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

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Zacks Investment Research upgraded shares of FireEye (NASDAQ:FEYE) from a hold rating to a buy rating in a report issued on Friday morning. Zacks Investment Research currently has $19.00 price objective on the information security company’s stock.

According to Zacks, “FireEye is benefiting from its diversified product portfolio and increasing clientele. The company’s shifting of the business model to a subscription-based one, are apparently paying off. FireEye is gaining customer accounts and increasing penetration of existing customers, which is driving revenue growth. Strong adoption of Helix platform is a key driver. Management notes that the shift toward virtual, cloud and hybrid from appliance-based products is improving the mix of recurring subscriptions and support, which will aid the company’s long-term growth. Estimates have been stable ahead of the company’s Q4 earnings release. The company has positive record of earnings surprises in recent quarters. However, shorter-length contracts remain a concern, which, despite generating higher margins compared with three-year contracts, adversely impact near-term top-line growth. Shares have underperformed the industry in the past one year.”

A number of other research firms also recently weighed in on FEYE. Morgan Stanley downgraded shares of FireEye from an overweight rating to an equal weight rating and set a $21.00 price target for the company. in a research report on Thursday, December 13th. Piper Jaffray Companies raised their price target on shares of FireEye to $22.00 and gave the stock an overweight rating in a research report on Wednesday, October 31st. BMO Capital Markets raised their price target on shares of FireEye from $17.00 to $18.00 and gave the stock a market perform rating in a research report on Wednesday, October 31st. Deutsche Bank raised their price target on shares of FireEye from $18.00 to $20.00 and gave the stock a hold rating in a research report on Wednesday, October 31st. Finally, Citigroup raised their price target on shares of FireEye from $17.00 to $18.00 and gave the stock a neutral rating in a research report on Wednesday, October 31st. Nine equities research analysts have rated the stock with a hold rating and nine have issued a buy rating to the company’s stock. The stock presently has a consensus rating of Buy and an average target price of $20.13.

FEYE stock opened at $16.78 on Friday. FireEye has a twelve month low of $13.60 and a twelve month high of $20.61. The company has a debt-to-equity ratio of 1.46, a current ratio of 2.02 and a quick ratio of 2.01. The company has a market cap of $3.31 billion, a PE ratio of -15.39 and a beta of 0.51.

FireEye (NASDAQ:FEYE) last released its quarterly earnings results on Tuesday, October 30th. The information security company reported $0.06 earnings per share for the quarter, topping analysts’ consensus estimates of $0.02 by $0.04. FireEye had a negative net margin of 33.32% and a negative return on equity of 22.98%. The business had revenue of $211.65 million during the quarter, compared to the consensus estimate of $208.46 million. During the same quarter last year, the company earned ($0.04) earnings per share. The business’s quarterly revenue was up 7.2% compared to the same quarter last year. On average, analysts anticipate that FireEye will post -0.71 EPS for the current year.

In other FireEye news, EVP Alexa King sold 4,828 shares of FireEye stock in a transaction on Wednesday, November 7th. The shares were sold at an average price of $20.00, for a total value of $96,560.00. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, President Travis M. Reese sold 3,094 shares of FireEye stock in a transaction on Friday, November 16th. The stock was sold at an average price of $18.66, for a total transaction of $57,734.04. Following the completion of the transaction, the president now directly owns 711,966 shares of the company’s stock, valued at approximately $13,285,285.56. The disclosure for this sale can be found here. In the last ninety days, insiders sold 99,643 shares of company stock valued at $1,862,222. 2.40% of the stock is currently owned by corporate insiders.

A number of institutional investors have recently added to or reduced their stakes in FEYE. Point72 Asset Management L.P. acquired a new position in FireEye in the third quarter worth $75,475,000. Fisher Asset Management LLC lifted its stake in FireEye by 41.4% in the third quarter. Fisher Asset Management LLC now owns 3,212,043 shares of the information security company’s stock valued at $54,605,000 after buying an additional 939,932 shares during the last quarter. Millennium Management LLC lifted its stake in FireEye by 125.8% in the second quarter. Millennium Management LLC now owns 1,509,436 shares of the information security company’s stock valued at $23,230,000 after buying an additional 841,080 shares during the last quarter. Vanguard Group Inc lifted its stake in FireEye by 3.7% in the third quarter. Vanguard Group Inc now owns 16,137,591 shares of the information security company’s stock valued at $274,339,000 after buying an additional 579,676 shares during the last quarter. Finally, Vanguard Group Inc. lifted its stake in FireEye by 3.7% in the third quarter. Vanguard Group Inc. now owns 16,137,591 shares of the information security company’s stock valued at $274,339,000 after buying an additional 579,676 shares during the last quarter. 73.93% of the stock is owned by hedge funds and other institutional investors.

About FireEye

FireEye, Inc provides cybersecurity solutions that allow organizations to prepare for, prevent, respond to, and remediate cyber-attacks. It offers vector-specific appliance, virtual appliance, and cloud-based solutions to detect and block known and unknown cyber-attacks. The company provides threat detection and prevention solutions, including network security products, email security solutions, and endpoint security solutions.

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