Zacks Investment Research downgraded shares of FireEye, Inc. (NASDAQ:FEYE) from a hold rating to a sell rating in a research note published on Tuesday.
According to Zacks, “FireEye is a specialized provider of a security platform against cyber-attacks to enterprises and governments. A look at FireEye’s one year performance shows that the company has underperformed the broader market. Over the past several quarters, the company has been losing business to its rivals. Furthermore, 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. However, the company appears optimistic due to a healthy security market, strong product lineup, deal wins and investment plans, which should boost results in the long run. Furthermore, FireEye’s strategy of growing through acquisitions is encouraging.”
Several other analysts have also issued reports on FEYE. J P Morgan Chase & Co restated a hold rating and issued a $15.00 price objective on shares of FireEye in a report on Friday, November 4th. Bank of America Corporation reaffirmed a hold rating and issued a $15.00 target price on shares of FireEye in a research report on Friday, November 4th. Pacific Crest reaffirmed a hold rating on shares of FireEye in a research report on Friday, November 4th. William Blair reaffirmed a market perform rating on shares of FireEye in a research report on Sunday, November 6th. Finally, Barclays PLC reaffirmed an equal weight rating and issued a $16.00 target price on shares of FireEye in a research report on Sunday, November 6th. Three equities research analysts have rated the stock with a sell rating, eighteen have assigned a hold rating and twelve have assigned a buy rating to the company’s stock. FireEye currently has a consensus rating of Hold and a consensus price target of $18.52.
Shares of FireEye (NASDAQ:FEYE) traded down 1.102% during trading on Tuesday, hitting $13.015. 1,587,165 shares of the company traded hands. FireEye has a 52-week low of $10.87 and a 52-week high of $19.63. The stock’s market capitalization is $2.23 billion. The company has a 50-day moving average of $12.83 and a 200-day moving average of $14.06.
FireEye (NASDAQ:FEYE) last issued its quarterly earnings data on Thursday, November 3rd. The information security company reported ($0.18) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.31) by $0.13. The firm had revenue of $186.40 million for the quarter, compared to analyst estimates of $42.65 million. FireEye had a negative net margin of 77.67% and a negative return on equity of 44.91%. FireEye’s revenue was up 12.6% on a year-over-year basis. During the same period in the previous year, the firm earned ($0.37) EPS. Equities analysts expect that FireEye will post ($1.13) EPS for the current year.
In other FireEye news, insider David G. Dewalt sold 151,644 shares of the company’s stock in a transaction on Tuesday, January 3rd. The stock was sold at an average price of $11.64, for a total value of $1,765,136.16. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, CEO Kevin R. Mandia sold 112,581 shares of the company’s stock in a transaction on Wednesday, January 4th. The shares were sold at an average price of $12.29, for a total value of $1,383,620.49. Following the completion of the sale, the chief executive officer now directly owns 2,604,446 shares in the company, valued at approximately $32,008,641.34. The disclosure for this sale can be found here. Corporate insiders own 9.60% of the company’s stock.
Hedge funds have recently bought and sold shares of the stock. TRUE Private Wealth Advisors purchased a new stake in FireEye during the second quarter valued at $170,000. Ayalon Holdings Ltd. raised its stake in FireEye by 237.5% in the second quarter. Ayalon Holdings Ltd. now owns 13,500 shares of the information security company’s stock valued at $221,000 after buying an additional 9,500 shares during the period. Tocqueville Asset Management L.P. raised its stake in FireEye by 5.8% in the second quarter. Tocqueville Asset Management L.P. now owns 23,850 shares of the information security company’s stock valued at $393,000 after buying an additional 1,300 shares during the period. Quantitative Systematic Strategies LLC purchased a new stake in FireEye during the second quarter valued at $165,000. Finally, Huntington National Bank raised its stake in FireEye by 63.2% in the second quarter. Huntington National Bank now owns 90,565 shares of the information security company’s stock valued at $1,492,000 after buying an additional 35,070 shares during the period. 57.50% of the stock is currently owned by institutional investors.
FireEye Company Profile
FireEye, Inc provides cybersecurity solution for detecting, preventing and resolving cyber-attacks. The Company’s cybersecurity solutions combine its purpose-built virtual-machine technology, threat intelligence and security in a suite of products and services. The Company’s cybersecurity platform includes a family of software-based appliances, endpoint agents, cloud-based subscription services, support and maintenance and other services.
Get a free copy of the Zacks research report on FireEye (FEYE)
For more information about research offerings from Zacks Investment Research, visit Zacks.com