FireEye (FEYE) Upgraded to “Hold” by Zacks Investment Research

FireEye (NASDAQ:FEYE) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a report released on Tuesday.

According to Zacks, “FireEye is a specialized provider of a security platform against cyber-attacks to enterprises and governments. We consider that a shift from product-based to subscription-based business model will have a negative impact on FireEye’s near-term results, however, that will lead to more stable revenues in the long-run. Also, there is an advantage to the shorter-length contracts as they generally generate higher margins compared with three-year contracts. Going ahead, a healthy security market, strong product line-up, deal wins and investment plans should boost results in the long run. Notably, estimates have been stable ahead of the company's q4 earnings release. Nonetheless, negative operating cash flow remains a major headwind for FireEye, which may hinder the execution of its growth plans. Intensifying competition and an uncertain macroeconomic environment add to its woes.”

Several other analysts also recently commented on the company. BidaskClub upgraded FireEye from a “strong sell” rating to a “sell” rating in a research note on Friday, January 5th. Wedbush reiterated a “neutral” rating and set a $14.00 target price on shares of FireEye in a research note on Tuesday, November 14th. Cowen reiterated a “hold” rating and set a $16.00 target price on shares of FireEye in a research note on Friday, November 3rd. Oppenheimer cut their target price on FireEye from $23.00 to $22.00 and set an “outperform” rating on the stock in a research note on Thursday, November 2nd. Finally, BMO Capital Markets dropped their price target on FireEye from $17.00 to $16.00 and set a “market perform” rating on the stock in a research note on Thursday, November 2nd. Two analysts have rated the stock with a sell rating, sixteen have issued a hold rating, twelve have assigned a buy rating and one has assigned a strong buy rating to the stock. The company presently has a consensus rating of “Hold” and a consensus price target of $17.22.

FireEye (FEYE) traded down $0.50 during trading on Tuesday, hitting $15.09. The company had a trading volume of 4,010,000 shares, compared to its average volume of 2,780,000. The company has a debt-to-equity ratio of 1.00, a current ratio of 1.99 and a quick ratio of 1.98. The stock has a market cap of $2,790.00, a P/E ratio of -9.09 and a beta of 0.52. FireEye has a 52 week low of $10.35 and a 52 week high of $18.00.

FireEye (NASDAQ:FEYE) last issued its earnings results on Wednesday, November 1st. The information security company reported ($0.04) EPS for the quarter, beating the consensus estimate of ($0.07) by $0.03. FireEye had a negative return on equity of 23.71% and a negative net margin of 39.29%. The business had revenue of $189.60 million for the quarter, compared to the consensus estimate of $186.41 million. During the same period last year, the business posted ($0.18) EPS. The company’s revenue was up 1.7% compared to the same quarter last year. research analysts predict that FireEye will post -1.07 earnings per share for the current fiscal year.

In other news, Director Ronald E. F. Codd sold 6,767 shares of the firm’s stock in a transaction dated Thursday, November 16th. The stock was sold at an average price of $13.57, for a total transaction of $91,828.19. Following the completion of the transaction, the director now owns 7,099 shares in the company, valued at $96,333.43. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Company insiders own 2.40% of the company’s stock.

A number of institutional investors and hedge funds have recently added to or reduced their stakes in FEYE. The Manufacturers Life Insurance Company raised its stake in FireEye by 30.0% in the second quarter. The Manufacturers Life Insurance Company now owns 6,623 shares of the information security company’s stock worth $101,000 after buying an additional 1,528 shares in the last quarter. Wealthcare Advisory Partners LLC acquired a new position in shares of FireEye in the third quarter worth about $129,000. Migdal Insurance & Financial Holdings Ltd. raised its position in shares of FireEye by 15.9% in the second quarter. Migdal Insurance & Financial Holdings Ltd. now owns 9,134 shares of the information security company’s stock worth $141,000 after acquiring an additional 1,252 shares during the period. Exane Derivatives acquired a new position in shares of FireEye in the third quarter worth about $168,000. Finally, K.J. Harrison & Partners Inc acquired a new position in shares of FireEye in the third quarter worth about $168,000. Institutional investors own 68.32% of the company’s stock.

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About FireEye

FireEye, Inc provides intelligence-based cybersecurity solutions that allow organizations to prepare for, prevent, respond to and remediate cyber-attacks. The Company offers various products, such as Threat Detection and Prevention Solutions, which include network security products (NX and Multi-vector Virtual Execution (MVX) Compute Node Series), e-mail security products (EX Series and e-mail threat prevention cloud (ETP), endpoint security products (HX Series) and content security products (FX Series); security management and orchestration products, which include Central Management System and FireEye Security Orchestrator, and forensics and investigation products, which include Threat Analytics Platform (TAP), Malware Analysis (AX Series) and Enterprise Forensics (PX Series and IA Series).

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