Proofpoint (PFPT) Shares Gap Down Following Analyst Downgrade

Proofpoint Inc (NASDAQ:PFPT) shares gapped down prior to trading on Monday after Morgan Stanley lowered their price target on the stock from $134.00 to $110.00. The stock had previously closed at $88.12, but opened at $83.55. Morgan Stanley currently has a buy rating on the stock. Proofpoint shares last traded at $89.58, with a volume of 1422722 shares trading hands.

A number of other research analysts have also commented on PFPT. Wedbush restated an “outperform” rating and issued a $136.00 target price on shares of Proofpoint in a research note on Wednesday, July 11th. Zacks Investment Research lowered Proofpoint from a “hold” rating to a “sell” rating in a research note on Wednesday, July 11th. BidaskClub upgraded Proofpoint from a “hold” rating to a “buy” rating in a research note on Friday, July 20th. Royal Bank of Canada reiterated a “buy” rating and set a $140.00 price objective on shares of Proofpoint in a research note on Friday, July 27th. Finally, Monness Crespi & Hardt increased their price objective on Proofpoint from $135.00 to $140.00 and gave the stock a “buy” rating in a research note on Friday, July 27th. Six analysts have rated the stock with a hold rating and twenty-one have given a buy rating to the company’s stock. The stock presently has an average rating of “Buy” and a consensus target price of $125.05.

In other news, EVP David Knight sold 1,500 shares of the firm’s stock in a transaction on Thursday, August 2nd. The stock was sold at an average price of $114.68, for a total value of $172,020.00. Following the completion of the sale, the executive vice president now directly owns 17,694 shares in the company, valued at $2,029,147.92. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, CEO Gary Steele sold 50,000 shares of the firm’s stock in a transaction on Wednesday, August 8th. The shares were sold at an average price of $117.62, for a total value of $5,881,000.00. Following the completion of the sale, the chief executive officer now owns 121,589 shares of the company’s stock, valued at $14,301,298.18. The disclosure for this sale can be found here. Insiders have sold 248,560 shares of company stock valued at $22,667,422 over the last quarter. Corporate insiders own 3.37% of the company’s stock.



Several large investors have recently made changes to their positions in PFPT. Jennison Associates LLC increased its stake in shares of Proofpoint by 73.3% in the second quarter. Jennison Associates LLC now owns 575,544 shares of the software maker’s stock valued at $66,366,000 after buying an additional 243,380 shares in the last quarter. First Trust Advisors LP increased its stake in shares of Proofpoint by 111.0% in the third quarter. First Trust Advisors LP now owns 441,552 shares of the software maker’s stock valued at $46,950,000 after buying an additional 232,321 shares in the last quarter. Legal & General Group Plc increased its stake in shares of Proofpoint by 843.3% in the first quarter. Legal & General Group Plc now owns 194,464 shares of the software maker’s stock valued at $22,101,000 after buying an additional 173,849 shares in the last quarter. Millennium Management LLC increased its stake in shares of Proofpoint by 111.5% in the second quarter. Millennium Management LLC now owns 297,601 shares of the software maker’s stock valued at $34,316,000 after buying an additional 156,908 shares in the last quarter. Finally, Sumitomo Mitsui Asset Management Company LTD acquired a new stake in shares of Proofpoint in the third quarter valued at $15,117,000. Institutional investors own 95.54% of the company’s stock.

The company has a market cap of $4.28 billion, a price-to-earnings ratio of -68.36 and a beta of 1.25. The company has a debt-to-equity ratio of 0.69, a current ratio of 0.65 and a quick ratio of 0.65.

Proofpoint (NASDAQ:PFPT) last announced its earnings results on Thursday, October 25th. The software maker reported $0.40 earnings per share for the quarter, beating the Zacks’ consensus estimate of ($0.33) by $0.73. Proofpoint had a negative return on equity of 14.27% and a negative net margin of 14.08%. The company had revenue of $184.18 million during the quarter, compared to analyst estimates of $181.69 million. On average, equities research analysts forecast that Proofpoint Inc will post -1.18 EPS for the current fiscal year.

About Proofpoint (NASDAQ:PFPT)

Proofpoint, Inc operates as a security-as-a-service (SaaS) provider that enables large and mid-sized organizations to defend, protect, archive, and govern their sensitive data worldwide. It offers protection against advanced and targeted threats, including malicious attachments, polymorphic threats, zero-day exploits, user-transparent ‘drive-by' downloads, malicious Web links, hybrid threats, malware free attacks, and other penetration tactics.

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