Bentley Systems, Incorporated (NASDAQ:BSY) has been making waves in the market recently with significant insider sales and a reduction in position by ETF Managers Group LLC. This news has created a buzz amongst investors and analysts alike as they try to decipher what it might mean for the future of this company.
According to its most recent filing with the Securities and Exchange Commission, ETF Managers Group LLC reduced its position in Bentley Systems by 15.9% during the fourth quarter of the year, selling off 2,880 shares and leaving them with a total of 15,227 shares. This is notable because ETFs are known for being long-term buy-and-hold investment vehicles, so this move suggests that they might have lost confidence in BSY’s future potential.
However, on May 9th, Bentley Systems proved the doubters wrong when they announced their quarterly earnings report. The company beat analyst consensus estimates of $0.18 EPS by posting an impressive $0.20 EPS instead. They also reported strong figures for revenue at $314.41 million compared to analyst expectations of $296.37 million.
This positive news was quickly overshadowed by insider sales actions made public on May 19th via filings to the SEC website. COO Nicholas Cumins sold off 28,000 shares at an average price of $46.01 per share totaling $1,288,280 while Director Barry J. Bentley sold over 50,830 shares at an average price of $42.51 valuing over $2 million out of his direct holdings- both actions hinting on negative outlook about their stock future prospects.
These moves are significant because insiders only sell their own company’s stock if they believe that it is overvalued or if they need quick liquidation for funds- either way triggering anxiety among shareholders who carefully monitored these movements since then.
In fact, corporate insiders have already sold almost 300,000 shares worth $13 million over the past three months. This action is worrisome for investors as insiders selling their stake in a company can be interpreted as a lack of confidence or belief that the stock has reached its peak.
It remains to be seen what these insider sales and the reduction in position by ETF Managers Group LLC will ultimately mean for Bentley Systems Incorporated. Analysts are left wondering if this high degree of insider trading activity imparts any telltale troubles, with one thing being certain- there is a pervading sense of bustiness around BSY stocks right now.
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Institutional Investors Show Increased Interest in Bentley Systems Following IPO and Share Surge
[stock_market_widget type=”chart” template=”basic” color=”#3946CE” assets=”BSY” range=”1mo” interval=”1d” axes=”true” cursor=”true” range_selector=”true” api=”yf”]Bentley Systems, Incorporated is a software development company that specializes in providing innovative digital tools for infrastructure design, construction and operations. The technology firm has seen its shares surge since their initial public offering (IPO) in September 2020, with institutional investors also showing increased interest in recent months.
According to reports,&Other institutional investors recently modified their holdings of the company. Commerce Bank grew its position in shares of Bentley Systems by 19.2% during the 4th quarter. Prudential PLC also acquired a new position in shares of Bentley Systems during this period, while Clearbridge Investments LLC and Handelsinvest Investeringsforvaltning acquired new positions valued at approximately $57.7 million and $10.9 million respectively.
As at 36.12%, more than a third of the stock is currently owned by institutional investors and hedge funds, proving that investor sentiment remains positive towards Bentley Systems.
Bentley’s share price opened at $53.29 on Monday, hitting a 1-year high of $54.24 previously attained on May 10th. While the firm’s market cap now sits impressively at around $15 billion, several executives have reportedly been selling off portions of their holdings recently.
COO Nicholas Cumins divested himself of 28,000 shares of BSY stock on two occasions within the space of two months for a total net worth exceeding $2 million, while director Barry J. Bentley sold more than half his stake – around 50,830 shares – for over $2.16 million.
These insider transactions clearly affected investor sentiments negatively as seen from an analysis made by Bloomberg indicating that insiders had sold about 295,698 shares totaling USD13 million within three months up until last Friday.
Bentley Systems remains confident though as it announced recently that it will pay out a dividend to shareholders on June 20th with an annual yield of roughly 0.38%.
Concerning ratings, a large number of equity analysts have upgraded their price targets on BSY recently. Royal Bank of Canada reportedly upped their target from $47 to $53, Oppenheimer raised its target from $48 to $50 while Mizuho set a new target at $51, up from the previous target of $45.
Griffin Securities went further and upgraded Bentley Systems’ shares from neutral to buy with a new target price of $58 in May 2021. Despite these price target hikes, Bloomberg reports that the stock has an average rating of “Moderate Buy” among analysts with a consensus target price of around $51.70.
The innovative technology firm’s impressive repertoire speaks volumes about how far it has come and continues to grow as it uses digital tools for infrastructure improvement and optimization globally.
