FireEye Inc Receives a Hold from Pacific Crest

By Ryan Adsit

Pacific Crest analyst Rob Owens reiterated a Hold rating on FireEye Inc (NASDAQ: FEYE) yesterday. The company’s shares closed yesterday at $11.01, close to its 52-week low of $10.87.

Owens noted:

“We see much work still to do. Sector Weight. Top-line achieves high end of guidance; profitability metrics outperform. Q3 results exceeded Street expectations for midrange performance, with billings of $215 million and revenue of $186 million both equal to the high end of guidance, representing modest y/y growth of 2% and 13%, respectively, as product decline remained a headwind. Profitability metrics were strong, as operating expenses fell almost $13 million q/q, resulting in 14 points of q/ q operating-margin expansion.”

According to TipRanks.com, Owens is a 5-star analyst with an average return of 14.6% and a 56.3% success rate. Owens covers the Technology sector, focusing on stocks such as Palo Alto Networks, Barracuda Networks, and SecureWorks Corp.

Currently, the analyst consensus on FireEye Inc is Hold and the average price target is $16.94, representing a 53.9% upside.

In a report released today, Barclays also maintained a Hold rating on the stock with a $16 price target.

Based on FireEye Inc’s latest earnings report from June 30, the company posted quarterly revenue of $175M and quarterly net profit of -$139.3M. In comparison, last year the company earned revenue of $165.6M and had a net profit of -$135.5M.

Based on the recent corporate insider activity of 29 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of FEYE in relation to earlier this year. Most recently, in May 2016, Kevin Mandia, the President of FEYE bought 27,600 shares for a total of $350,520.

FireEye, Inc. develops virtual machine-based security platform that provides real-time protection to enterprises and governments worldwide against the next generation of cyber attacks. The FireEye Threat Prevention Platform provides real-time, dynamic threat protection without the use of signatures to protect an organization across the primary threat vectors, including Web, email, and files and across the different stages of an attack life cycle. Its virtual machine-based security platform is a virtual execution engine, complemented by dynamic threat intelligence, to identify and block cyber attacks in real time. The company was founded by Ashar Aziz on February 18, 2004 and is headquartered in Milpitas, CA.