Proofpoint Inc. (NASDAQ:PFPT) Relative Strength Index (RSI) is 61.75, with weekly volatility at 2.84% and ATR at 3.76. The PFPT stock’s 52-week price range has touched low of $83.81 and a $133.58 high. Intraday shares traded counted 0.76 million, which was -5.88% lower than its 30-day average trading volume of 715.29K. Its shares traded higher over the last trading session, gaining 0.31% on 07/30/20. The shares fell to a low of $121.02 before closing at $125.27. PFPT’s previous close was $124.88 while the outstanding shares total 56.97M. The firm has a beta of 1.39.
Investors have identified the Software – Infrastructure company Proofpoint Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $7.27 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Proofpoint Inc. (PFPT) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For PFPT, the company has in raw cash 149.7 million on their books with 22.51 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on a decline. In terms of their assets, the company currently has 417469000 million total, with 627461000 million as their total liabilities.
PFPT were able to record 83.66 million as free cash flow during the third quarter of the year, this saw their quarterly net cash flow reduce by -27.8 million. In cash movements, the company had a total of 97.51 million as operating cash flow.
Potential earnings growth for Proofpoint Inc. (PFPT)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the third quarter of the year, Proofpoint Inc. recorded a total of 214.44 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 19.85% coming in sequential stages and their sales for the third quarter increasing by 5.36%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 57.83 million trying to sell their products during the last quarter, with the result yielding a gross income of 156.61 million. This allows shareholders to hold on to 56.97M with the revenue now reading -0.52 cents per share. This is a figure that is close to analyst’s prediction for their fourth quarter (-0.39 cents a share).
Having a look at the company’s valuation, the company is expected to record -0.72 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on PFPT sounds very interesting.
Is the stock of PFPT attractive?
In related news, EVP Indus. Solutions/Bus. Dev., Swaroop Bhagwat sold 1,500 shares of the company’s stock in a transaction that recorded on Jul 29. The sale was performed at an average price of 125.00, for a total value of 187,500. As the sale deal closes, the Chief Financial Officer, Auvil Paul R. III now sold 25,000 shares of the company’s stock, valued at 3,125,568. Also, EVP/GM Compliance/Digital Risk, Lee Robert Darren sold 1,300 shares of the company’s stock in a deal that was recorded on Jul 15. The shares were price at an average price of 117.24 per share, with a total market value of 152,414. Following this completion of acquisition, the Director, EVAN DANA L now holds 4,758 shares of the company’s stock, valued at 574,349. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.40%.
20 out of 27 analysts covering the stock have rated it a Buy, while 5 have maintained a Hold recommendation on Proofpoint Inc.. 1 analysts has assigned a Sell rating on the PFPT stock. The 12-month mean consensus price target for the company’s shares has been set at $140.80.