Proofpoint (NASDAQ:PFPT) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a report released 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.”
Several other equities research analysts also recently commented on PFPT. TheStreet raised shares of Proofpoint from a “d” rating to a “c-” rating in a research note on Wednesday, February 7th. Imperial Capital upped their target price on shares of Proofpoint from $110.00 to $120.00 and gave the company an “outperform” rating in a research note on Thursday, February 8th. Monness Crespi & Hardt increased their price objective on shares of Proofpoint from $110.00 to $115.00 and gave the stock a “buy” rating in a research report on Wednesday, February 7th. Royal Bank of Canada increased their price objective on shares of Proofpoint from $100.00 to $112.00 and gave the stock an “outperform” rating in a research report on Wednesday, February 7th. Finally, Morgan Stanley increased their price objective on shares of Proofpoint from $116.00 to $124.00 and gave the stock an “overweight” rating in a research report on Tuesday, January 30th. One research analyst has rated the stock with a sell rating, six have issued a hold rating, twenty-one have given a buy rating and one has given a strong buy rating to the company. Proofpoint has a consensus rating of “Buy” and an average price target of $107.63.
Proofpoint (NASDAQ:PFPT) last issued its earnings results on Tuesday, February 6th. The software maker reported $0.29 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $0.21 by $0.08. Proofpoint had a negative net margin of 16.37% and a negative return on equity of 131.99%. The firm had revenue of $145.40 million during the quarter, compared to the consensus estimate of $139.61 million. During the same quarter in the prior year, the firm earned $0.18 earnings per share. The business’s quarterly revenue was up 36.1% on a year-over-year basis. equities research analysts anticipate that Proofpoint will post -0.91 earnings per share for the current fiscal year.
In other Proofpoint news, EVP Tracey Newell sold 8,187 shares of the stock in a transaction on Tuesday, February 20th. The shares were sold at an average price of $106.35, for a total value of $870,687.45. Following the completion of the sale, the executive vice president now owns 24,723 shares in the company, valued at $2,629,291.05. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, EVP Bhagwat Swaroop sold 900 shares of the stock in a transaction on Wednesday, February 14th. The shares were 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 owns 4,077 shares of the company’s stock, valued at approximately $403,052.22. The disclosure for this sale can be found here. In the last quarter, insiders sold 187,303 shares of company stock valued at $17,637,911. Corporate insiders own 5.96% of the company’s stock.
A number of hedge funds have recently made changes to their positions in PFPT. Dimensional Fund Advisors LP lifted its stake in Proofpoint by 433.0% in the second quarter. Dimensional Fund Advisors LP now owns 29,440 shares of the software maker’s stock valued at $2,556,000 after acquiring an additional 23,917 shares during the last quarter. The Manufacturers Life Insurance Company lifted its stake in Proofpoint by 4.9% in the second quarter. The Manufacturers Life Insurance Company now owns 32,960 shares of the software maker’s stock valued at $2,862,000 after acquiring an additional 1,554 shares during the last quarter. Raymond James Financial Services Advisors Inc. acquired a new stake in Proofpoint in the second quarter valued at $253,000. Public Employees Retirement System of Ohio lifted its stake in Proofpoint by 46.1% in the second quarter. Public Employees Retirement System of Ohio now owns 20,142 shares of the software maker’s stock valued at $1,749,000 after acquiring an additional 6,357 shares during the last quarter. Finally, Dynamic Technology Lab Private Ltd acquired a new stake in Proofpoint in the second quarter valued at $215,000.
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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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