IBJNews

ExactTarget's stock price falls as insiders unload shares

Back to TopCommentsE-mailPrintBookmark and Share

ExactTarget Inc.'s stock price fell more than 7 percent Tuesday after company insiders shed more than 7.5 million shares of the Indianapolis-based marketing software firm.

The stock dropped to as low as $21.80 per share during the day before closing at $23.07, a drop of 7.2 percent from Monday's closing price.

The selloff follows the expiration Monday of ExactTarget’s lock-up agreement, a ban that prohibit insiders from selling their shares for a period of time after a company goes public.

Indianapolis-based ExactTarget went public in March at $19 a share, raising $161.5 million. The stock soared to a first-day close of $25.11 and hit a low of $18.53 in early June.

Palo Alto, Calif.-based Technology Crossover Ventures and Boston-based Battery Ventures, two of ExactTarget’s largest stockholders, are responsible for shedding almost three-quarters of the shares unloaded as part of a follow-on offering announced Sept. 11.

Technology Crossover Ventures sold nearly 3.3 million shares, taking its ownership stake in the company down to 17 percent, while Battery Ventures sold more than 2.2 million shares, leaving it with an 11.4-percent ownership stake.

Foster City, Calif.-based Scale Venture Partners unloaded about 900,500 shares, leaving it  with a 4.7-percent stake.

ExactTarget CEO Scott Dorsey sold 300,000 shares, taking his ownership stake from 3.6 percent to 3.1 percent.

The 7.5 million shares unloaded by insiders will be priced in a follow-on public offering at $22.50 each, the company announced Sept. 11.

So-called lock-up agreements ensure insiders and early investors don’t dump their holdings during an IPO. The restriction on stock sales typically lasts up to 180 days. Some experts say tech stocks are especially vulnerable to lock-up expirations because many issue a smaller percentage of their stock during the IPO than other companies. Many tech stocks also have higher valuations than non-tech stocks relative to cash flow and other key measures, critics complain.

“The price of our common stock could decline if there are substantial sales of our common stock” by insiders, ExactTarget said in its registration. “We have a small public float relative to the total number of shares of our common stock that are issued and outstanding.”

Trading of Exact Target’s stock was heavy Tuesday morning, as nearly 2 million shares changed hands. By comparison, volume on Monday reached only 226,300 shares.

 
 

ADVERTISEMENT

  • Remember:
    ExactTarget CEO Scott Dorsey sold 300,000 shares, taking his ownership stake from 3.6 percent to 3.1 percent.

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. Really, taking someone managing the regulation of Alcohol and making himthe President of an IVY Tech regional campus. Does he have an education background?

  2. Jan, great rant. Now how about you review the report and offer rebuttal of the memo. This might be more conducive to civil discourse than a wild rant with no supporting facts. Perhaps some links to support your assertions would be helpful

  3. I've lived in Indianapolis my whole and been to the track 3 times. Once for a Brickyard, once last year on a practice day for Indy 500, and once when I was a high school student to pick up trash for community service. In the past 11 years, I would say while the IMS is a great venue, there are some upgrades that would show that it's changing with the times, just like the city is. First, take out the bleachers and put in individual seats. Kentucky Motor Speedway has individual seats and they look cool. Fix up the restrooms. Add wi-fi. Like others have suggested, look at bringing in concerts leading up to events. Don't just stick with the country music genre. Pop music would work well too I believe. This will attract more young celebrities to the Indy 500 like the kind that go to the Kentucky Derby. Work with Indy Go to increase the frequency of the bus route to the track during high end events. That way people have other options than worrying about where to park and paying for parking. Then after all of this, look at getting night lights. I think the aforementioned strategies are more necessary than night racing at this point in time.

  4. Talking about congestion ANYWHERE in Indianapolis is absolutely laughable. Sure you may have to wait in 5 minutes of traffic to travel down BR avenue during *peak* times. But that is absolutely nothing compared to actual big cities. Indy is way too suburban to have actual congestion problems. So please, never bring up "congestion" as an excuse to avoid development in Indianapolis. If anything, we could use a little more.

  5. Oh wait. Never mind.

ADVERTISEMENT