What Happened?
Shares of customer experience software provider Sprinklr (NYSE: CXM) jumped 3% in the morning session after JMP Securities reiterated its "Market Outperform" rating and a $17.00 price target on the customer experience management software provider. The investment firm's continued confidence comes ahead of a virtual Q&A session with Sprinklr's CEO, Rory Read, scheduled for Monday. JMP Securities highlighted the company's strong fundamentals, including a robust 71% gross margin and consistent profitability over the last twelve months.
After the initial pop the shares cooled down to $8.66, up 1.5% from previous close.
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What Is The Market Telling Us
Sprinklr’s shares are somewhat volatile and have had 13 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 3 days ago when the stock dropped 3.6% after news of significant stock sales by its Chief Financial Officer, Manish Sarin, came to light. According to filings with the Securities and Exchange Commission (SEC), Sarin sold a substantial number of shares over multiple transactions this week. While large stock sales by executives can sometimes worry investors about the company's future prospects, it's important to note that these trades were made under a pre-arranged Rule 10b5-1 trading plan. This type of plan allows company insiders to set up a schedule for selling stocks in advance, which can help to avoid any accusations of trading on non-public information.
Sprinklr is up 1.4% since the beginning of the year, but at $8.66 per share, it is still trading 12.2% below its 52-week high of $9.87 from July 2024. Investors who bought $1,000 worth of Sprinklr’s shares at the IPO in June 2021 would now be looking at an investment worth $492.14.
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