SentinelOne (NYSE:S) Shares Gap Up - Still a Buy?

Key Points

• SentinelOne shares rose sharply, opening at $20.63 versus a prior close of $19.75 and recently trading around $21.45.
• Analyst sentiment is broadly positive: 17 analysts rate the stock a Buy, 11 a Hold and one a Sell, producing a “Moderate Buy” consensus and a $23.50 average price target. Recent targets range as high as $28.
• The company exceeded quarterly expectations with adjusted EPS of $0.08 versus $0.07 expected and revenue of $291.98 million, up 20.6% year over year. However, SentinelOne remains unprofitable, with a negative net margin of 30.95%, while insiders have sold roughly $6.34 million of shares over the past 90 days.

Shares of SentinelOne, Inc. (NYSE:S - Get Free Report) gapped up before the market opened on Monday . The stock had previously closed at $19.75, but opened at $20.63. SentinelOne shares last traded at $21.4460, with a volume of 1,048,062 shares changing hands.

Analyst Upgrades and Downgrades

A number of research firms have recently commented on S. Bank of America upgraded SentinelOne from a "neutral" rating to a "buy" rating and raised their price objective for the stock from $16.00 to $20.00 in a report on Friday, May 29th. Wedbush began coverage on shares of SentinelOne in a research report on Friday. They set an "outperform" rating and a $25.00 target price for the company. Scotiabank restated an "outperform" rating on shares of SentinelOne in a report on Friday, August 28th. Needham & Company LLC lifted their price target on shares of SentinelOne from $20.00 to $26.00 and gave the company a "buy" rating in a research report on Friday, August 28th. Finally, Susquehanna boosted their price objective on shares of SentinelOne from $20.00 to $28.00 and gave the stock a "positive" rating in a research note on Monday, August 31st. Seventeen analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $23.50.

SentinelOne Price Performance

The company has a market cap of $7.78 billion, a PE ratio of -21.90 and a beta of 0.77. The company has a 50-day moving average price of $20.09 and a two-hundred day moving average price of $16.78.

SentinelOne (NYSE:S - Get Free Report) last released its quarterly earnings results on Thursday, August 27th. The company reported $0.08 EPS for the quarter, topping 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 15.73% and a negative net margin of 30.95%.SentinelOne's revenue for the quarter was up 20.6% on a year-over-year basis. During the same period in the previous year, the company posted ($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, equities research analysts anticipate that SentinelOne, Inc. will post -0.46 earnings per share for the current year.

Insider Buying and Selling at SentinelOne

In other SentinelOne news, insider Ana G. Pinczuk sold 6,230 shares of the company's stock in a transaction dated Thursday, August 6th. The shares were sold at an average price of $20.09, for a total value of $125,160.70. Following the completion of the transaction, the insider directly owned 737,716 shares of the company's stock, valued at $14,820,714.44. This represents a 0.84% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. 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 dated Thursday, August 6th. The shares were sold at an average price of $20.09, for a total value of $196,440.02. Following the sale, the chief operating officer owned 977,430 shares of the company's stock, valued at $19,636,568.70. This represents a 0.99% decrease in their ownership of the stock. 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. In the last 90 days, insiders sold 330,866 shares of company stock worth $6,336,407. 4.27% of the stock is currently owned by insiders.

Hedge Funds Weigh In On SentinelOne

A number of institutional investors have recently made changes to their positions in S. Allied Private Wealth LLC bought a new stake in shares of SentinelOne in the second quarter worth $25,000. Allworth Financial LP raised its stake in shares of SentinelOne by 102.4% in the 3rd quarter. Allworth Financial LP now owns 1,435 shares of the company's stock valued at $25,000 after purchasing an additional 726 shares in the last quarter. Danske Bank A S bought a new position in shares of SentinelOne during the third quarter worth about $26,000. EFG International AG bought a new position in shares of SentinelOne during the fourth quarter worth about $41,000. Finally, Daiwa Securities Group Inc. grew its stake in SentinelOne by 25.2% in the second quarter. Daiwa Securities Group Inc. now owns 3,442 shares of the company's stock worth $63,000 after purchasing an additional 692 shares in the last quarter. 90.87% of the stock is owned by institutional investors and hedge funds.

SentinelOne Company Profile

SentinelOne, Inc is a cybersecurity company that develops artificial intelligence-powered software for protecting enterprises, governments and other organizations from cyber threats. Its Singularity Platform is designed to secure endpoints, cloud workloads, identities and enterprise data while helping customers detect, investigate and respond to attacks.

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

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