SentinelOne (NYSE:S) Shares Gap Down - What's Next?

Key Points

• SentinelOne shares opened sharply lower, falling from a prior close of $25.66 to $23.46 before recovering to about $25.03; the company has an $8.68 billion market capitalization.
• Analyst sentiment remains favorable overall, with a consensus rating of “Moderate Buy” and an average price target of $23.92, although recommendations range from Sell to Buy.
• The company beat its latest quarterly EPS and revenue estimates, with revenue up 20.6% year over year, but it remains unprofitable. Insiders sold more than $21 million in stock over the past three months, while institutional investors own 90.87% of shares.

SentinelOne, Inc. (NYSE:S - Get Free Report) gapped down prior to trading on Tuesday. The stock had previously closed at $25.66, but opened at $23.46. SentinelOne shares last traded at $25.0250, with a volume of 2,771,702 shares changing hands.

Analyst Upgrades and Downgrades

A number of equities research analysts recently weighed in on the stock. Weiss Ratings raised shares of SentinelOne from a "sell (e+)" rating to a "sell (d-)" rating in a research report on Tuesday, July 21st. Susquehanna raised their target price on shares of SentinelOne from $20.00 to $28.00 and gave the stock a "positive" rating in a report on Monday, August 31st. TD Cowen raised their target price on shares of SentinelOne from $26.00 to $29.00 and gave the stock a "buy" rating in a report on Friday, October 2nd. Wells Fargo & Company lifted their target price on SentinelOne from $16.00 to $22.00 and gave the company an "equal weight" rating in a research note on Monday, August 17th. Finally, Piper Sandler upped their target price on SentinelOne from $15.00 to $20.00 and gave the company a "neutral" rating in a report on Friday, August 28th. Sixteen equities research analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $23.92.

SentinelOne Trading Down 2.8%

The stock has a market cap of $8.68 billion, a P/E ratio of -24.71 and a beta of 0.70. The firm's 50-day simple moving average is $22.38 and its 200 day simple moving average is $18.30.

SentinelOne (NYSE:S - Get Free Report) last announced its quarterly earnings results on Thursday, August 27th. The company reported $0.08 EPS for the quarter, beating the consensus estimate of $0.07 by $0.01. The company had revenue of $291.98 million for the quarter, compared to analyst estimates of $290.24 million. SentinelOne had a negative net margin of 30.95% and a negative return on equity of 15.73%. SentinelOne's revenue was up 20.6% compared to the same quarter last year. During the same quarter last year, the business earned ($0.22) earnings per share. 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, analysts anticipate that SentinelOne, Inc. will post -0.46 EPS for the current year.

Insiders Place Their Bets

In related news, CEO Tomer Weingarten sold 527,368 shares of the firm's stock in a transaction that occurred on Monday, October 5th. The stock was sold at an average price of $25.26, for a total value of $13,321,315.68. Following the sale, the chief executive officer directly owned 1,717,510 shares in the company, valued at $43,384,302.60. This trade represents a 23.49% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Ana Pinczuk sold 16,042 shares of SentinelOne stock in a transaction on Tuesday, October 6th. The shares were sold at an average price of $25.33, for a total value of $406,343.86. Following the sale, the insider directly owned 721,674 shares in the company, valued at $18,280,002.42. The trade was a 2.17% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last three months, insiders sold 915,183 shares of company stock worth $21,151,124. 4.27% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of S. Diamond Hill Capital Management LLC Investment Advisor bought a new position in SentinelOne during the second quarter valued at about $59,607,000. Wellington Management Group LLP raised its position in SentinelOne by 216.0% in the second quarter. Wellington Management Group LLP now owns 5,015,311 shares of the company's stock worth $85,110,000 after acquiring an additional 3,428,192 shares in the last quarter. Kettle Hill Capital Management LLC bought a new stake in SentinelOne in the fourth quarter worth about $25,746,000. Segall Bryant & Hamill LLC bought a new stake in SentinelOne in the first quarter worth about $17,434,000. Finally, ExodusPoint Capital Management LP lifted its holdings in SentinelOne by 285.1% in the 4th quarter. ExodusPoint Capital Management LP now owns 1,415,373 shares of the company's stock valued at $21,231,000 after acquiring an additional 1,047,816 shares during the last quarter. 90.87% of the stock is owned by institutional investors and hedge funds.

SentinelOne Company Profile

SentinelOne, Inc NYSE: S is a cybersecurity company that develops artificial intelligence-powered software to help organizations prevent, detect, investigate and respond to cyber threats. Its Singularity Platform is designed to protect enterprise endpoints, cloud workloads, identities and other connected assets across an organization's technology environment.

The company's offerings include endpoint protection and detection and response, cloud security, identity security, security operations tools and data management capabilities.

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