Cognyte Software (NASDAQ:CGNT) Shares Gap Up - Here's Why

Key Points

• Shares gapped up Monday, opening at $8.72 after a $8.40 close and last trading around $8.94 on volume of about 164,840 shares (market cap roughly $641M).
• Analyst coverage is mixed — two Buys, two Holds and one Sell for an average rating of Hold with an average price target of $13.50; recent notes include a Lake Street initiation (Buy, $13) and a Wall Street Zen upgrade to Strong-Buy.
• Latest quarter beat consensus on EPS ($0.10 vs. $0.01) and matched revenue expectations ($106.24M), but the company remains largely unprofitable (negative net margin) and analysts forecast about -0.2 EPS for the fiscal year.

Cognyte Software Ltd. (NASDAQ:CGNT - Get Free Report)'s stock price gapped up before the market opened on Monday . The stock had previously closed at $8.40, but opened at $8.72. Cognyte Software shares last traded at $8.9350, with a volume of 164,840 shares changing hands.

Analyst Upgrades and Downgrades

Several equities analysts have recently issued reports on CGNT shares. Lake Street Capital initiated coverage on Cognyte Software in a research note on Monday, March 2nd. They set a "buy" rating and a $13.00 target price on the stock. Weiss Ratings reissued a "sell (d-)" rating on shares of Cognyte Software in a research report on Wednesday, January 21st. Finally, Wall Street Zen upgraded shares of Cognyte Software from a "buy" rating to a "strong-buy" rating in a report on Saturday, March 28th. Two equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, Cognyte Software has an average rating of "Hold" and an average price target of $13.50.

Cognyte Software Price Performance

The stock has a 50 day simple moving average of $7.93 and a 200-day simple moving average of $8.46. The firm has a market cap of $641.42 million, a PE ratio of -879.00 and a beta of 1.53.

Cognyte Software (NASDAQ:CGNT - Get Free Report) last announced its quarterly earnings results on Wednesday, March 25th. The company reported $0.10 earnings per share for the quarter, beating the consensus estimate of $0.01 by $0.09. Cognyte Software had a negative net margin of 0.16% and a positive return on equity of 0.74%. The company had revenue of $106.24 million during the quarter, compared to the consensus estimate of $106.20 million. As a group, equities analysts predict that Cognyte Software Ltd. will post -0.2 EPS for the current fiscal year.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the business. Scalar Gauge Management LLC lifted its position in shares of Cognyte Software by 44.8% during the 3rd quarter. Scalar Gauge Management LLC now owns 789,099 shares of the company's stock valued at $6,628,000 after buying an additional 244,067 shares in the last quarter. Topline Capital Management LLC boosted its position in shares of Cognyte Software by 2.4% in the third quarter. Topline Capital Management LLC now owns 7,195,619 shares of the company's stock worth $60,443,000 after purchasing an additional 168,329 shares during the period. G2 Investment Partners Management LLC purchased a new stake in shares of Cognyte Software in the second quarter worth $2,460,000. Arrowstreet Capital Limited Partnership lifted its stake in shares of Cognyte Software by 49.3% during the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 840,735 shares of the company's stock valued at $7,768,000 after buying an additional 277,730 shares in the last quarter. Finally, CM Management LLC lifted its stake in shares of Cognyte Software by 60.0% during the 3rd quarter. CM Management LLC now owns 160,000 shares of the company's stock valued at $1,344,000 after buying an additional 60,000 shares in the last quarter. Hedge funds and other institutional investors own 72.92% of the company's stock.

Cognyte Software Company Profile

Cognyte Software Ltd. is a global provider of security analytics solutions that was spun off from NICE Ltd. in early 2021. Headquartered in Israel, the company delivers specialized software and services designed to help government agencies, law enforcement organizations and critical infrastructure operators process and analyze large volumes of data for intelligence and investigative purposes.

The company’s core offerings include advanced analytics platforms that aggregate and visualize structured and unstructured data from diverse sources, such as communications metadata, open-source intelligence and sensor feeds.

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