Check Point Software Technologies (NASDAQ:CHKP) Shares Gap Down – Time to Sell?

Check Point Software Technologies Ltd. (NASDAQ:CHKP) gapped down before the market opened on Thursday . The stock had previously closed at $139.67, but opened at $123.03. Check Point Software Technologies shares last traded at $123.7550, with a volume of 473,818 shares.

Trending Headlines about Check Point Software Technologies

Here are the key news stories impacting Check Point Software Technologies this week:

• Positive Sentiment: Check Point reported second-quarter adjusted earnings of $2.55 per share, exceeding the $2.45 consensus estimate and rising from $2.37 a year earlier. Revenue increased 1.3% year over year to $673.6 million, while subscription revenue and demand for AI-security products supported growth. Check Point Software Q2 Earnings Surpass Estimates
• Positive Sentiment: Susquehanna raised its price target from $140 to $150 and assigned a “positive” rating, implying substantial upside from recent levels. Susquehanna Check Point Analyst Action
• Positive Sentiment: The company launched an AI Network Firewall designed to give organizations visibility and control over AI use across employees, applications and AI agents. The product could strengthen Check Point’s competitive position as cybersecurity demand increasingly shifts toward AI protection. Check Point Launches AI Network Firewall
• Neutral Sentiment: Full-year 2026 guidance calls for adjusted EPS of $10.05-$10.85 and revenue of $2.8-$2.9 billion, broadly in line with current Wall Street expectations and offering limited near-term upside to estimates. Check Point Reports Second-Quarter Results
• Negative Sentiment: Third-quarter revenue guidance of $655 million-$685 million fell below the $696.5 million consensus estimate, raising concerns about near-term growth. Product sales and cash flow also faced pressure despite the earnings beat.
• Negative Sentiment: Analyst views remain mixed: Wells Fargo cut its target from $140 to $130 and maintained an “equal weight” rating, suggesting limited upside and reinforcing caution around Check Point’s modest revenue growth. Wells Fargo Lowers Check Point Price Target

Wall Street Analyst Weigh In

Several analysts recently commented on the company. Truist Financial set a $150.00 target price on Check Point Software Technologies in a research report on Thursday, April 30th. TD Cowen reissued a “buy” rating on shares of Check Point Software Technologies in a research note on Thursday. Wedbush lowered their price target on Check Point Software Technologies from $210.00 to $160.00 and set an “outperform” rating on the stock in a report on Friday, May 1st. Stifel Nicolaus raised their price target on Check Point Software Technologies from $120.00 to $130.00 and gave the company a “hold” rating in a report on Friday. Finally, UBS Group lifted their price objective on shares of Check Point Software Technologies from $130.00 to $135.00 and gave the company a “neutral” rating in a research note on Friday. Nine research analysts have rated the stock with a Buy rating, eighteen have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus target price of $149.48.

Check Point Software Technologies Trading Down 0.9%

The company has a quick ratio of 1.85, a current ratio of 1.85 and a debt-to-equity ratio of 0.70. The firm’s 50-day simple moving average is $131.11 and its 200 day simple moving average is $145.23. The stock has a market capitalization of $12.98 billion, a P/E ratio of 13.01, a PEG ratio of 3.79 and a beta of 0.49.

Check Point Software Technologies (NASDAQ:CHKP) last issued its quarterly earnings results on Thursday, July 30th. The technology company reported $2.55 earnings per share for the quarter, beating analysts’ consensus estimates of $2.45 by $0.10. Check Point Software Technologies had a net margin of 37.93% and a return on equity of 38.17%. The company had revenue of $673.60 million during the quarter, compared to the consensus estimate of $675.45 million. During the same period in the prior year, the company earned $2.37 EPS. Check Point Software Technologies’s revenue was up 1.3% on a year-over-year basis. Check Point Software Technologies has set its Q3 2026 guidance at 2.430-2.530 EPS and its FY 2026 guidance at 10.050-10.850 EPS. Equities research analysts anticipate that Check Point Software Technologies Ltd. will post 8.44 EPS for the current fiscal year.

Insider Buying and Selling

In related news, Director Yoav Chelouche sold 25,000 shares of the stock in a transaction that occurred on Tuesday, June 2nd. The shares were sold at an average price of $140.28, for a total transaction of $3,507,000.00. Following the completion of the sale, the director directly owned 4,008 shares of the company’s stock, valued at $562,242.24. This represents a 86.18% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 29.00% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the business. Norges Bank bought a new position in shares of Check Point Software Technologies in the fourth quarter valued at $731,276,000. Massachusetts Financial Services Co. MA lifted its position in shares of Check Point Software Technologies by 28.6% during the 4th quarter. Massachusetts Financial Services Co. MA now owns 7,937,229 shares of the technology company’s stock valued at $1,472,832,000 after acquiring an additional 1,766,774 shares during the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its stake in shares of Check Point Software Technologies by 26,561.6% during the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 1,233,899 shares of the technology company’s stock worth $228,962,000 after acquiring an additional 1,229,271 shares in the last quarter. DNB Asset Management AS boosted its stake in shares of Check Point Software Technologies by 105.0% during the 4th quarter. DNB Asset Management AS now owns 1,820,339 shares of the technology company’s stock worth $337,782,000 after acquiring an additional 932,485 shares in the last quarter. Finally, Altshuler Shaham Ltd grew its holdings in shares of Check Point Software Technologies by 6,253,188.9% in the 4th quarter. Altshuler Shaham Ltd now owns 562,796 shares of the technology company’s stock worth $104,432,000 after acquiring an additional 562,787 shares during the last quarter. Institutional investors and hedge funds own 98.51% of the company’s stock.

Check Point Software Technologies Company Profile

Check Point Software Technologies Ltd. is an Israeli-founded cybersecurity company that develops, markets and supports a broad portfolio of network, cloud and endpoint security products. Founded in 1993, the company was an early pioneer of stateful inspection firewall technology and later developed a modular “software blade” approach that allowed customers to combine protection capabilities. Check Point’s product set spans physical and virtual security appliances, software and cloud-native services designed to prevent cyberattacks, protect data and simplify security management for enterprises and service providers.

Key product families include Quantum Security Gateways (on-premises and hybrid appliances), CloudGuard (cloud security posture and workload protection), Harmony (endpoint, remote access and unified endpoint security), and SandBlast (advanced threat prevention and sandboxing).