Cognyte Software (NASDAQ:CGNT) Shares Gap Up After Strong Earnings

Key Points

• Cognyte Software beat earnings expectations: The company reported quarterly EPS of $0.15, above the $0.09 consensus estimate, while revenue of $105.5 million fell short of the $108.51 million forecast.
• Shares opened at $8.55 after previously closing at $8.23, but later traded at $8.26. Analysts maintain a consensus “Hold” rating with a $13.50 price target.
• Institutional investors increased their positions, and hedge funds and other institutions now own 72.92% of Cognyte’s outstanding shares.

Cognyte Software Ltd. (NASDAQ:CGNT - Get Free Report) shares gapped up prior to trading on Wednesday after the company announced better than expected quarterly earnings. The stock had previously closed at $8.23, but opened at $8.55. Cognyte Software shares last traded at $8.26, with a volume of 404,468 shares traded.

The company reported $0.15 earnings per share for the quarter, beating analysts' consensus estimates of $0.09 by $0.06. Cognyte Software had a negative net margin of 0.66% and a negative return on equity of 0.45%. The business had revenue of $105.50 million for the quarter, compared to the consensus estimate of $108.51 million. Cognyte Software has set its FY 2027 guidance at 0.470-0.470 EPS.

Analyst Upgrades and Downgrades

CGNT has been the topic of a number of recent analyst reports. Wall Street Zen cut shares of Cognyte Software from a "buy" rating to a "hold" rating in a research report on Saturday, June 6th. Zacks Research raised Cognyte Software from a "strong sell" rating to a "hold" rating in a research note on Monday, August 3rd. Two investment analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus price target of $13.50.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the stock. American Capital Management Inc. raised its holdings in shares of Cognyte Software by 0.6% during the third quarter. American Capital Management Inc. now owns 6,751,962 shares of the company's stock worth $56,716,000 after acquiring an additional 39,721 shares during the period. Westerly Capital Management LLC boosted its stake in Cognyte Software by 5.0% in the 4th quarter. Westerly Capital Management LLC now owns 1,155,000 shares of the company's stock worth $10,857,000 after purchasing an additional 55,000 shares during the period. Millennium Management LLC increased its holdings in Cognyte Software by 101.9% during the 1st quarter. Millennium Management LLC now owns 921,853 shares of the company's stock worth $7,190,000 after purchasing an additional 465,307 shares in the last quarter. Scalar Gauge Management LLC increased its holdings in Cognyte Software by 14.6% during the 4th quarter. Scalar Gauge Management LLC now owns 904,099 shares of the company's stock worth $8,499,000 after purchasing an additional 115,000 shares in the last quarter. Finally, Samjo Management LLC raised its stake in shares of Cognyte Software by 64.4% in the 4th quarter. Samjo Management LLC now owns 896,325 shares of the company's stock valued at $8,425,000 after purchasing an additional 351,150 shares during the period. Institutional investors and hedge funds own 72.92% of the company's stock.

Cognyte Software Stock Up 1.0%

The company has a market capitalization of $614.33 million, a P/E ratio of -207.38 and a beta of 1.67. The business has a fifty day moving average price of $8.84 and a 200 day moving average price of $8.91.

About Cognyte Software

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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