Blackbaud CTO Kevin McDearis Balances Big PRSU Sale and New Share Purchase, Boosting Confidence in 2026 Performance Targets

Insider Activity Highlights a Strategic Shift at Blackbaud

Blackbaud’s recent filing reveals a complex pattern of trades by EVP & Chief Technology Officer Kevin McDearis. On February 23, 2026, McDearis bought 2,554 shares at no cost as part of a vesting event tied to performance‑restricted stock units (PRSUs) granted in February 2024. The same day he also sold a total of 15,462 shares under a Rule 10b‑5‑1 trading plan, generating proceeds of roughly $723 k. The net effect is a modest increase in his shareholdings—from 90,597 to 92,244 shares—while monetizing a sizeable portion of his PRSU‑derived equity.

What Does This Mean for Investors?

The dual action signals a confidence that the company’s performance objectives will be met. Vesting of PRSUs at the 2026 milestone suggests that Blackbaud is on track with its revenue‑growth and profitability targets. Meanwhile, the sizable sale under a pre‑established trading plan is typical for senior executives seeking liquidity or portfolio rebalancing; it does not necessarily indicate a bearish outlook. For investors, the move underscores that the technology leadership remains invested, but also actively managing risk. The current price of $47.21 sits roughly midway between Blackbaud’s 52‑week high and low, and the company’s P/E of 19.61 remains within the upper quartile for the software sector, pointing to a valuation that is still attractive for growth‑oriented investors.

Kevin McDearis: A Transactional Profile

McDearis has been one of the most active insiders in recent weeks. His trade history shows a pattern of large block purchases (e.g., 4,759 shares on 2026‑02‑18) interspersed with sizeable sales under a Rule 10b‑5‑1 plan. The bulk of his selling activity occurs shortly after PRSU vesting, suggesting a disciplined approach to realizing gains while maintaining a meaningful long‑term stake. Historically, his shares have hovered around 90–110 k holdings, a level that aligns with the company’s overall insider ownership of approximately 1.5 % of outstanding shares. This consistency indicates a belief in Blackbaud’s long‑term trajectory rather than a speculative play.

Broader Insider Context

Blackbaud’s senior management is active across the board: the CEO, COO, CFO, and other executives have all executed multiple block trades in the last month, often using Rule 10b‑5‑1 plans. The pattern reflects a broader trend of senior talent monetizing their equity while signaling confidence in the company’s performance. For the market, these moves reinforce that Blackbaud’s leadership is not in panic mode; instead, they are managing personal liquidity while remaining invested in the company’s future.

Outlook for the Company

With the company approaching its 52‑week low yet still maintaining a substantial market cap of $2.26 billion, Blackbaud sits in a defensive position within the information technology space. The recent sales by insiders have not dramatically altered the ownership landscape, and the PRSU vesting reinforces that management’s incentives remain aligned with shareholder value. For investors, the key metrics—P/E, P/B, and a stable earnings stream—remain solid. The short‑term price volatility appears driven more by broader market swings than by fundamental shifts, suggesting that a patient investor stance could yield upside as the company continues to execute on its strategic roadmap.