Radware (NASDAQ:RDWR) Shares Down 7.7% - Should You Sell?

Key Points

• Radware Ltd. (NASDAQ: RDWR) shares fell 7.7% to $26.15, marking a significant decline during trading with volume down 62% from average.
• Wall Street analysts give Radware a consensus rating of "Moderate Buy" with a target price increase to $30.00, indicating positive sentiment among some analysts.
• The company reported quarterly earnings of $0.28 per share, beating estimates, and experienced a 10.3% year-over-year revenue increase to $74.22 million.

Radware Ltd. (NASDAQ:RDWR - Get Free Report) shares traded down 7.7% during trading on Wednesday . The company traded as low as $26.00 and last traded at $26.15. 79,781 shares traded hands during trading, a decline of 62% from the average session volume of 210,380 shares. The stock had previously closed at $28.33.

Analyst Upgrades and Downgrades

A number of research analysts have recently commented on the stock. Wolfe Research assumed coverage on shares of Radware in a research report on Tuesday, July 8th. They set an "outperform" rating for the company. Jefferies Financial Group upped their price objective on shares of Radware from $25.00 to $30.00 and gave the company a "hold" rating in a research report on Thursday, July 24th. Finally, Barclays reaffirmed an "overweight" rating and set a $35.00 price objective (up previously from $30.00) on shares of Radware in a research report on Thursday. Two equities research analysts have rated the stock with a hold rating, two have assigned a buy rating and one has given a strong buy rating to the company's stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $32.50.

Radware Price Performance

The firm has a market cap of $1.08 billion, a P/E ratio of 79.16 and a beta of 0.97. The stock's 50 day moving average is $27.25 and its two-hundred day moving average is $24.04.

Radware (NASDAQ:RDWR - Get Free Report) last posted its earnings results on Wednesday, July 30th. The information technology services provider reported $0.28 earnings per share for the quarter, beating analysts' consensus estimates of $0.26 by $0.02. The business had revenue of $74.22 million for the quarter, compared to analysts' expectations of $73.42 million. Radware had a net margin of 4.90% and a return on equity of 6.11%. The firm's revenue for the quarter was up 10.3% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.20 earnings per share. As a group, research analysts forecast that Radware Ltd. will post 0.28 EPS for the current fiscal year.

Institutional Trading of Radware

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Envestnet Asset Management Inc. increased its stake in Radware by 19.2% in the second quarter. Envestnet Asset Management Inc. now owns 57,361 shares of the information technology services provider's stock valued at $1,689,000 after acquiring an additional 9,241 shares during the period. KLP Kapitalforvaltning AS increased its stake in Radware by 172.7% in the second quarter. KLP Kapitalforvaltning AS now owns 18,000 shares of the information technology services provider's stock valued at $530,000 after acquiring an additional 11,400 shares during the period. Public Employees Retirement System of Ohio grew its stake in Radware by 14.1% during the second quarter. Public Employees Retirement System of Ohio now owns 59,166 shares of the information technology services provider's stock worth $1,742,000 after buying an additional 7,309 shares during the last quarter. Inspire Investing LLC bought a new stake in Radware during the first quarter worth about $738,000. Finally, Ellsworth Advisors LLC grew its stake in Radware by 7.9% during the first quarter. Ellsworth Advisors LLC now owns 30,258 shares of the information technology services provider's stock worth $654,000 after buying an additional 2,206 shares during the last quarter. Institutional investors own 73.12% of the company's stock.

About Radware

Radware Ltd., together with its subsidiaries, develops, manufactures, and markets cyber security and application delivery solutions for cloud, on-premises, and software defined data centers worldwide. The company operates in two segments, Radware's Core Business and The Hawks' Business. It offers DefensePro provides automated DDoS protection; Radware Kubernetes, a web application firewall solution; and Cyber Controller, a unified solution for management, configuration, and attack lifecycle.