The latest earnings report from Tenable in April of 2023, showed the cybersecurity firm beating analyst expectations with strong revenue and earnings per share. In a quarter where analysts were expecting revenue of $187.14 million, Tenable reported $188.84 million, an increase of 18.5% when compared to the same quarter last year.
And while Tenable’s negative return on equity at 31.26% and negative net margin at 13.02% may appear as drawbacks, analysts believe the company is poised for future growth due to their high-quality cyber security services.
However, recent insider activity may be a cause for concern among investors. COO Mark C. Thurmond sold 4,002 shares of the stock in February of 2023 at an average price of $43.25, making for a total transaction amounting to $173,086.50. Director George Alex Tosheff also sold 6,000 shares of the firm’s stock in a transaction on February 7th at an average price of $42.48 for a total value of $254,880.
Insiders have sold over 76,282 shares in the last three months alone which totals at approximately $3,380,427 sale value.This has caused insiders to own only about 4.80% of the company’s current stock.
Tenable opened at $36.52 on Friday and currently has a market capitalization of $4.15 billion with outstanding market performance this year.
Despite some investors’ skepticism about insider selling and future market competitiveness that will surely arise as demand increases in cybersecurity services across industries due to increasing virtualization and cloud computing costs; it appears that Tenable will continue to maintain its leadership position as one of the most trusted names in cybersecurity by providing top quality internet security services that major companies worldwide vouch for.
Wedbush Raises Q2 2023 Earnings Estimates for Tenable Holdings Inc. (NASDAQ:TENB); Institutional Investors Show Continued Interest
Tenable Holdings, Inc. (NASDAQ:TENB) has recently received praise from Wedbush analysts who have lifted their Q2 2023 earnings per share estimates for the company. Their new estimate is that Tenable will earn ($0.14) per share for the quarter, an increase from their previous estimate of ($0.19). Additionally, Wedbush issued estimates for Tenable’s Q3 and Q4 earnings in 2023 as well as earnings projections up to FY2024. However, other research analysts suggest caution with recommendations ranging from a “neutral” rating to buy ratings.
Amidst these varied opinions, institutional investors and hedge funds continue to show interest in the company by modifying their holdings. Norges Bank and Jacobs Levy Equity Management Inc. bought new positions in Tenable worth $42,934,000 and $23,052,000 respectively while Voya Investment Management LLC and Vanguard Group Inc. raised their holdings by acquiring additional shares worth $56,075,000 and $572,138,000 respectively.
While this flurry of activity surrounding Tenable makes it difficult to ascertain the true position of the company among its competitors, stock watchers would do well to keep a close eye on any further movements in the coming months. As with any investment decision, prudence dictates that one does not rely on a singular analysis but seeks out more information before committing any capital.