% of that peak. This performance could be a factor in the timing of the insider's decision to sell shares.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for HashiCorp, providing a deeper dive into the company's financial health and market position.
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