FireEye, Inc. (FEYE): A Stock Investors Are Watching Closely Now

Analysts at Robert W. Baird, assumed coverage of FireEye, Inc. (NASDAQ:FEYE) with Outperform recommendation, according to their opinion released on October 18. Wedbush analysts again handed out a Neutral rating to FEYE stock but they lifted target price for the shares in a flash note to investors on October 08. The price target has been raised from $16 to $18. Wedbush, analysts launched coverage of FEYE stock with a Neutral rating, according to their flash note to investors on October 08. Analysts at Piper Jaffray issued an upgrade from Neutral to Overweight for the stock, in a research note that dated back to July 09.

The number of FireEye, Inc. (NASDAQ:FEYE) shares shorted has fallen by 2,554,608 shares. When looking at a stock for a potential investment, you want to know what percentage of Wall Street is betting against you. That’s what short interest tells you. The most recent short interest data has been released for the November 15th settlement date, which shows a decrease in total short interest for FEYE, to 20,676,057, a retreat of 11% since October 31st. Average daily volume for FireEye, Inc. at the November 15th settlement jumped to 7,205,506, as compared to 6,925,492 at the October 31st report. That brought days to cover to 2.86948, a 14.46% decrease from the 3.35437 days to cover recorded at the prior short interest data release. Looking at the experts’ opinion for the FEYE stock we see that the average analyst recommendations at 2.3 suggests buying these shares.

By watching the trading activity of corporate insiders, it will become easier to get a sense of FireEye, Inc. (NASDAQ:FEYE)’s prospects. The earliest insider trade took place on 11/16/2018. Reese Travis M. parted with a total of 3.09 thousand shares of company at average share price of $18.66. The total for the sales was set at $57.73 thousand. After this transaction, the President account balance stood at 888.67 thousand shares. The stock grew 8.31 percent since that insider sale. On 11/16/2018, Robbins William T, EVP, WW Sales, sold 6.19 thousand shares at a price per share of $18.66. This removed 115.45 thousand shares from the insider’s fortune and the stock saw a 8.31 percent rally in value since the news became public. This transaction left 228.26 thousand shares in the EVP, WW Sales account. On 11/16/2018, EVP, CFO & CAO Verdecanna Frank performed a sale transaction worth $9.96 thousand. This sale at $18.66 each has eliminated 0.53 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded 8.31 percent increase since the transaction was reported. The insider now is left with 372.14 thousand shares remaining in the account. King Alexa, who performs the EVP and General Counsel job, sold 4.83 thousand shares for $96.56 thousand. The disposal occurred on 11/07/2018 was priced at $20 per share. The share price soared 1.05 percent since the reporting date. King Alexa now left with a stake of 447.67 thousand FEYE stock worth $9.05 million after the insider selling.

FireEye, Inc. (FEYE) is expected to jump by -1.04 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $23-month high price target. This represents a whopping 13.81 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $20, which represents a return potential of -1.04 percent when compared to the closing price of the stock of $20.21 on Thursday, December 06. The lowest price target for the stock is $15 — slightly more than -25.78 percent from FEYE’s current share price.

The shares are currently floating around the first support level of $19.42. Below this, the next support is placed in the zone of $18.62. Till the time, the FEYE stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 64.13 on daily chart, which may remain a cause for concern. If the price breaks below $18.62 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $20.66 mark may result into a pull-back move towards $21.1 level.

FEYE shares accumulated 0.61 points or 3.11 percent on Thursday to $20.21 with a light trade volume of 4.847 million shares. After opening the session at $19.13, the shares went as high as $20.31 and as low as $19.07, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $3.95 billion and now has 195.44 million shares outstanding. FireEye, Inc. (FEYE) stock has gained 8.25 percent of market value in 21 trading days.

FEYE stock has a trailing 3-year beta of 0.27, offering the possibility of a lower rate of return, but also posing less risk. The portion of a company’s profit allocated to each outstanding share of common stock was -$1.45 a share in the trailing twelve months. The stock’s value has surged 42.32 percent year to date (YTD) against a rise of 46.87 percent in 12 month’s time. The company’s shares still trade -1.94 percent away from its 1-year high of $20.61 and 49.48 percent up from 52-week low of $13.52. The average consensus rating on the company is 2.3, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.

Shares of FireEye, Inc. (FEYE) are trading at a P/E ratio of 0 times earnings reported for the past 12 months. The industry FEYE operates in has an average P/E of 39.5. Its P/E ratio went as low as 0X and as high as 0 over the 5-year span. Further, it is sporting a 4.84 on the Price-to-Sales ratio. Compare this with the industry average P/S of 7458.41. 66.7 percent is the gross profit margin for FireEye, Inc. and operating margin sits at -25.9 percent. Along with this, the net profit margin is -33.3 percent.

FEYE will be showing off its Q4 earnings on February 13. Analysts are forecasting revenue to climb 7.2 percent to $217M in the next fiscal quarter, while earnings are seen soaring by nearly 400 percent to $0.05 per share. History has shown that shares in FireEye, Inc. have gone down on 13 different earnings reaction days and are predicted to add 0.1 percent when the company reports upcoming earnings. In last reported earnings results, it earned $0.06 per share, better than the $0.02, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $212M, better than the $208M analysts expected. Earnings are estimated to increase by 41.9 percent this year, 141.03 percent next year and continue to increase by 0 percent annually for the next 5 years.