Proofpoint Inc. (PFPT) Testing Investors’ Patience Right Now

GLBE Stock
GLBE Stock

The Vanguard Group, Inc. recently announced the acquisition of new stake in Proofpoint Inc. (NASDAQ:PFPT). The institutional investor has increased its shareholding in the Technology company by 0.52% to 5.25 million shares with purchase of 27039.0 shares. This fresh investment now brings its stake to 9.16% valued currently at $607.28 million. In addition, BlackRock Fund Advisors raised its holdings by 0.25 million to 2.74 million shares. And Wasatch Advisors, Inc. has lifted its position by 9.56% or 0.16 million shares – to 1.85 million shares.

With over 1.06 million Proofpoint Inc. (PFPT) shares trading Tuesday and a closing price of $115.39 on the day, the dollar volume was approximately $122.79 million. The shares have shown a positive weekly performance of 1.88% and its price on 09/01/20 gained nearly 5.22%. Currently, there are 57.37M common shares owned by the public and among those 56.79M shares have been available to trade.

An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 27 analysts who have offered their price forecasts for PFPT have a consensus price objective of $144.17. The analysts have set the share’s price value over the next 12 months at a high of $174.00 and a low of $123.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Proofpoint Inc. stock is 1.80 for the next 12 months. The average price target is 19.96% above its last price level and an upside to the estimated low will see the stock gain 6.19% over that period. But an upside of 33.68% will see the stock hit the forecast high price target while mean target price for the stock is $147.50.

Insiders at the company have transacted a total of 196 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 82 of these insider trades were purchases, accounting for 388,479 shares. Insider sales of the common stock occurred on 114 occasions, with total insider shares sold totaling 471,569 shares.

The top 3 mutual fund holders in Proofpoint Inc. are T Rowe Price New Horizons Fund, Vanguard Total Stock Market Index, and Vanguard Small Cap Index Fund. T Rowe Price New Horizons Fund owns 2.49 million shares of the company’s stock, all valued at over $287.92 million. The company sold -0.12 million shares recently to bring their total holdings to about 4.34% of the shares outstanding. Vanguard Total Stock Market Index sold 7114.0 shares to see its total holdings shrink to 1.63 million shares valued at over $188.65 million and representing 2.85% of the shares outstanding. Vanguard Small Cap Index Fund sold 10300.0 shares to bring its total holdings to over 1.42 million shares at a value of $164.8 million. Vanguard Small Cap Index Fund now owns shares totaling to 2.49% of the shares outstanding.

Shares of Proofpoint Inc. (NASDAQ: PFPT) opened at $111.38, up $1.71 from a prior closing price of $109.67. However, the script later closed the day at $115.39, up 5.22%. The company’s stock has a 5-day price change of 1.88% and -1.08% over the past three months. PFPT shares are trading 0.53% year to date (YTD), with the 12-month market performance down to -1.39% lower. It has a 12-month low price of $83.81 and touched a high of $133.58 over the same period. Currently, 1.06 million shares have been traded, compared to an average intraday trading volume of 737.47K shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 5.09%, 1.69%, and 0.00% respectively.

Institutional ownership of Proofpoint Inc. (NASDAQ: PFPT) shares accounts for 97.00% of the company’s 57.37M shares outstanding. Mutual fund holders own 36.69%, while other institutional holders and individual stakeholders account for 59.03% and 12.52% respectively.

It has a market capitalization of $6.66B and a beta (3y monthly) value of 1.27. The earnings-per-share (ttm) stands at -$3.00. Price movements for the stock have been influenced by the stock’s volatility, which stands at 3.19% over the week and 2.79% over the month.

Analysts forecast that Proofpoint Inc. (PFPT) will achieve an EPS of $0.39 for the current quarter, $0.39 for the next quarter and $2.02 for 2021. The lowest estimate earnings-per-share for the quarter is $0.38 while analysts give the company a high EPS estimate of $0.44. Comparatively, EPS for the current quarter was $0.49 a year ago. Earnings per share for the fiscal year are expected to decrease by -17.00%, and 20.76% over the next financial year. EPS should grow at an annualized rate of 22.00% over the next five years, compared to -7.70% over the past 5-year period.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 27 brokerage firm advisors rate Proofpoint Inc. (PFPT) as a “Strong Buy” at a consensus score of 1.80. Specifically, 21 Wall Street analysts polled rate the stock as a buy, while 4 of the 27 advise that investors “hold,” and 1 rated it as a “Sell.”

Looking at the support for the PFPT, a number of firms have released research notes about the stock. Wedbush stated their Outperform rating for the stock in a research note on August 26, 2020, with the firm’s price target at $135. Morgan Stanley coverage for the Proofpoint Inc. (PFPT) stock in a research note released on August 19, 2020 offered a Overweight rating with a price target of $134. BTIG Research was of a view on March 27, 2020 that the stock is Buy, while Goldman gave the stock Neutral rating on March 25, 2020, issuing a price target of $111. First Analysis Sec on their part issued Strong Buy rating on March 04, 2020.


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