HashiCorp CTO Dadgar Armon sells over $1.8 million in company stock

SAN FRANCISCO – HashiCorp, Inc. (NASDAQ:) reported that its Chief Technology Officer, Dadgar Armon, sold a significant portion of his company stock, totaling over $1.8 million. The transactions, which took place on September 23 and 24, involved the sale of 53,563 shares of Class A Common Stock at prices ranging from $33.8039 to $33.8109.

On September 23, Armon sold 35,904 shares at an average price of $33.8039, followed by a sale of 17,659 shares the next day at an average price of $33.8109. The total value of the shares sold over the two days reached approximately $1,810,761. These sales were conducted under a Rule 10b5-1 trading plan, which Armon had adopted on September 7, 2023.

In addition to the sales, the SEC filing revealed that Armon also acquired the same number of Class A shares through the conversion of Class B Common Stock on September 23. However, these transactions were reported at a price of $0, indicating they were likely tied to the exercise of options or similar equity grants.

Following the reported transactions, Armon’s direct holdings in Class A shares were reduced to 27,275. Indirectly, through trusts and entities he controls, Armon holds an additional 282,617 shares and 90,440 shares, respectively. The SEC filings also disclosed that Armon holds derivative securities in the form of Class B Common Stock, which is convertible into Class A shares, amounting to over 3.4 million shares.

The reported sales and acquisitions provide insights into the trading activities of one of HashiCorp’s top executives. Investors often monitor such filings to gauge the confidence of company insiders in the firm’s financial health and future prospects.

HashiCorp, known for its suite of open-source tools and enterprise solutions for cloud infrastructure automation, has not provided any official comment on the transactions at the time of this report.

In other recent news, HashiCorp Inc. reported solid financial results for its second fiscal quarter, surpassing expectations. The cloud infrastructure company’s revenue climbed to $165.1 million, marking a 15.3% growth rate and exceeding estimates from BTIG and consensus. The firm’s operating income for the quarter also turned positive at $0.7 million, a substantial improvement over the anticipated -$15.4 million.

In addition to the strong financial performance, HashiCorp achieved non-GAAP operating income in the black for the first time. The company’s earnings per share (EPS) of $0.08 outperformed both BTIG’s and consensus estimates. However, HashiCorp did not provide updated guidance due to its impending acquisition by IBM (NYSE:).

This acquisition is anticipated to conclude by the end of 2024. Analyst firms including BTIG, Citi, and KeyBanc have maintained neutral ratings on HashiCorp following these developments. Citi has resumed coverage with a new price target of $35.00 after reviewing the company’s financial results.

KeyBanc has also maintained its Sector Weight rating amidst the ongoing acquisition process. These are recent developments that investors should keep an eye on as they could significantly impact HashiCorp’s strategic direction and operational landscape.

InvestingPro Insights

As HashiCorp’s CTO, Dadgar Armon, adjusts his stake in the company, investors might look to the broader financial health and market performance of HashiCorp for context. According to InvestingPro data, HashiCorp currently holds a market capitalization of $6.86 billion. Despite a challenging P/E ratio currently standing at -45.3, the company’s gross profit margins remain impressive at 82.08% for the last twelve months as of Q2 2023. This high margin reflects the company’s strong ability to manage its cost of goods sold and suggests a robust pricing power for its products and services.

InvestingPro Tips highlight that HashiCorp holds more cash than debt on its balance sheet, which can provide financial flexibility and resilience against market downturns. Additionally, the company has been experiencing a significant price uptick, with a 25.62% return over the last six months and a year-to-date price total return of 43.1% as of the same period. This trend indicates strong investor confidence and market momentum for HashiCorp’s stock.

For investors seeking further insights, there are additional tips available on InvestingPro. For instance, analysts have revised their earnings upwards for the upcoming period, and HashiCorp is expected to be profitable this year. These forward-looking statements could be a sign of HashiCorp’s potential for growth and a positive outlook from market analysts. In total, there are 11 InvestingPro Tips available that could provide a more comprehensive analysis for those considering HashiCorp as an investment opportunity.

It is also noteworthy that the company is trading near its 52-week high, at 99.32% of this threshold. This level of market performance, coupled with the fact that HashiCorp does not currently pay a dividend, may influence investment strategies, particularly for those looking for capital gains over income returns.

Investors interested in exploring these metrics further can find a detailed analysis, including additional InvestingPro Tips, at

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