Cognyte Software (NASDAQ:CGNT) Stock Price Down 5.6% – Should You Sell?

Cognyte Software Ltd. (NASDAQ:CGNT)’s share price dropped 5.6% on Wednesday . The stock traded as low as $8.00 and last traded at $8.14. Approximately 268,332 shares traded hands during mid-day trading, a decline of 13% from the average daily volume of 307,329 shares. The stock had previously closed at $8.62.

Analyst Upgrades and Downgrades

A number of equities research analysts have commented on CGNT shares. Needham & Company LLC reissued a “hold” rating on shares of Cognyte Software in a report on Tuesday, September 10th. StockNews.com raised Cognyte Software from a “buy” rating to a “strong-buy” rating in a research note on Tuesday.

Cognyte Software Stock Performance

The business’s fifty day simple moving average is $7.23 and its 200-day simple moving average is $7.34. The company has a market capitalization of $593.09 million, a P/E ratio of -123.13 and a beta of 1.81.

Cognyte Software (NASDAQ:CGNT) last issued its earnings results on Tuesday, September 10th. The company reported $0.05 earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.02) by $0.07. Cognyte Software had a negative return on equity of 2.56% and a negative net margin of 1.35%. The firm had revenue of $84.40 million for the quarter, compared to analysts’ expectations of $83.69 million. During the same period in the previous year, the firm posted ($0.11) earnings per share. The business’s revenue was up 9.5% compared to the same quarter last year. As a group, analysts forecast that Cognyte Software Ltd. will post -0.28 EPS for the current year.

Cognyte Software announced that its Board of Directors has initiated a stock repurchase plan on Tuesday, November 12th that allows the company to buyback $20.00 million in outstanding shares. This buyback authorization allows the company to repurchase up to 3.7% of its stock through open market purchases. Stock buyback plans are often a sign that the company’s management believes its shares are undervalued.

Insider Buying and Selling

In related news, insider Topline Capital Management, Ll purchased 416,040 shares of the stock in a transaction that occurred on Thursday, September 12th. The stock was bought at an average cost of $6.30 per share, for a total transaction of $2,621,052.00. Following the completion of the transaction, the insider now directly owns 9,020,184 shares in the company, valued at $56,827,159.20. This represents a 4.84 % increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link.

Institutional Investors Weigh In On Cognyte Software

Several hedge funds and other institutional investors have recently modified their holdings of the business. Signaturefd LLC increased its stake in Cognyte Software by 91.4% in the second quarter. Signaturefd LLC now owns 3,311 shares of the company’s stock worth $25,000 after purchasing an additional 1,581 shares during the period. nVerses Capital LLC bought a new position in shares of Cognyte Software in the second quarter worth about $28,000. DT Investment Partners LLC purchased a new position in Cognyte Software in the 2nd quarter worth about $62,000. Magnetar Financial LLC bought a new stake in Cognyte Software during the 2nd quarter valued at about $117,000. Finally, State of New Jersey Common Pension Fund D boosted its position in Cognyte Software by 34.4% in the 3rd quarter. State of New Jersey Common Pension Fund D now owns 23,186 shares of the company’s stock valued at $157,000 after buying an additional 5,940 shares during the period. 72.92% of the stock is currently owned by hedge funds and other institutional investors.

Cognyte Software Company Profile

Cognyte Software Ltd. provides an investigative analytics software to governments and enterprises worldwide. Its Actionable Intelligence for a Safer World, an open software designed to help governments and enterprises accelerate and enhance the effectiveness of investigations. The company offers network intelligence analytics, threat intelligence analytics, decision intelligence analytics, and operational intelligence analytics solutions.