Cornerstone OnDemand lost 5.2 percent to $20.98 at the close in New York, the biggest drop since Oct. 31. Volume of 994,204 was almost four times the three-month daily average, according to data compiled by Bloomberg. The shares have risen 15 percent this year.
Several big trades in the past five weeks indicate some large investors continue to reduce stakes, as a handful did last year at lower prices. A block of 90,000 opened trading today at $20.95, 5.3 percent below the closing price on March 9.
“We have seen a rotation out of the company by a couple of shareholders” who owned the stock before the IPO, said Scott Berg, a Feltl & Co. analyst in Minneapolis who has a buy rating with a $25 price target.
An insider-sales window opened up this week for the first time since early December, Chief Executive Officer Adam Miller said in an interview. Earnings and an acquisition combined to create an unusually long black-out period, Miller said. He said he didn’t know details of the block trade.
“Insiders will only be allowed to sell this week before the next blackout period begins,” Miller said.
Cornerstone OnDemand went public a year ago, selling 10.5 million shares at $13 each. Management, directors and their affiliates own 40 percent of the stock, according to the 2011 annual report. The company had about 39.8 million shares outstanding at the end of the year, the report showed.
Cornerstone OnDemand provides software to help companies manage employee compensation, performance and training. As of Dec. 31, it had 805 clients.
Today’s trade followed blocks of 192,603 on Feb. 27 and 151,000 on Feb. 9.
According to regulatory filings for the period ended Dec. 31, Goldman Sachs Group Inc. (GS) reduced its stake to 22,550 shares from 1.48 million, while AllianceBernstein LP (AB) cut its holding by 798,370 to 1.01 million.
“They are one of the fastest-growing companies in the software space,” Berg said.
Analysts project sales will rise 51 percent this year to $113.7 million, the average of seven estimates compiled by Bloomberg. The annual loss will narrow to 27 cents, excluding items, from 52 cents in 2011. Nine analysts recommend buying the stock, and one says sell. Their average 12-month target price is $22.86.
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