Cognyte Software (NASDAQ:CGNT) Shares Gap Down on Disappointing Earnings

Cognyte Software Ltd. (NASDAQ:CGNT)’s share price gapped down before the market opened on Wednesday following a dissappointing earnings announcement. The stock had previously closed at $11.62, but opened at $9.41. Cognyte Software shares last traded at $9.29, with a volume of 992,295 shares trading hands.

The company reported $0.03 earnings per share for the quarter, missing analysts’ consensus estimates of $0.10 by ($0.07). The firm had revenue of $105.49 million for the quarter, compared to the consensus estimate of $105.04 million. Cognyte Software had a negative net margin of 0.16% and a positive return on equity of 0.74%.

Wall Street Analysts Forecast Growth

Several analysts have commented on the company. Lake Street Capital assumed coverage on Cognyte Software in a research note on Monday, March 2nd. They set a “buy” rating and a $13.00 target price on the stock. Zacks Research cut Cognyte Software from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, May 26th. Finally, Wall Street Zen lowered Cognyte Software from a “strong-buy” rating to a “buy” rating in a research report on Saturday, May 9th. Two analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat, Cognyte Software has an average rating of “Hold” and an average target price of $13.50.

Hedge Funds Weigh In On Cognyte Software

Institutional investors and hedge funds have recently modified their holdings of the company. NewEdge Advisors LLC bought a new stake in shares of Cognyte Software in the first quarter worth $94,000. Bank of America Corp DE boosted its position in Cognyte Software by 37.7% in the first quarter. Bank of America Corp DE now owns 296,769 shares of the company’s stock worth $2,404,000 after purchasing an additional 81,254 shares during the last quarter. Entropy Technologies LP purchased a new position in Cognyte Software in the first quarter worth about $107,000. Sei Investments Co. grew its stake in shares of Cognyte Software by 22.0% during the 1st quarter. Sei Investments Co. now owns 158,907 shares of the company’s stock valued at $1,287,000 after purchasing an additional 28,638 shares during the period. Finally, Bastion Asset Management Inc. bought a new stake in shares of Cognyte Software during the 1st quarter valued at about $1,615,000. 72.92% of the stock is currently owned by hedge funds and other institutional investors.

Cognyte Software Stock Performance

The company’s 50-day moving average price is $9.51 and its 200 day moving average price is $8.88. The stock has a market cap of $678.91 million, a PE ratio of -929.00 and a beta of 1.64.

Cognyte Software Company Profile

Cognyte Software Ltd. is a global provider of security analytics solutions that was spun off from NICE Ltd. in early 2021. Headquartered in Israel, the company delivers specialized software and services designed to help government agencies, law enforcement organizations and critical infrastructure operators process and analyze large volumes of data for intelligence and investigative purposes.

The company’s core offerings include advanced analytics platforms that aggregate and visualize structured and unstructured data from diverse sources, such as communications metadata, open-source intelligence and sensor feeds.