Check Point Software Technologies (NASDAQ:CHKP) Stock Price Down 6.5% - Time to Sell?

Key Points

• Check Point shares fell 6.5% to about $142.16, with trading volume well below average. The stock’s average analyst rating is “Hold,” with a consensus price target of $150.39.
• The company slightly exceeded quarterly EPS expectations at $2.49 but missed revenue estimates, reporting $669.8 million, down 1.1% year over year. Analysts project full-year EPS of approximately $8.45.
• Insiders recently sold shares under pre-arranged trading plans, while institutional investors own a substantial 98.51% of the stock; the company maintains strong profitability, including a 37.93% net margin and 38.80% return on equity.

Check Point Software Technologies Ltd. (NASDAQ:CHKP - Get Free Report)'s share price was down 6.5% on Monday. The stock traded as low as $144.08 and last traded at $142.1570. Approximately 430,012 shares traded hands during mid-day trading, a decline of 68% from the average session volume of 1,341,361 shares. The stock had previously closed at $152.11.

Analyst Ratings Changes

Several equities research analysts recently issued reports on the company. TD Cowen reissued a "buy" rating on shares of Check Point Software Technologies in a research note on Thursday, July 30th. Bank of America increased their target price on shares of Check Point Software Technologies from $120.00 to $140.00 and gave the company a "neutral" rating in a report on Monday, July 27th. Raymond James Financial cut shares of Check Point Software Technologies from an "outperform" rating to a "market perform" rating in a report on Wednesday, July 15th. Yorkville Ives assumed coverage on Check Point Software Technologies in a report on Wednesday, October 7th. They issued an "outperform" rating and a $150.00 price objective for the company. Finally, Barclays decreased their target price on Check Point Software Technologies from $145.00 to $140.00 and set an "equal weight" rating for the company in a report on Friday, July 31st. Nine analysts have rated the stock with a Buy rating and eighteen have given a Hold rating to the company's stock. According to data from MarketBeat.com, Check Point Software Technologies currently has an average rating of "Hold" and an average target price of $150.39.

Check Point Software Technologies Trading Down 4.0%

The firm has a market cap of $14.91 billion, a PE ratio of 14.95, a PEG ratio of 4.35 and a beta of 0.43. The company has a quick ratio of 1.67, a current ratio of 1.67 and a debt-to-equity ratio of 0.72. The stock's fifty day simple moving average is $137.39 and its two-hundred day simple moving average is $141.75.

Check Point Software Technologies (NASDAQ:CHKP - Get Free Report) last released its earnings results on Monday, November 2nd. The technology company reported $2.49 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.48 by $0.01. The firm had revenue of $669.80 million during the quarter, compared to analyst estimates of $672.06 million. Check Point Software Technologies had a net margin of 37.93% and a return on equity of 38.80%. The business's revenue was down 1.1% on a year-over-year basis. During the same period last year, the business earned $3.94 earnings per share. On average, sell-side analysts forecast that Check Point Software Technologies Ltd. will post 8.45 EPS for the current fiscal year.

Insider Transactions at Check Point Software Technologies

In other news, insider Nataly Kremer sold 3,185 shares of the company's stock in a transaction that occurred on Thursday, October 22nd. The shares were sold at an average price of $150.08, for a total value of $478,004.80. Following the transaction, the insider owned 19,347 shares in the company, valued at approximately $2,903,597.76. This represents a 14.14% decrease in their ownership of the stock. The sale 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. Also, CRO Sherif Seddik sold 10,272 shares of the company's stock in a transaction that occurred on Tuesday, August 4th. The stock was sold at an average price of $123.59, for a total transaction of $1,269,516.48. Following the completion of the transaction, the executive owned 24,675 shares in the company, valued at approximately $3,049,583.25. This represents a 29.39% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 29.00% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Check Point Software Technologies

Several hedge funds and other institutional investors have recently added to or reduced their stakes in CHKP. Junto Capital Management LP purchased a new position in Check Point Software Technologies in the 2nd quarter worth about $72,445,000. Renaissance Technologies LLC purchased a new position in shares of Check Point Software Technologies during the first quarter valued at approximately $34,171,000. VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new position in shares of Check Point Software Technologies during the second quarter valued at approximately $25,752,000. Bank of America Corp DE lifted its position in Check Point Software Technologies by 26.6% during the first quarter. Bank of America Corp DE now owns 808,428 shares of the technology company's stock valued at $115,484,000 after purchasing an additional 170,024 shares during the period. Finally, Mizuho Markets Americas LLC lifted its position in Check Point Software Technologies by 633.4% during the first quarter. Mizuho Markets Americas LLC now owns 158,900 shares of the technology company's stock valued at $22,699,000 after purchasing an additional 137,235 shares during the period. 98.51% of the stock is owned by institutional investors.

About Check Point Software Technologies

Check Point Software Technologies Ltd. is a cybersecurity company that develops products and services designed to protect organizations, governments and consumers from cyber threats. Its offerings help secure networks, cloud environments, endpoints, mobile devices, data and remote access, with capabilities including threat prevention, firewall protection, intrusion prevention, email security and security management.

The company organizes its portfolio under platforms that include Quantum for network security, CloudGuard for cloud security and Harmony for user, endpoint and remote-access protection.

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