FireEye (FEYE) Lowered to “Sell” at Zacks Investment Research

FireEye (NASDAQ:FEYE) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued to clients and investors on Tuesday, January 2nd.

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. 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.”

A number of other analysts also recently weighed in on the stock. Standpoint Research downgraded shares of FireEye from a “buy” rating to a “hold” rating and set a $18.00 price target for the company. in a research report on Monday, September 18th. They noted that the move was a valuation call. Evercore ISI reissued a “buy” rating and set a $20.00 price target on shares of FireEye in a research report on Thursday, November 2nd. KeyCorp reissued a “hold” rating on shares of FireEye in a research report on Friday, October 27th. Vetr raised shares of FireEye from a “hold” rating to a “strong-buy” rating and set a $22.32 price target for the company in a research report on Monday, September 18th. Finally, Northland Securities set a $22.00 price target on shares of FireEye and gave the stock a “buy” rating in a research report on Thursday, October 12th. Three equities research analysts have rated the stock with a sell rating, fifteen have assigned a hold rating, twelve have given a buy rating and one has given a strong buy rating to the company. The stock currently has an average rating of “Hold” and an average target price of $17.22.

Shares of FireEye (NASDAQ FEYE) opened at $15.59 on Tuesday. The company has a debt-to-equity ratio of 1.00, a current ratio of 1.99 and a quick ratio of 1.98. FireEye has a 1 year low of $10.35 and a 1 year high of $18.00. The stock has a market cap of $2,880.00, a P/E ratio of -9.39 and a beta of 0.52.

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

In related news, Director Ronald E. F. Codd sold 6,767 shares of FireEye stock in a transaction dated Thursday, November 16th. The shares were sold at an average price of $13.57, for a total transaction of $91,828.19. Following the sale, the director now directly 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 through the SEC website. 2.40% of the stock is owned by insiders.

Several hedge funds and other institutional investors have recently modified their holdings of FEYE. ETF Managers Group LLC acquired a new position in FireEye during the second quarter worth about $43,372,000. Balyasny Asset Management LLC grew its holdings in FireEye by 213.3% during the second quarter. Balyasny Asset Management LLC now owns 2,902,297 shares of the information security company’s stock worth $44,144,000 after acquiring an additional 1,975,924 shares during the period. Vanguard Group Inc. grew its holdings in FireEye by 7.9% during the second quarter. Vanguard Group Inc. now owns 12,578,361 shares of the information security company’s stock worth $191,317,000 after acquiring an additional 917,967 shares during the period. Nationwide Fund Advisors acquired a new position in FireEye during the second quarter worth about $8,593,000. Finally, Crawford Lake Capital Management LLC acquired a new position in FireEye during the second quarter worth about $7,229,000. Institutional investors and hedge funds own 68.33% of the company’s stock.

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FireEye Company Profile

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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