SentinelOne (NYSE:S) Shares Gap Down After Analyst Downgrade

Key Points

• SentinelOne shares fell sharply after Barclays cut its price target to $16 from $19 and kept an equal weight rating, contributing to a gap-down open and an 11.6% decline.
• The downgrade came amid a broader wave of mixed analyst sentiment, with several firms lowering targets or ratings while the consensus view still stands at Moderate Buy with a $19.47 average price target.
• Recent earnings showed better-than-expected EPS and 20.8% revenue growth, but investors were focused on weaker-than-expected guidance and management’s plan to cut about 8% of staff to shift spending toward AI and cloud investments.

Shares of SentinelOne, Inc. (NYSE:S - Get Free Report) gapped down prior to trading on Friday after Barclays lowered their price target on the stock from $19.00 to $16.00. The stock had previously closed at $18.02, but opened at $15.44. Barclays currently has an equal weight rating on the stock. SentinelOne shares last traded at $15.9970, with a volume of 7,476,235 shares trading hands.

Several other equities analysts have also recently issued reports on the company. DA Davidson reduced their target price on SentinelOne from $16.00 to $14.00 and set a "neutral" rating on the stock in a research note on Thursday, March 5th. Weiss Ratings raised SentinelOne from a "sell (e+)" rating to a "sell (d-)" rating in a research note on Tuesday. Canaccord Genuity Group reduced their target price on SentinelOne from $23.00 to $17.00 and set a "buy" rating on the stock in a research note on Friday, March 13th. Raymond James Financial cut SentinelOne from a "strong-buy" rating to a "market perform" rating and set a $18.00 target price on the stock. in a research note on Friday. Finally, Wells Fargo & Company boosted their price target on shares of SentinelOne from $14.00 to $16.00 and gave the company an "equal weight" rating in a research report on Thursday, May 21st. Seventeen investment analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, SentinelOne has a consensus rating of "Moderate Buy" and a consensus price target of $19.47.

Insider Transactions at SentinelOne

In other news, CFO Barry L. Padgett sold 32,221 shares of SentinelOne stock in a transaction dated Wednesday, March 25th. The stock was sold at an average price of $13.37, for a total transaction of $430,794.77. Following the transaction, the chief financial officer directly owned 643,650 shares of the company's stock, valued at $8,605,600.50. The trade was a 4.77% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Ana G. Pinczuk sold 32,396 shares of SentinelOne stock in a transaction dated Wednesday, March 25th. The shares were sold at an average price of $13.37, for a total value of $433,134.52. Following the transaction, the insider directly owned 603,650 shares in the company, valued at approximately $8,070,800.50. The trade was a 5.09% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 527,586 shares of company stock valued at $7,638,793. Company insiders own 4.27% of the company's stock.

SentinelOne News Summary

Here are the key news stories impacting SentinelOne this week:

• Positive Sentiment: SentinelOne posted Q1 EPS of $0.04, beating estimates, and revenue rose 20.8% year over year to $276.66 million, showing continued demand for its cybersecurity platform.
• Positive Sentiment: Several firms remained constructive on the stock, including Wedbush and Rosenblatt with $20 price targets, and Bank of America upgraded SentinelOne to buy from neutral.
• Neutral Sentiment: The company highlighted strong ARR growth and said emerging solutions now account for about half of total ARR, reinforcing the long-term AI and platform story. SentinelOne Announces First Quarter Fiscal Year 2027 Financial Results
• Neutral Sentiment: Management is trimming about 8% of full-time staff to redirect spending toward AI, data, and cloud investments, which may help efficiency over time but also signals near-term restructuring costs. SentinelOne provides tepid quarterly forecast, to cut 8% jobs
• Negative Sentiment: Investors were disappointed by guidance that came in below expectations for the current quarter and only roughly in line for the full year, suggesting slower growth momentum ahead.
• Negative Sentiment: Barclays cut its price target on SentinelOne to $16 from $19 and kept an equal weight rating, while the stock trades near that level, reinforcing a more cautious stance.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the company. Vanguard Group Inc. lifted its stake in shares of SentinelOne by 1.4% during the 4th quarter. Vanguard Group Inc. now owns 36,532,555 shares of the company's stock valued at $547,988,000 after buying an additional 520,142 shares in the last quarter. First Trust Advisors LP lifted its stake in shares of SentinelOne by 38.1% during the 4th quarter. First Trust Advisors LP now owns 13,146,797 shares of the company's stock valued at $197,202,000 after buying an additional 3,624,707 shares in the last quarter. Legal & General Group Plc lifted its stake in shares of SentinelOne by 4.2% during the 4th quarter. Legal & General Group Plc now owns 8,551,878 shares of the company's stock valued at $128,278,000 after buying an additional 346,014 shares in the last quarter. AQR Capital Management LLC lifted its stake in shares of SentinelOne by 93.4% during the 4th quarter. AQR Capital Management LLC now owns 8,212,127 shares of the company's stock valued at $123,182,000 after buying an additional 3,965,519 shares in the last quarter. Finally, Caprock Group LLC lifted its stake in shares of SentinelOne by 2,275.2% during the 4th quarter. Caprock Group LLC now owns 7,749,446 shares of the company's stock valued at $116,242,000 after buying an additional 7,423,177 shares in the last quarter. Hedge funds and other institutional investors own 90.87% of the company's stock.

SentinelOne Trading Down 11.6%

The business's 50 day moving average is $14.91 and its two-hundred day moving average is $14.74. The company has a market cap of $5.42 billion, a PE ratio of -11.72 and a beta of 0.78.

SentinelOne (NYSE:S - Get Free Report) last posted its quarterly earnings results on Thursday, May 28th. The company reported $0.04 EPS for the quarter, topping analysts' consensus estimates of $0.02 by $0.02. SentinelOne had a negative return on equity of 15.04% and a negative net margin of 45.02%.The company had revenue of $276.66 million for the quarter, compared to analysts' expectations of $277.32 million. During the same period in the previous year, the firm earned $0.02 EPS. The firm's revenue was up 20.8% compared to the same quarter last year. SentinelOne has set its Q2 2027 guidance at 0.060-0.080 EPS and its FY 2027 guidance at 0.320-0.380 EPS. As a group, equities research analysts predict that SentinelOne, Inc. will post -0.6 EPS for the current fiscal year.

SentinelOne Company Profile

SentinelOne, Inc is a cybersecurity company specializing in AI-driven, autonomous endpoint protection. Founded in 2013 and headquartered in Mountain View, California, the firm developed its Singularity Platform to unify prevention, detection, response, and hunting across endpoints, cloud workloads, containers and IoT devices. SentinelOne's solutions leverage machine learning and behavioral analytics to identify threats in real time, automate remediation workflows and deliver forensics to support rapid incident response.

The company's flagship product suite includes endpoint security agents, cloud workload protection, identity threat detection and extended detection and response (XDR) capabilities.

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