Investors Buy High Volume of Call Options on SentinelOne (NYSE:S)

Key Points

• SentinelOne saw unusually high call-option activity: Investors purchased 20,509 call options, about 22% above its typical volume of 16,832.
• The company beat quarterly estimates, with revenue up 20.6% year over year, and raised fiscal 2027 guidance to approximately $1.202 billion-$1.207 billion in revenue and $0.30-$0.32 in adjusted EPS.
• Despite the results and several analyst price-target increases, shares fell to $21.06 as investors viewed the profit outlook as underwhelming following a recent rally; the company remains GAAP-unprofitable and insiders have reported net selling.

SentinelOne, Inc. (NYSE:S - Get Free Report) saw some unusual options trading activity on Friday. Stock investors bought 20,509 call options on the stock. This is an increase of approximately 22% compared to the typical volume of 16,832 call options.

Key Stories Impacting SentinelOne

Here are the key news stories impacting SentinelOne this week:

• Positive Sentiment: SentinelOne raised its fiscal 2027 outlook, projecting revenue of approximately $1.202 billion to $1.207 billion and adjusted EPS of $0.30 to $0.32. Third-quarter revenue guidance of $309 million to $311 million was broadly in line with expectations, while EPS guidance of $0.08 to $0.09 was well above the listed consensus estimate. S Q2 Earnings Call Spotlights AI Security and Raised Outlook
• Positive Sentiment: Several analysts raised their price targets following the results. TD Cowen lifted its target to $26 and Canaccord Genuity to $25, both maintaining buy ratings; Needham, Citizens JMP, Cantor Fitzgerald and Rosenblatt also reiterated bullish views with targets ranging from $25 to $26. SentinelOne Analysts Increase Their Forecasts After Q2 Results
• Neutral Sentiment: The broader cybersecurity sector has recently benefited from a valuation re-rating, potentially supporting SentinelOne’s shares, although this tailwind has not outweighed the company-specific guidance concerns. Cybersecurity Re-Rating Reaches the Laggards
• Negative Sentiment: Investors are concerned that the improved earnings forecast may not represent enough upside after the stock’s recent rally. Reports characterized the profit outlook as trimmed or underwhelming, causing the strong quarterly results to be overshadowed. SentinelOne Slides as Trimmed Profit Forecast Outweighs Revenue Beat
• Negative Sentiment: SentinelOne remains unprofitable on a GAAP basis, with a negative net margin and negative return on equity. Separate tracking also showed insider selling with no reported insider purchases over the past six months, a potential sentiment headwind.

SentinelOne Price Performance

NYSE S traded down $1.65 during trading hours on Friday, reaching $21.06. 11,266,267 shares of the stock traded hands, compared to its average volume of 8,000,227. The stock has a 50 day simple moving average of $19.20 and a two-hundred day simple moving average of $16.25. SentinelOne has a 1 year low of $11.81 and a 1 year high of $23.95. The company has a market cap of $7.22 billion, a price-to-earnings ratio of -21.94 and a beta of 0.79.

SentinelOne (NYSE:S - Get Free Report) last announced its quarterly earnings data on Thursday, August 27th. The company reported $0.08 EPS for the quarter, beating the consensus estimate of $0.07 by $0.01. The firm had revenue of $291.98 million for the quarter, compared to analyst estimates of $290.24 million. SentinelOne had a negative return on equity of 15.35% and a negative net margin of 30.39%.The company's revenue was up 20.6% on a year-over-year basis. During the same period in the prior year, the company earned ($0.22) EPS. SentinelOne has set its FY 2027 guidance at 0.300-0.320 EPS and its Q3 2027 guidance at 0.080-0.090 EPS. On average, sell-side analysts forecast that SentinelOne will post -0.44 EPS for the current fiscal year.

Analyst Upgrades and Downgrades

Several equities analysts recently commented on S shares. JPMorgan Chase & Co. boosted their target price on SentinelOne from $18.00 to $22.00 and gave the stock a "neutral" rating in a research report on Friday, August 21st. Piper Sandler raised their price target on SentinelOne from $15.00 to $20.00 and gave the company a "neutral" rating in a report on Friday. Rosenblatt Securities reiterated a "buy" rating and set a $25.00 price target on shares of SentinelOne in a research report on Friday. TD Cowen upped their price objective on shares of SentinelOne from $25.00 to $26.00 and gave the stock a "buy" rating in a research report on Friday. Finally, Wells Fargo & Company raised their target price on shares of SentinelOne from $16.00 to $22.00 and gave the company an "equal weight" rating in a research note on Monday, August 17th. Seventeen analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $23.08.

Insider Buying and Selling at SentinelOne

In other SentinelOne news, CAO Robin Tomasello sold 5,467 shares of the stock in a transaction that occurred on Thursday, August 6th. The shares were sold at an average price of $20.08, for a total value of $109,777.36. Following the sale, the chief accounting officer directly owned 439,863 shares in the company, valued at $8,832,449.04. This represents a 1.23% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, COO Barry L. Padgett sold 9,778 shares of the firm's stock in a transaction on Thursday, August 6th. The shares were sold at an average price of $20.09, for a total transaction of $196,440.02. Following the completion of the transaction, the chief operating officer directly owned 977,430 shares of the company's stock, valued at approximately $19,636,568.70. The trade was a 0.99% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 423,705 shares of company stock worth $7,369,527 in the last ninety days. Insiders own 4.27% of the company's stock.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in the business. Corient Private Wealth LP lifted its holdings in shares of SentinelOne by 801.7% in the 2nd quarter. Corient Private Wealth LP now owns 134,418 shares of the company's stock worth $2,281,000 after acquiring an additional 119,511 shares during the last quarter. California State Teachers Retirement System raised its position in SentinelOne by 1,616.3% in the 2nd quarter. California State Teachers Retirement System now owns 6,147,399 shares of the company's stock worth $104,321,000 after purchasing an additional 5,789,226 shares during the period. HB Wealth Management LLC raised its position in SentinelOne by 43.0% in the 2nd quarter. HB Wealth Management LLC now owns 37,206 shares of the company's stock worth $631,000 after purchasing an additional 11,190 shares during the period. Odyssean LLC lifted its stake in SentinelOne by 38.0% in the second quarter. Odyssean LLC now owns 130,431 shares of the company's stock worth $2,213,000 after purchasing an additional 35,950 shares during the last quarter. Finally, Nykredit A S bought a new stake in SentinelOne in the second quarter worth $214,000. 90.87% of the stock is owned by hedge funds and other institutional investors.

SentinelOne Company Profile

SentinelOne, Inc is a cybersecurity company specializing in AI-driven, autonomous endpoint protection. Founded in 2013 and headquartered in Mountain View, California, the firm developed its Singularity Platform to unify prevention, detection, response, and hunting across endpoints, cloud workloads, containers and IoT devices. SentinelOne's solutions leverage machine learning and behavioral analytics to identify threats in real time, automate remediation workflows and deliver forensics to support rapid incident response.

The company's flagship product suite includes endpoint security agents, cloud workload protection, identity threat detection and extended detection and response (XDR) capabilities.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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