Is Sprinklr Stock a Buy or Sell After Its CEO Dumped Nearly 70,000 Shares in the Company?

On Dec. 16, 2025, Rory P. Read, President & CEO of Sprinklr (NYSE:CXM), executed an open-market sale of 68,673 shares, with a transaction value of approximately $534,275.94, as disclosed in the SEC Form 4 filing.

Transaction summary

Transaction value based on SEC Form 4 weighted average purchase price ($7.78); post-transaction value based on Dec. 16, 2025 market close ($7.84).

Key questions

• What proportion of Rory Read’s direct stake did this transaction represent?
  This sale amounted to 3.6% of direct holdings, reducing direct ownership from 1,879,286 to 1,810,613 shares.
• How does this sale compare in size to recent insider sales at Sprinklr?
  The transaction was smaller than the median sell-only transaction of 163,443 shares by Rory Read over the past year, in part due to a lower remaining share base after previous sales.
• Were there any indirect or derivative components to this transaction?
  No; all shares sold were held directly, with no indirect entity involvement or derivative (option-related) activity reported.
• What is the market context for this sale?
  As of Dec. 16, 2025, Sprinklr shares closed at $7.85, with a trailing one-year total return of -13.85%, and Rory Read retains a post-sale direct holding valued at approximately ~$14,213,312.05.

Company overview

* 1-year performance is calculated using Dec. 16, 2025 as the reference date.

Company snapshot

• Sprinklr offers a unified customer experience management platform, including Modern Research, Modern Care, Modern Marketing and Advertising, and Social Engagement and Sales solutions.
• It generates revenue primarily through enterprise cloud software subscriptions and related professional services.
• The company serves large global brands and enterprises seeking to manage and optimize customer interactions across digital and traditional channels.

Sprinklr is a technology company specializing in enterprise cloud software for unified customer experience management at scale. The company leverages advanced analytics and integrations to help organizations analyze, engage, and act on customer data across diverse digital channels.

With a global enterprise client base and a comprehensive platform, Sprinklr aims to provide a competitive edge through actionable insights and seamless customer engagement.

What this transaction means for investors

Sprinklr CEO Rory Read's disposition of company stock is not a cause for alarm. After the sale, he still held about 1.8 million shares. The stock is up from its 52-week low of $6.75 reached in April, so perhaps Mr. Read wanted to lock in some gains.

Despite the market hype around artificial intelligence and Sprinklr positioning itself as the "definitive, AI-native platform for Unified Customer Experience Management (Unified-CXM)," the company's share price has steadily declined over the last few years.

Even so, its sales are growing. In its fiscal third quarter, ended Oct. 31, revenue reached $219.1 million, a 9% year-over-year increase. The company expects that trend to continue in fiscal Q4 with sales projected to range between $216.5 million and $217.5 million, up from the prior year's $202.5 million.

Sprinklr's business performance has been solid, but not spectacular for a company touting AI capabilities, and that could have caused its stock's lackluster performance. There's nothing in either Mr. Read's stock sale or Sprinklr's operations that suggest it's time to sell shares if you're a shareholder.

In terms of whether to buy, Sprinklr looks like a solid company, but hanging its hat on AI does not seem to have done much for its stock price these days. Its P/E ratio is substantially lower than at the start of 2025, but not at a low point. So it's up to each investor whether you feel strongly enough to invest at this time.

Glossary

Open-market sale: The sale of securities on a public exchange at prevailing market prices, not through private transactions.
Insider sale: When a company executive or major shareholder sells shares in their own company.
Form 4: A required SEC filing disclosing insider transactions in a company's securities.
Direct holdings: Shares owned personally by an individual, not through trusts or other entities.
Indirect entities: Organizations or accounts, such as trusts or family funds, through which an individual may hold shares.
Derivative transactions: Trades involving financial contracts like options, whose value is based on an underlying asset.
Weighted average purchase price: The average price paid per share, adjusted for the number of shares bought at each price.
Trailing one-year total return: The investment's total gain or loss, including price changes and dividends, over the past 12 months.
TTM: The 12-month period ending with the most recent quarterly report.

Robert Izquierdo has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.