Proofpoint (PFPT) Lifted to “Hold” at Zacks Investment Research
Zacks Investment Research upgraded shares of Proofpoint (NASDAQ:PFPT) from a sell rating to a hold rating in a report issued on Tuesday morning.
According to Zacks, “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 like Domain Discover and acquisitions with the likes of Cloudmark and Weblife.io 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, 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.”
A number of other research analysts also recently issued reports on the company. Evercore ISI reaffirmed a buy rating and set a $105.00 price target on shares of Proofpoint in a report on Wednesday, November 22nd. UBS Group started coverage on Proofpoint in a report on Tuesday, October 31st. They set a market perform rating on the stock. Robert W. Baird reaffirmed a hold rating and set a $100.00 price target on shares of Proofpoint in a report on Tuesday, November 7th. Wedbush reaffirmed an outperform rating and set a $108.00 price target on shares of Proofpoint in a report on Wednesday, January 3rd. Finally, Piper Jaffray Companies reaffirmed a buy rating and set a $112.00 price target on shares of Proofpoint in a report on Friday, November 24th. One research analyst has rated the stock with a sell rating, six have issued a hold rating, twenty-one have given a buy rating and one has given a strong buy rating to the company’s stock. The company currently has a consensus rating of Buy and a consensus target price of $108.29.
Proofpoint (NASDAQ:PFPT) last announced its quarterly earnings results on Tuesday, February 6th. The software maker reported $0.29 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.21 by $0.08. The firm had revenue of $145.40 million for the quarter, compared to the consensus estimate of $139.61 million. Proofpoint had a negative return on equity of 54.09% and a negative net margin of 16.37%. The company’s quarterly revenue was up 36.1% on a year-over-year basis. During the same period in the prior year, the company posted $0.18 earnings per share. analysts predict that Proofpoint will post -0.91 EPS for the current year.
In other Proofpoint news, EVP Bhagwat Swaroop sold 900 shares of the company’s stock in a transaction dated Wednesday, February 14th. The stock was sold at an average price of $98.86, for a total value of $88,974.00. Following the completion of the sale, the executive vice president now owns 4,077 shares in the company, valued at $403,052.22. The sale was disclosed in a document filed with the SEC, which is accessible through this link. Also, EVP Tracey Newell sold 8,187 shares of the company’s stock in a transaction dated Tuesday, February 20th. The stock was sold at an average price of $106.35, for a total value of $870,687.45. Following the completion of the sale, the executive vice president now owns 24,723 shares of the company’s stock, valued at approximately $2,629,291.05. The disclosure for this sale can be found here. In the last 90 days, insiders sold 187,303 shares of company stock valued at $17,637,911. Company insiders own 5.96% of the company’s stock.
A number of institutional investors and hedge funds have recently modified their holdings of PFPT. Exane Derivatives increased its position in Proofpoint by 901.8% in the fourth quarter. Exane Derivatives now owns 1,713 shares of the software maker’s stock worth $152,000 after buying an additional 1,542 shares in the last quarter. Dynamic Technology Lab Private Ltd purchased a new stake in Proofpoint in the second quarter worth about $215,000. Sigma Planning Corp purchased a new stake in Proofpoint in the fourth quarter worth about $238,000. Raymond James Financial Services Advisors Inc. purchased a new stake in Proofpoint in the second quarter worth about $253,000. Finally, GSA Capital Partners LLP purchased a new stake in Proofpoint in the third quarter worth about $317,000.
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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