Radware (NASDAQ:RDWR) Share Price Passes Above 200-Day Moving Average - Should You Sell?

Key Points

• Radware's share price recently crossed above its 200-day moving average
• Analyst sentiment is mixed with a MarketBeat consensus rating of "Hold" and a consensus target of $30; recent notes include a Weiss Ratings "sell (d+)" and a Wall Street Zen upgrade to "buy."
• Fundamentals show a modest beat — $0.32 EPS vs. $0.30 expected and revenue of $80.25M (up 9.9% year-over-year) — and the company approved an $80 million share repurchase (about 7.1% of shares) amid heavy institutional ownership (~73%).

Radware Ltd. (NASDAQ:RDWR - Get Free Report)'s share price crossed above its 200-day moving average during trading on Monday . The stock has a 200-day moving average of $24.71 and traded as high as $26.52. Radware shares last traded at $26.48, with a volume of 144,642 shares changing hands.

Wall Street Analyst Weigh In

A number of analysts recently commented on the company. Weiss Ratings reiterated a "sell (d+)" rating on shares of Radware in a research report on Friday, March 27th. Wall Street Zen upgraded Radware from a "hold" rating to a "buy" rating in a research report on Saturday, April 4th. Two investment analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the stock currently has an average rating of "Hold" and a consensus target price of $30.00.

Radware Price Performance

The company has a market cap of $1.11 billion, a PE ratio of 58.85 and a beta of 0.87. The business has a 50-day moving average of $25.38 and a 200 day moving average of $24.71.

Radware (NASDAQ:RDWR - Get Free Report) last posted its quarterly earnings data on Wednesday, February 11th. The information technology services provider reported $0.32 EPS for the quarter, topping the consensus estimate of $0.30 by $0.02. Radware had a return on equity of 7.21% and a net margin of 6.71%.The firm had revenue of $80.25 million for the quarter, compared to the consensus estimate of $78.65 million. During the same quarter last year, the company earned $0.27 earnings per share. The business's revenue for the quarter was up 9.9% compared to the same quarter last year.

Radware declared that its board has approved a stock repurchase program on Friday, February 13th that authorizes the company to repurchase $80.00 million in outstanding shares. This repurchase authorization authorizes the information technology services provider to buy up to 7.1% of its shares through open market purchases. Shares repurchase programs are typically a sign that the company's leadership believes its shares are undervalued.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in RDWR. Morgan Stanley raised its stake in shares of Radware by 28.9% in the fourth quarter. Morgan Stanley now owns 2,619,687 shares of the information technology services provider's stock worth $63,108,000 after buying an additional 588,064 shares during the period. Artisan Partners Limited Partnership raised its stake in shares of Radware by 16.0% in the third quarter. Artisan Partners Limited Partnership now owns 3,130,252 shares of the information technology services provider's stock worth $82,920,000 after buying an additional 431,572 shares during the period. Defiance ETFs LLC bought a new position in shares of Radware in the fourth quarter worth about $9,152,000. First Trust Advisors LP raised its stake in shares of Radware by 28.7% in the fourth quarter. First Trust Advisors LP now owns 1,562,396 shares of the information technology services provider's stock worth $37,638,000 after buying an additional 348,824 shares during the period. Finally, Deutsche Bank AG raised its stake in shares of Radware by 908.4% in the fourth quarter. Deutsche Bank AG now owns 302,478 shares of the information technology services provider's stock worth $7,287,000 after buying an additional 272,481 shares during the period. Institutional investors own 73.12% of the company's stock.

Radware Company Profile

Radware Ltd. provides cybersecurity and application delivery solutions designed to ensure the availability, performance and security of mission‐critical applications. Its product portfolio includes on‐premises and cloud‐based offerings such as Alteon application delivery controllers, DefensePro network behavior analysis for DDoS mitigation and AppWall web application firewall. The company's platforms use real‐time behavioral analysis, machine learning and automation to protect against distributed denial‐of‐service attacks, application layer threats and network intrusions.

Founded in 1997, Radware is co-headquartered in Tel Aviv, Israel, with a principal U.S.

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