In This Article:
While Blackbaud, Inc. (NASDAQ:BLKB) might not have the largest market cap around , it received a lot of attention from a substantial price movement on the NASDAQGS over the last few months, increasing to US$80.79 at one point, and dropping to the lows of US$61.90. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Blackbaud's current trading price of US$62.05 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Blackbaud’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
Is Blackbaud Still Cheap?
Good news, investors! Blackbaud is still a bargain right now. Our valuation model shows that the intrinsic value for the stock is $86.22, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. Although, there may be another chance to buy again in the future. This is because Blackbaud’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company's shares will likely fall by more than the rest of the market, providing a prime buying opportunity.
View our latest analysis for Blackbaud
What does the future of Blackbaud look like?
Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. Though in the case of Blackbaud, it is expected to deliver a relatively unexciting top-line growth of 6.7% in the next few years, which doesn’t help build up its investment thesis. Growth doesn’t appear to be a main reason for a buy decision for the company, at least in the near term.
What This Means For You
Are you a shareholder? Even though growth is relatively muted, since BLKB is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.
Are you a potential investor? If you’ve been keeping an eye on BLKB for a while, now might be the time to make a leap. Its future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy BLKB. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed investment decision.