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 research note issued to investors on Tuesday.
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.”
Other equities analysts have also recently issued research reports about the company. Deutsche Bank restated a buy rating and set a $114.00 price target on shares of Proofpoint in a report on Tuesday, January 30th. BidaskClub upgraded Proofpoint from a hold rating to a buy rating in a report on Friday, December 22nd. Piper Jaffray Companies restated a buy rating and set a $112.00 price target on shares of Proofpoint in a report on Friday, November 24th. Evercore ISI restated a buy rating and set a $105.00 price target on shares of Proofpoint in a report on Wednesday, November 22nd. Finally, Monness Crespi & Hardt raised their price target on Proofpoint from $110.00 to $115.00 and gave the company a buy rating in a report on Wednesday, February 7th. One analyst has rated the stock with a sell rating, six have given a hold rating, twenty-one have assigned a buy rating and one has issued a strong buy rating to the stock. The company has an average rating of Buy and a consensus price target of $108.29.
Proofpoint (NASDAQ:PFPT) last released its quarterly earnings results on Tuesday, February 6th. The software maker reported $0.29 earnings per share for the quarter, beating the consensus estimate of $0.21 by $0.08. The business had revenue of $145.40 million during the quarter, compared to analysts’ expectations of $139.61 million. Proofpoint had a negative return on equity of 54.09% and a negative net margin of 16.37%. The firm’s revenue for the quarter was up 36.1% compared to the same quarter last year. During the same quarter last year, the business posted $0.18 EPS. analysts forecast that Proofpoint will post -0.91 EPS for the current fiscal year.
In related news, EVP Bhagwat Swaroop sold 900 shares of the firm’s stock in a transaction that occurred on Wednesday, February 14th. The stock was sold at an average price of $98.86, for a total transaction of $88,974.00. Following the completion of the sale, the executive vice president now directly owns 4,077 shares of the company’s stock, valued at approximately $403,052.22. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Gary Steele sold 40,000 shares of the firm’s stock in a transaction that occurred on Tuesday, December 5th. The stock was sold at an average price of $86.28, for a total value of $3,451,200.00. Following the sale, the chief executive officer now directly owns 88,551 shares of the company’s stock, valued at $7,640,180.28. The disclosure for this sale can be found here. Insiders sold a total of 187,303 shares of company stock valued at $17,637,911 over the last ninety days. Corporate insiders own 5.96% of the company’s stock.
Several hedge funds have recently modified their holdings of PFPT. Dimensional Fund Advisors LP lifted its stake in shares of Proofpoint by 433.0% during the 2nd quarter. Dimensional Fund Advisors LP now owns 29,440 shares of the software maker’s stock worth $2,556,000 after acquiring an additional 23,917 shares during the last quarter. The Manufacturers Life Insurance Company lifted its stake in shares of Proofpoint by 4.9% during the 2nd quarter. The Manufacturers Life Insurance Company now owns 32,960 shares of the software maker’s stock worth $2,862,000 after acquiring an additional 1,554 shares during the last quarter. Raymond James Financial Services Advisors Inc. bought a new stake in shares of Proofpoint during the 2nd quarter worth approximately $253,000. Public Employees Retirement System of Ohio lifted its stake in shares of Proofpoint by 46.1% during the 2nd quarter. Public Employees Retirement System of Ohio now owns 20,142 shares of the software maker’s stock worth $1,749,000 after acquiring an additional 6,357 shares during the last quarter. Finally, Dynamic Technology Lab Private Ltd bought a new stake in shares of Proofpoint during the 2nd quarter worth approximately $215,000.
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Proofpoint Company Profile
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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