SailPoint (NASDAQ:SAIL) Trading 8.2% Higher - Should You Buy?

Key Points

• SailPoint shares rose 8.2% on Thursday, trading as high as $12.74 after closing at $11.81 the prior day, though volume was well below average.
• Analysts remain cautiously positive despite recent target cuts, with a consensus rating of “Moderate Buy” and an average price target of $21.35.
• The company’s latest earnings showed revenue growth of 22.9% year over year to $294.65 million, with EPS matching expectations at $0.08, while insiders recently sold shares under pre-arranged plans.

SailPoint, Inc. (NASDAQ:SAIL - Get Free Report)'s share price traded up 8.2% on Thursday . The stock traded as high as $12.74 and last traded at $12.7830. 897,622 shares were traded during mid-day trading, a decline of 70% from the average session volume of 2,969,856 shares. The stock had previously closed at $11.81.

Wall Street Analyst Weigh In

Several research analysts have recently weighed in on the stock. Barclays dropped their target price on shares of SailPoint from $23.00 to $20.00 and set an "overweight" rating on the stock in a research report on Monday, March 16th. Royal Bank Of Canada lowered their price objective on shares of SailPoint from $23.00 to $19.00 and set an "outperform" rating on the stock in a research report on Thursday, March 19th. Scotiabank lowered their price objective on shares of SailPoint from $24.00 to $16.00 and set a "sector outperform" rating on the stock in a research report on Thursday, March 19th. Wells Fargo & Company lowered their price objective on shares of SailPoint from $17.00 to $16.00 and set an "overweight" rating on the stock in a research report on Thursday, March 19th. Finally, FBN Securities began coverage on shares of SailPoint in a research report on Tuesday, February 24th. They set an "outperform" rating and a $18.00 price objective on the stock. Two investment analysts have rated the stock with a Strong Buy rating, fourteen have given a Buy rating, two have assigned a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $21.35.

SailPoint Stock Up 12.4%

The company has a market capitalization of $7.53 billion, a P/E ratio of -23.71 and a beta of 1.09. The company's 50-day simple moving average is $12.73 and its 200 day simple moving average is $16.50.

SailPoint (NASDAQ:SAIL - Get Free Report) last posted its earnings results on Wednesday, March 18th. The company reported $0.08 EPS for the quarter, hitting the consensus estimate of $0.08. The company had revenue of $294.65 million during the quarter. SailPoint had a negative net margin of 25.20% and a positive return on equity of 1.95%. The business's revenue was up 22.9% on a year-over-year basis. During the same period in the prior year, the firm earned ($4.29) earnings per share. As a group, equities research analysts forecast that SailPoint, Inc. will post 0.32 earnings per share for the current year.

Insider Buying and Selling

In other SailPoint news, insider Abby Payne sold 16,930 shares of the business's stock in a transaction that occurred on Thursday, April 9th. The shares were sold at an average price of $11.46, for a total value of $194,017.80. Following the completion of the sale, the insider directly owned 930,506 shares of the company's stock, valued at $10,663,598.76. The trade was a 1.79% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, President Matt Mills sold 34,171 shares of the business's stock in a transaction that occurred on Thursday, April 9th. The stock was sold at an average price of $11.46, for a total transaction of $391,599.66. Following the completion of the sale, the president directly owned 2,451,334 shares of the company's stock, valued at $28,092,287.64. This represents a 1.37% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last three months, insiders sold 526,962 shares of company stock valued at $6,420,108. 1.70% of the stock is owned by company insiders.

Institutional Trading of SailPoint

A number of institutional investors and hedge funds have recently modified their holdings of SAIL. Vanguard Group Inc. raised its position in shares of SailPoint by 4.3% during the third quarter. Vanguard Group Inc. now owns 5,317,789 shares of the company's stock valued at $117,417,000 after buying an additional 219,375 shares during the last quarter. Stephens Investment Management Group LLC grew its position in SailPoint by 10.9% during the third quarter. Stephens Investment Management Group LLC now owns 1,679,495 shares of the company's stock worth $37,083,000 after buying an additional 165,741 shares in the last quarter. Universal Beteiligungs und Servicegesellschaft mbH grew its position in SailPoint by 86.0% during the third quarter. Universal Beteiligungs und Servicegesellschaft mbH now owns 167,021 shares of the company's stock worth $3,688,000 after buying an additional 77,237 shares in the last quarter. OFI Invest Asset Management increased its stake in SailPoint by 79.6% during the fourth quarter. OFI Invest Asset Management now owns 905,653 shares of the company's stock valued at $18,321,000 after acquiring an additional 401,431 shares during the period. Finally, Allspring Global Investments Holdings LLC raised its holdings in SailPoint by 22.1% in the 4th quarter. Allspring Global Investments Holdings LLC now owns 1,412,578 shares of the company's stock valued at $26,768,000 after acquiring an additional 255,720 shares in the last quarter.

About SailPoint

SailPoint Technologies Holdings, Inc NASDAQ: SAIL is a leading provider of enterprise identity governance solutions that enable organizations to manage and secure user access across on-premises, cloud and hybrid IT environments. Its software automates identity lifecycle management, access certifications, policy enforcement and privileged account governance, helping enterprises reduce security risks, maintain regulatory compliance and streamline IT operations. The company's flagship offerings include IdentityIQ, a comprehensive on-premises platform, and IdentityNow, a cloud-native identity governance-as-a-service solution.

Founded in 2005 by industry veterans Mark McClain and Kevin Cunningham, SailPoint is headquartered in Austin, Texas.

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