Check Point Software Technologies (NASDAQ:CHKP) Shares Gap Down - Here's What Happened

Key Points

• Check Point Software Technologies (NASDAQ: CHKP) gapped down at the open, falling from a prior close of $137.02 to an opening price of $132.22 before last trading around $135.22.
• Analysts remain mixed on the stock after recent target changes: UBS cut its price objective to $130, while Truist and Barclays set targets of $150 and $145, respectively. Overall, the consensus rating is Hold with a consensus target price of $150.70.
• The company recently beat earnings expectations with $2.50 EPS versus $2.42 expected, though revenue came in slightly below estimates. A director also sold 25,000 shares in a pre-arranged Rule 10b5-1 transaction.

Check Point Software Technologies Ltd. (NASDAQ:CHKP - Get Free Report) gapped down before the market opened on Wednesday . The stock had previously closed at $137.02, but opened at $132.22. Check Point Software Technologies shares last traded at $135.2210, with a volume of 154,312 shares traded.

Analysts Set New Price Targets

Several analysts have recently commented on CHKP shares. Truist Financial set a $150.00 price target on Check Point Software Technologies in a report on Thursday, April 30th. Compass Point set a $120.00 price objective on Check Point Software Technologies in a report on Monday, May 4th. UBS Group cut their price objective on Check Point Software Technologies from $170.00 to $130.00 and set a "neutral" rating for the company in a research report on Friday, May 1st. Wedbush reduced their target price on Check Point Software Technologies from $210.00 to $160.00 and set an "outperform" rating for the company in a report on Friday, May 1st. Finally, Barclays boosted their target price on shares of Check Point Software Technologies from $133.00 to $145.00 and gave the stock an "equal weight" rating in a research report on Monday. Ten research analysts have rated the stock with a Buy rating, sixteen have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, the stock has a consensus rating of "Hold" and a consensus target price of $150.70.

Check Point Software Technologies Price Performance

The company has a debt-to-equity ratio of 0.70, a quick ratio of 1.85 and a current ratio of 1.85. The stock has a market capitalization of $14.12 billion, a PE ratio of 13.75, a P/E/G ratio of 3.96 and a beta of 0.49. The company's fifty day simple moving average is $128.33 and its two-hundred day simple moving average is $149.96.

Check Point Software Technologies (NASDAQ:CHKP - Get Free Report) last released its quarterly earnings results on Thursday, April 30th. The technology company reported $2.50 EPS for the quarter, beating the consensus estimate of $2.42 by $0.08. Check Point Software Technologies had a net margin of 38.37% and a return on equity of 38.79%. The business had revenue of $668.40 million for the quarter, compared to analyst estimates of $672.55 million. During the same period in the prior year, the business earned $2.21 earnings per share. The company's quarterly revenue was up 4.8% on a year-over-year basis. Check Point Software Technologies has set its FY 2026 guidance at 10.050-10.850 EPS and its Q2 2026 guidance at 2.400-2.500 EPS. As a group, sell-side analysts predict that Check Point Software Technologies Ltd. will post 8.46 EPS for the current year.

Insiders Place Their Bets

In other Check Point Software Technologies news, Director Yoav Chelouche sold 25,000 shares of the firm's stock in a transaction on Tuesday, June 2nd. The stock was sold at an average price of $140.28, for a total transaction of $3,507,000.00. Following the completion of the transaction, the director owned 4,008 shares of the company's stock, valued at approximately $562,242.24. This trade represents a 86.18% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 29.00% of the company's stock.

Institutional Trading of Check Point Software Technologies

A number of large investors have recently made changes to their positions in the stock. Abound Financial LLC acquired a new position in Check Point Software Technologies in the 4th quarter valued at about $27,000. Measured Wealth Private Client Group LLC acquired a new stake in shares of Check Point Software Technologies during the 3rd quarter worth about $27,000. MV Capital Management Inc. purchased a new stake in shares of Check Point Software Technologies during the fourth quarter worth about $28,000. Ascentis Independent Advisors purchased a new stake in shares of Check Point Software Technologies during the first quarter worth about $30,000. Finally, Elevation Wealth Partners LLC raised its position in shares of Check Point Software Technologies by 42.7% in the second quarter. Elevation Wealth Partners LLC now owns 254 shares of the technology company's stock valued at $33,000 after buying an additional 76 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).

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