The Check Point Software Technologies Ltd. (CHKP) shares are trading at lower $123.02 and the avg recommendation for the stock is Moderate Buy. while the current analyst price target stands at $110.00.
To add more color to this target, the company’s high over the last year is $125.53 and the low is $80.06. Over the last 52 weeks, CHKP is down -2.00% while the S&P 500 is up 0.57%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, CHKP reported a profit of $437.12 million. Check Point Software Technologies Ltd. also saw revenues increase to $488.12 million. In addition, CHKP has free cash flow of $596.85 million as of 06-2019. The company’s EBITDA came in at $217.96 million which compares well with its peers.
CHKP booked profit margins of 41.00%, its Return on Equity (ROE) is 23.10%, and its Return on Assets is 14.50%. All told, it is clear that, CHKP needs to be on your watchlist.
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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. CHKP has a short ratio of 11.37 and outstanding shares of 144.20M.
CHKP has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 1.0 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at 5.52. Check Point Software Technologies Ltd. CHKP also noted assets of $5.75 billion at the end of the last quarter. Investors should also keep an eye on sector updates as CHKP has historically followed its peers on positive news.
All told, Check Point Software Technologies Ltd. CHKP has strung together solid data and demonstrated underlying fundamentals. At its current valuation, CHKP represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.
Check Point Software Technologies Ltd. CHKP is now commanding a market cap of 17.02B and a float of 108.83M. CHKP is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of CHKP stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in CHKP, either long or short, and we have not been compensated for this article.