IBJNews

Lock-up expiration looming for ExactTarget

Back to TopCommentsE-mailPrintBookmark and Share

Shares of Angie's List and Facebook were battered earlier this month immediately after the expiration of their lock-up agreements, the bans that prohibit insiders from selling their shares right after a company goes public. That’s something tech firm ExactTarget would like to avoid on Sept. 17, when its lock-up agreement expires.

On Tuesday, the Indianapolis-based marketing software firm filed a registration statement for a proposed follow-on offering by stockholders that would pave the way for them to sell once the lock-up expires. Pricing details were not disclosed.

ExactTarget went public last March at $19 a share, raising $161.5 million. The stock soared to a first-day close of $25.11. Lately, its shares have traded at just under $21. Among the largest shareholders of ExactTarget is Palo Alto, Calif.-based Technology Crossover Ventures, with 22 percent, or 14.5 million shares.

Post-IPO tech stocks have run into a buzzsaw lately after their lock-ups expired. Shares of Indianapolis-based consumer review website operator Angie’s List are down nearly 30 percent, trading at around $9.50 in recent days, compared to just prior to the lock-up’s end. On the other hand, Angie’s competitor Yelp in trading Wednesday morning rose about 20 percent after it lifted a ban on stock sales by its large investors. The San Francisco company had a 67-percent earnings jump in the second quarter.

ExactTarget may shake off the lock-up expiration, as well. The company, which counts Microsoft and Xerox among its clients, earlier this month beat analysts’ second quarter loss estimates and grew sales by 42 percent. Its loss fell to $2.6 million, or 4 cents a share, vs. an 8-cent loss forecast by analysts. ExactTarget upped its 2012 revenue estimate to a range of $277 million and $280 million from a prior forecast of $270 million to $273 million.

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 states 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."

ADVERTISEMENT

  • WELL
    Today, YELP is up, even with "Lock-ups Released" while Angie's List lumbers downward. I am happy with the 20% kick upward for YELP, and look forward to Angie reaching $5.00.

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. Those of you yelling to deport them all should at least understand that the law allows minors (if not from a bordering country) to argue for asylum. If you don't like the law, you can petition Congress to change it. But you can't blindly scream that they all need to be deported now, unless you want your government to just decide which laws to follow and which to ignore.

  2. 52,000 children in a country with a population of nearly 300 million is decimal dust or a nano-amount of people that can be easily absorbed. In addition, the flow of children from central American countries is decreasing. BL - the country can easily absorb these children while at the same time trying to discourage more children from coming. There is tension between economic concerns and the values of Judeo-Christian believers. But, I cannot see how the economic argument can stand up against the values of the believers, which most people in this country espouse (but perhaps don't practice). The Governor, who is an alleged religious man and a family man, seems to favor the economic argument; I do not see how his position is tenable under the circumstances. Yes, this is a complicated situation made worse by politics but....these are helpless children without parents and many want to simply "ship" them back to who knows where. Where are our Hoosier hearts? I thought the term Hoosier was synonymous with hospitable.

  3. Illegal aliens. Not undocumented workers (too young anyway). I note that this article never uses the word illegal and calls them immigrants. Being married to a naturalized citizen, these people are criminals and need to be deported as soon as humanly possible. The border needs to be closed NOW.

  4. Send them back NOW.

  5. deport now

ADVERTISEMENT