FireEye (FEYE) Rating Increased to Hold at Zacks Investment Research
Zacks Investment Research upgraded shares of FireEye (NASDAQ:FEYE) from a sell rating to a hold rating in a research report released on Tuesday morning.
According to Zacks, “FireEye is a specialized provider of a security platform against cyber-attacks to enterprises and governments. We consider that a shift from product-based to subscription-based business model will have a negative impact on FireEye’s near-term results, however, that will lead to more stable revenues in the long-run. Also, there is an advantage to the shorter-length contracts as they generally generate higher margins compared with three-year contracts. Going ahead, a healthy security market, strong product line-up, deal wins and investment plans should boost results in the long run. Notably, estimates have been stable ahead of the company's q4 earnings release. Nonetheless, negative operating cash flow remains a major headwind for FireEye, which may hinder the execution of its growth plans. Intensifying competition and an uncertain macroeconomic environment add to its woes.”
A number of other research firms have also weighed in on FEYE. Cowen reiterated a hold rating and issued a $15.00 price objective on shares of FireEye in a research note on Thursday, October 12th. Northland Securities set a $22.00 price objective on shares of FireEye and gave the stock a buy rating in a research note on Thursday, October 12th. BMO Capital Markets reiterated a hold rating and issued a $17.00 price objective on shares of FireEye in a research note on Thursday, October 5th. Oppenheimer reiterated a buy rating and issued a $23.00 price objective on shares of FireEye in a research note on Monday, September 18th. Finally, Standpoint Research downgraded shares of FireEye from a buy rating to a hold rating and set a $18.00 price target on the stock. in a report on Monday, September 18th. They noted that the move was a valuation call. Two equities research analysts have rated the stock with a sell rating, sixteen have issued a hold rating, twelve have assigned a buy rating and one has issued a strong buy rating to the company. FireEye has an average rating of Hold and an average price target of $17.22.
FireEye (NASDAQ:FEYE) last released its quarterly earnings data on Wednesday, November 1st. The information security company reported ($0.04) earnings per share for the quarter, topping the Zacks’ consensus estimate of ($0.07) by $0.03. The firm had revenue of $189.60 million for the quarter, compared to analyst estimates of $186.41 million. FireEye had a negative net margin of 39.29% and a negative return on equity of 23.71%. The business’s quarterly revenue was up 1.7% compared to the same quarter last year. During the same quarter in the prior year, the business earned ($0.18) earnings per share. equities research analysts forecast that FireEye will post -1.07 EPS for the current fiscal year.
In other FireEye news, Director Ronald E. F. Codd sold 6,767 shares of the stock in a transaction on Thursday, November 16th. The shares were sold at an average price of $13.57, for a total transaction of $91,828.19. Following the transaction, the director now directly owns 7,099 shares of the company’s stock, valued at $96,333.43. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Company insiders own 2.40% of the company’s stock.
A number of institutional investors and hedge funds have recently bought and sold shares of the business. Vanguard Group Inc. lifted its holdings in FireEye by 7.9% during the second quarter. Vanguard Group Inc. now owns 12,578,361 shares of the information security company’s stock valued at $191,317,000 after purchasing an additional 917,967 shares in the last quarter. Balyasny Asset Management LLC lifted its holdings in FireEye by 213.3% during the second quarter. Balyasny Asset Management LLC now owns 2,902,297 shares of the information security company’s stock valued at $44,144,000 after purchasing an additional 1,975,924 shares in the last quarter. ETF Managers Group LLC purchased a new position in FireEye during the second quarter valued at $43,372,000. Neuberger Berman Group LLC raised its position in shares of FireEye by 9.5% in the third quarter. Neuberger Berman Group LLC now owns 2,726,371 shares of the information security company’s stock valued at $45,721,000 after buying an additional 237,575 shares during the last quarter. Finally, Fisher Asset Management LLC raised its position in shares of FireEye by 6.4% in the third quarter. Fisher Asset Management LLC now owns 2,187,245 shares of the information security company’s stock valued at $36,680,000 after buying an additional 130,634 shares during the last quarter. 68.32% of the stock is currently owned by institutional investors and hedge funds.
FireEye, Inc provides intelligence-based cybersecurity solutions that allow organizations to prepare for, prevent, respond to and remediate cyber-attacks. The Company offers various products, such as Threat Detection and Prevention Solutions, which include network security products (NX and Multi-vector Virtual Execution (MVX) Compute Node Series), e-mail security products (EX Series and e-mail threat prevention cloud (ETP), endpoint security products (HX Series) and content security products (FX Series); security management and orchestration products, which include Central Management System and FireEye Security Orchestrator, and forensics and investigation products, which include Threat Analytics Platform (TAP), Malware Analysis (AX Series) and Enterprise Forensics (PX Series and IA Series).
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