Slack (NYSE:WORK) Shares Gap Down Following Insider Selling

Slack (NYSE:WORK) gapped down prior to trading on Wednesday after an insider sold shares in the company. The stock had previously closed at $20.01, but opened at $21.18. Slack shares last traded at $21.30, with a volume of 4,402,474 shares changing hands.

Specifically, CEO Stewart Butterfield sold 2,500 shares of Slack stock in a transaction dated Monday, August 26th. The shares were sold at an average price of $30.72, for a total transaction of $76,800.00. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Cal Henderson sold 1,500 shares of Slack stock in a transaction dated Monday, August 26th. The stock was sold at an average price of $30.65, for a total transaction of $45,975.00. The disclosure for this sale can be found here. Insiders sold 265,067 shares of company stock valued at $6,052,984 in the last quarter.

A number of equities analysts have issued reports on the stock. Credit Suisse Group restated a “neutral” rating and set a $35.00 target price (down previously from $40.00) on shares of Slack in a research report on Thursday, September 5th. Citigroup cut their target price on shares of Slack from $39.00 to $27.00 and set a “neutral” rating for the company in a research report on Friday, September 6th. Piper Jaffray Companies assumed coverage on shares of Slack in a research report on Monday, October 28th. They set an “overweight” rating and a $30.00 target price for the company. Mizuho lifted their target price on shares of Slack from $20.00 to $24.00 and gave the stock a “neutral” rating in a research report on Thursday, November 7th. Finally, Barclays restated a “buy” rating and set a $31.00 target price on shares of Slack in a research report on Sunday, November 3rd. One equities research analyst has rated the stock with a sell rating, seven have assigned a hold rating and eleven have given a buy rating to the company. The stock presently has an average rating of “Buy” and a consensus price target of $32.63.

The firm has a fifty day moving average price of $22.53.

Slack (NYSE:WORK) last issued its quarterly earnings results on Wednesday, September 4th. The company reported ($0.98) EPS for the quarter, topping analysts’ consensus estimates of ($1.03) by $0.05. The firm had revenue of $144.97 million for the quarter, compared to analysts’ expectations of $140.60 million. As a group, equities analysts predict that Slack will post -0.43 earnings per share for the current fiscal year.

Hedge funds and other institutional investors have recently modified their holdings of the company. Kessler Investment Group LLC purchased a new stake in shares of Slack during the third quarter worth about $342,000. Gainplan LLC purchased a new stake in shares of Slack during the third quarter worth about $712,000. Cetera Investment Advisers purchased a new stake in shares of Slack during the third quarter worth about $200,000. Atika Capital Management LLC purchased a new stake in shares of Slack during the second quarter worth about $4,837,000. Finally, Wedbush Securities Inc. grew its holdings in shares of Slack by 49.6% during the third quarter. Wedbush Securities Inc. now owns 8,450 shares of the company’s stock worth $201,000 after buying an additional 2,800 shares in the last quarter. Institutional investors and hedge funds own 20.01% of the company’s stock.

About Slack (NYSE:WORK)

Slack Technologies, Inc operates Slack, a business technology software platform in the United States and internationally. Its platform brings together people, applications, and data, as well as sells its offering under a software-as-a-service model. The company was formerly known as Tiny Speck, Inc and changed its name to Slack Technologies, Inc in 2014.

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