Qualys (NASDAQ:QLYS) Shares Gap Down After Analyst Downgrade

Qualys, Inc. (NASDAQ:QLYS) gapped down prior to trading on Tuesday after Jefferies Financial Group lowered their price target on the stock from $235.00 to $215.00. The stock had previously closed at $202.46, but opened at $182.50. Jefferies Financial Group currently has a hold rating on the stock. Qualys shares last traded at $180.85, with a volume of 244,591 shares.

Several other equities research analysts also recently weighed in on QLYS. Weiss Ratings raised shares of Qualys from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Thursday, October 8th. Zacks Research raised Qualys from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, August 11th. Wall Street Zen downgraded Qualys from a “buy” rating to a “hold” rating in a research note on Monday, November 2nd. Northland Securities set a $208.00 target price on Qualys in a research note on Wednesday, August 5th. Finally, JPMorgan Chase & Co. reduced their target price on Qualys from $241.00 to $215.00 and set a “neutral” rating for the company in a report on Tuesday. One equities research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, twelve have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, Qualys presently has a consensus rating of “Hold” and an average target price of $195.00.

Insider Activity at Qualys

In other Qualys news, CFO Joo Mi Kim sold 2,659 shares of the company’s stock in a transaction dated Monday, November 2nd. The stock was sold at an average price of $209.66, for a total value of $557,485.94. Following the completion of the sale, the chief financial officer owned 68,208 shares in the company, valued at $14,300,489.28. This represents a 3.75% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Bruce K. Posey sold 881 shares of the company’s stock in a transaction dated Tuesday, October 20th. The stock was sold at an average price of $189.52, for a total value of $166,967.12. Following the completion of the sale, the insider owned 57,807 shares of the company’s stock, valued at approximately $10,955,582.64. The trade was a 1.50% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 11,672 shares of company stock worth $2,192,747. Corporate insiders own 0.72% of the company’s stock.

Recent Qualys Headlines

Investors following QLYS have been watching these headlines:

• Positive Sentiment: Qualys beat third-quarter earnings and revenue expectations, citing strength in federal demand, channel growth and security-product adoption. It also raised its 2026 outlook: adjusted EPS guidance is $8.07–$8.14 versus the $7.44 consensus, and revenue guidance is $736.9 million–$738.9 million versus $735.5 million. Article: Qualys Q3 Earnings Beat on Federal Strength, 2026 Guidance Raised
• Neutral Sentiment: Analyst target changes were mixed. JPMorgan and Jefferies lowered their targets to $215 while retaining neutral/hold ratings; UBS, RBC, Wedbush, Piper Sandler and Baird raised targets, generally keeping neutral ratings. Article: Qualys Stock Price Target Lowered at JPMorgan Chase & Co.
• Negative Sentiment: Despite the earnings beat, analysts flagged a slowdown in fourth-quarter billings growth and margin concerns, contributing to pressure on the stock after results. Investors may also be questioning whether the shares’ valuation already reflects the improved outlook. Article: Qualys declines as analysts highlight Q4 billings growth slowdown

Institutional Investors Weigh In On Qualys

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Advisors Asset Management Inc. bought a new stake in shares of Qualys during the 3rd quarter valued at $699,000. Private Wealth Asset Management LLC bought a new position in Qualys in the 3rd quarter worth $219,000. USS Investment Management Ltd boosted its holdings in Qualys by 26.1% in the 3rd quarter. USS Investment Management Ltd now owns 5,800 shares of the software maker’s stock worth $1,086,000 after buying an additional 1,200 shares during the period. Private Advisor Group LLC purchased a new stake in Qualys in the 3rd quarter worth $439,000. Finally, Taylor Hoffman Capital Management LLC increased its stake in Qualys by 0.7% in the 3rd quarter. Taylor Hoffman Capital Management LLC now owns 42,514 shares of the software maker’s stock worth $7,959,000 after buying an additional 277 shares in the last quarter. 99.31% of the stock is owned by hedge funds and other institutional investors.

Qualys Trading Up 4.3%

The stock has a 50 day simple moving average of $190.96 and a 200-day simple moving average of $137.55. The firm has a market cap of $6.32 billion, a PE ratio of 30.40 and a beta of 0.54.

Qualys (NASDAQ:QLYS) last posted its quarterly earnings results on Monday, November 9th. The software maker reported $2.12 EPS for the quarter, topping analysts’ consensus estimates of $1.96 by $0.16. Qualys had a return on equity of 37.09% and a net margin of 29.59%. The company had revenue of $188.05 million for the quarter, compared to analysts’ expectations of $186.63 million. During the same period in the previous year, the firm earned $1.86 EPS. The firm’s revenue was up 10.7% compared to the same quarter last year. On average, equities research analysts expect that Qualys, Inc. will post 5.84 EPS for the current year.

About Qualys

Qualys, Inc. provides cloud-based security and compliance software to help organizations identify and manage cybersecurity risks. Its platform brings together information about an organization’s IT assets and security posture to support vulnerability management, threat detection, and compliance activities. Qualys offers products and services for vulnerability assessment and remediation, cloud security, endpoint protection, web application security, and policy compliance. Its solutions are designed to help customers monitor systems across cloud environments, on-premises infrastructure, and other connected assets.