Cognyte Software (NASDAQ:CGNT) Shares Up 3.3% - Should You Buy?

Key Points

• Cognyte Software shares rose 3.3% to $8.915 during mid-day trading, though volume was 61% below the average daily level.
• Analyst sentiment has improved, with recent upgrades leading to a consensus “Buy” rating and a $13.50 price target—well above the current price.
• The company exceeded quarterly expectations, reporting $0.15 in EPS versus a $0.09 estimate and $109.24 million in revenue; however, its high P/E ratio of 284.33 and nearly flat net margin indicate valuation and profitability risks.

Cognyte Software Ltd. (NASDAQ:CGNT - Get Free Report) rose 3.3% during mid-day trading on Wednesday . The stock traded as high as $8.97 and last traded at $8.9150. 223,943 shares traded hands during mid-day trading, a decline of 61% from the average daily volume of 580,685 shares. The stock had previously closed at $8.63.

Analyst Ratings Changes

CGNT has been the topic of several analyst reports. Wall Street Zen raised Cognyte Software from a "hold" rating to a "buy" rating in a research report on Saturday, September 12th. Zacks Research raised Cognyte Software from a "hold" rating to a "strong-buy" rating in a research report on Monday, September 14th. Finally, Weiss Ratings upgraded Cognyte Software from a "sell (d-)" rating to a "hold (c-)" rating in a report on Monday, September 14th. One research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and one has issued a Hold rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Buy" and a consensus price target of $13.50.

Cognyte Software Trading Up 0.9%

The stock has a market cap of $643.30 million, a P/E ratio of 284.33 and a beta of 1.67. The company's 50 day moving average price is $8.71 and its two-hundred day moving average price is $9.00.

Cognyte Software (NASDAQ:CGNT - Get Free Report) last announced its earnings results on Wednesday, September 9th. The company reported $0.15 EPS for the quarter, beating analysts' consensus estimates of $0.09 by $0.06. The business had revenue of $109.24 million during the quarter, compared to analysts' expectations of $108.51 million. Cognyte Software had a negative net margin of 0.01% and a positive return on equity of 1.31%. Cognyte Software has set its FY 2027 guidance at 0.470-0.470 EPS. On average, sell-side analysts anticipate that Cognyte Software Ltd. will post 0.14 earnings per share for the current year.

Hedge Funds Weigh In On Cognyte Software

Several institutional investors and hedge funds have recently bought and sold shares of the stock. Tidal Investments LLC increased its position in Cognyte Software by 137.3% in the second quarter. Tidal Investments LLC now owns 119,440 shares of the company's stock worth $1,049,000 after buying an additional 69,103 shares in the last quarter. Engineers Gate Manager LP lifted its position in shares of Cognyte Software by 26.4% during the 2nd quarter. Engineers Gate Manager LP now owns 94,490 shares of the company's stock valued at $830,000 after buying an additional 19,718 shares in the last quarter. NewEdge Advisors LLC lifted its position in shares of Cognyte Software by 43.5% during the 2nd quarter. NewEdge Advisors LLC now owns 16,594 shares of the company's stock valued at $146,000 after buying an additional 5,034 shares in the last quarter. Public Employees Retirement System of Ohio bought a new position in shares of Cognyte Software during the 2nd quarter valued at approximately $2,182,000. Finally, American Capital Management Inc. bought a new stake in Cognyte Software during the 2nd quarter worth approximately $54,292,000. 72.92% of the stock is currently owned by hedge funds and other institutional investors.

Cognyte Software Company Profile

Cognyte Software Ltd. NASDAQ: CGNT develops software and technology solutions that help governments and other organizations transform large volumes of data into actionable intelligence. Its platforms are designed to support investigative, security and intelligence operations by enabling users to collect, analyze, visualize and manage information from multiple sources.

The company's product portfolio includes solutions for digital intelligence, investigative analytics, network intelligence and cyber-related investigations.

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