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 presently has a $103.00 target price on the software maker’s stock. Zacks Investment Research‘s price objective would indicate a potential upside of 11.71% from the stock’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.”
PFPT has been the topic of a number of other reports. Monness Crespi & Hardt started coverage on Proofpoint in a research note on Monday, October 16th. They set a “buy” rating and a $110.00 price target on the stock. Oppenheimer started coverage on Proofpoint in a research note on Wednesday, November 1st. They set a “market perform” rating on the stock. Needham & Company LLC reissued a “buy” rating and set a $115.00 price target on shares of Proofpoint in a research note on Monday, September 11th. Macquarie reissued an “outperform” rating and set a $103.00 price target on shares of Proofpoint in a research note on Tuesday, September 26th. Finally, BidaskClub raised Proofpoint from a “hold” rating to a “buy” rating in a research note on Friday, August 25th. One research analyst has rated the stock with a sell rating, six have assigned a hold rating and twenty-two have assigned a buy rating to the stock. The stock has a consensus rating of “Buy” and an average price target of $102.43.
Proofpoint (NASDAQ:PFPT) last announced its quarterly earnings results on Thursday, October 19th. The software maker reported $0.25 EPS for the quarter, beating the Zacks’ consensus estimate of $0.18 by $0.07. Proofpoint had a negative return on equity of 158.19% and a negative net margin of 20.19%. The firm had revenue of $134.30 million for the quarter, compared to analyst estimates of $131.48 million. During the same period last year, the firm posted $0.19 earnings per share. The business’s revenue for the quarter was up 34.6% on a year-over-year basis. equities research analysts predict that Proofpoint will post -0.88 EPS for the current year.
In other Proofpoint news, Chairman Eric Hahn sold 5,000 shares of Proofpoint stock in a transaction that occurred on Wednesday, October 4th. The stock was sold at an average price of $89.21, for a total value of $446,050.00. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, EVP David Knight sold 3,000 shares of Proofpoint stock in a transaction that occurred on Tuesday, October 3rd. The stock was sold at an average price of $88.99, for a total value of $266,970.00. The disclosure for this sale can be found here. Over the last quarter, insiders sold 168,549 shares of company stock valued at $15,141,422. 5.96% of the stock is currently owned by corporate insiders.
A number of hedge funds have recently modified their holdings of PFPT. D.A. Davidson & CO. increased its holdings in Proofpoint by 57.9% in the second quarter. D.A. Davidson & CO. now owns 1,175 shares of the software maker’s stock worth $102,000 after purchasing an additional 431 shares in the last quarter. Dynamic Technology Lab Private Ltd bought a new stake in shares of Proofpoint during the second quarter valued at approximately $215,000. Bluestein R H & Co. bought a new stake in shares of Proofpoint during the second quarter valued at approximately $217,000. Gotham Asset Management LLC bought a new stake in shares of Proofpoint during the second quarter valued at approximately $222,000. Finally, Marshall Wace LLP bought a new stake in shares of Proofpoint during the second quarter valued at approximately $225,000.
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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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