Smartsheet Inc. Insider Trading and Growth Prospects

Smartsheet Inc. (NYSE:SMAR), a leader in cloud-based work management, reported a significant transaction by President and CEO Mark Mader. According to a recent SEC filing, Mader sold 20,000 shares of Class A Common Stock at $51.78 per share, totaling over $1 million.

The sale occurred on September 19, 2024, under a Rule 10b5-1 trading plan, adopted on March 27, 2024. These plans allow company insiders to preset trading arrangements for stock sales, providing a buffer against accusations of insider trading.

Despite the sale, Mader still owns a significant number of shares, amounting to 588,762 shares of Smartsheet’s Class A Common Stock. In addition, he has indirect holdings through trusts for his children, including 51,250 shares in the T49C Trust and 40,000 shares in the L38 Trust, for which he disclaims beneficial ownership. These trusts are managed by trustee Douglas Porter.

Insider trading activities are closely monitored by investors for insights into company performance and prospects. Smartsheet’s stock and Mader’s transactions are likely to attract market attention.

Recent Corporate Developments

In other developments, Smartsheet reported a 17% year-over-year increase in both Q2 revenue ($276.4 million) and annualized recurring revenue (ARR) of $1.093 billion. A new pricing model has boosted customer engagement, with a 50% increase in customers holding an ARR over $1 million numbers, totaling 77.

Smartsheet anticipates fiscal year 2025 revenue between $1.116 billion and $1.121 billion, expecting free cash flow to rise to $240 million. Chief Operating Officer Stephen Branstetter plans to resign, transitioning to an advisory role until November 18, 2024, as the company adopts a dual President structure focused on Go-to-Market and Product & Innovation.

Moreover, Smartsheet is reportedly in discussions for acquisition with a private equity group, as noted by KeyBanc Capital Markets, which suggests a fair value of around $50 per share.

InvestingPro Insights

InvestingPro data reveals that Smartsheet has a market capitalization of $7.14 billion and a strong revenue growth of 20.16% over the last twelve months as of Q2 2025. Its gross profit margin stands at 81.61%, indicating strong profitability despite recent losses.

InvestingPro also highlights that Smartsheet holds more cash than debt, reflecting financial stability. Analysts have upgraded earnings forecasts, anticipating profitability this year. The stock trades near its 52-week high, reflecting a solid return over the last three months.

For investors, these insights suggest that despite recent insider sales, Smartsheet maintains a positive trajectory with strong financial fundamentals and growth potential. For additional analysis and forecasts, more InvestingPro Tips are available for informed investment decisions.

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