Proofpoint (PFPT) Raised to Buy at Zacks Investment Research
Proofpoint (NASDAQ:PFPT) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research report issued to clients and investors on Wednesday. The firm currently has a $102.00 price objective on the software maker’s stock. Zacks Investment Research‘s target price would suggest a potential upside of 11.26% from the company’s previous close.
According to Zacks, “The cybersecurity company, Proofpoint has outperformed the industry to which it belongs to on a year-to-date basis. The company’s sustained focus on launching new products, acquisitions with the likes of FireLayers and partnerships have helped it to register approximately 35% revenue growth continuously for the last few quarters. The company also maintains a high renewal rate of more than 90% which signifies that it has a better product portfolio and stickier customers. A high renewal rate indicates more predictable revenues and a lesser selling cost. Nonetheless, the company’s somewhat pessimistic outlook for the next year makes us slightly cautious about its long-term growth prospect. Moreover, since it continues to invest in sales and marketing, we anticipate this to remain a drag on the company’s bottom line in the near term. Intensifying competition and an uncertain macroeconomic environment add to its woes.”
Several other research firms have also recently weighed in on PFPT. Deutsche Bank upped their target price on Proofpoint from $95.00 to $100.00 and gave the stock a “buy” rating in a research note on Friday, September 8th. BTIG Research restated a “buy” rating and set a $110.00 target price on shares of Proofpoint in a research note on Monday, September 11th. Stifel Nicolaus set a $100.00 target price on Proofpoint and gave the stock a “buy” rating in a research note on Monday, October 16th. Robert W. Baird restated a “hold” rating and set a $95.00 target price on shares of Proofpoint in a research note on Friday, September 8th. Finally, KeyCorp restated a “hold” rating on shares of Proofpoint in a research note on Tuesday, September 19th. One research analyst has rated the stock with a sell rating, five have given a hold rating and twenty-three have issued a buy rating to the company’s stock. Proofpoint currently has a consensus rating of “Buy” and a consensus price target of $102.39.
Proofpoint (NASDAQ:PFPT) last issued its quarterly earnings results on Thursday, October 19th. The software maker reported $0.25 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $0.18 by $0.07. The business had revenue of $134.30 million for the quarter, compared to the consensus estimate of $131.48 million. Proofpoint had a negative return on equity of 158.19% and a negative net margin of 20.19%. The firm’s quarterly revenue was up 34.6% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.19 earnings per share. sell-side analysts predict that Proofpoint will post -0.88 EPS for the current fiscal year.
In other Proofpoint news, EVP David Knight sold 3,000 shares of the stock in a transaction dated Tuesday, October 3rd. The stock was sold at an average price of $88.99, for a total transaction of $266,970.00. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Chairman Eric Hahn sold 5,000 shares of the stock in a transaction dated Wednesday, December 6th. The stock was sold at an average price of $83.71, for a total value of $418,550.00. Following the sale, the chairman now owns 38,201 shares of the company’s stock, valued at $3,197,805.71. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 168,549 shares of company stock valued at $15,141,422. 5.96% of the stock is owned by corporate insiders.
A number of institutional investors have recently modified their holdings of PFPT. D.A. Davidson & CO. grew its stake in shares of Proofpoint by 57.9% in the 2nd quarter. D.A. Davidson & CO. now owns 1,175 shares of the software maker’s stock valued at $102,000 after buying an additional 431 shares during the period. Dynamic Technology Lab Private Ltd acquired a new position in Proofpoint during the 2nd quarter valued at about $215,000. Bluestein R H & Co. acquired a new position in Proofpoint during the 2nd quarter valued at about $217,000. Gotham Asset Management LLC acquired a new position in Proofpoint during the 2nd quarter valued at about $222,000. Finally, Migdal Insurance & Financial Holdings Ltd. boosted its stake in Proofpoint by 17.7% during the 2nd quarter. Migdal Insurance & Financial Holdings Ltd. now owns 2,724 shares of the software maker’s stock valued at $235,000 after purchasing an additional 409 shares during the last quarter.
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Proofpoint, Inc is a security-as-a-service provider that enables large and mid-sized organizations to defend, protect, archive and govern their sensitive data. The Company’s security-as-a-service platform consists of an integrated suite of on-demand data protection solutions, including threat protection, incident response, regulatory compliance, archiving, governance, eDiscovery and secure communication.
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