AI Stock Analysis: Is Now the Time to Buy CYBR?

November 14, 12:36 am

Cyberark Software is a leading global cybersecurity company specializing in privileged access management. The company's primary focus is on protecting data, infrastructure, and assets by managing and securing user privileges and access. Cyberark is a frontrunner in preventing cyber attacks that exploit privileged accounts to strike at the core of an organization's network. With technologies designed to address advanced insider threats and attacks, Cyberark serves clients across various industries, including financial services, healthcare, and government sectors.

Price & AI Score for CYBR.

Fundamental Analysis

In the most recent quarter, Cyberark Software reported revenue of $225 million, matching the previous quarter. Notably, this represents a year-over-year increase of 17.50%, highlighting strong and sustained growth. Revenue growth is a critical metric for evaluating a company's ability to expand its market share and enhance profitability.

The company's net income for the latest quarter stood at $13 million, mirroring the previous quarter's figure. On a yearly basis, this reflects an increase of 11.54%, showcasing effective cost management and operational efficiency. Net income growth is a pivotal indicator of a firm's overall financial health and its capacity to generate profit.

Cyberark also reported an EBITDA of $0 for the last quarter, which represents a 100% increase from the previous quarter and year-over-year. Although the EBITDA figure can be seen as low, the 100% growth indicates positive operational performance improvement. Tracking EBITDA growth is essential as it reflects the company's core profitability and financial performance, excluding the effects of capital structure, taxes, and other factors.

Technical Analysis

Today's stock price for Cyberark Software is $291.61. While this represents a minor decrease of 0.97% compared to a month ago, the stock price has increased by a notable 56.75% over the past year, indicating a strong positive long-term trend. Long-term price movements are crucial for investors aiming for sustained growth and potential capital appreciation.

The current SMA10 (Simple Moving Average over 10 days) is 293.32, slightly higher than the previous SMA10 of 291.57. An increasing SMA10 suggests potential upward price movement, which is a positive signal of near-term bullish momentum.

However, the Relative Strength Index (RSI) stands remarkably high at 98.6, suggesting that the stock might be in an overbought state. While a bullish trend is indicated, a high RSI can also signal that a price correction could be imminent as investor activity could temporarily shift towards profit-taking.

Alternative Data Analysis

Examining alternative data sources, Cyberark Software has 98 open positions, a 14% increase over the last few months. This surge in job postings indicates organizational growth, a positive sign of potentially expanding operations and strengthening talent acquisition.

Cyberark's website sees approximately 890,000 visitors monthly, with stable traffic over recent months. Meanwhile, daily app downloads stand at 41, rising by 17% recently. Increasing app downloads may signal broader consumer engagement and potential growth in the customer base.

Regarding social media engagement, Cyberark has 17,000 followers on Twitter, a stable figure indicating consistent but unchanged online presence. Lastly, Cyberark’s AI score from AltIndex is 79, which is a clear buy signal based on a comprehensive analysis incorporating fundamental, technical, and alternative data.

Conclusion and Recommendation

Cyberark Software demonstrates a solid financial foundation with consistent revenue and net income growth, reflecting robust operational efficiency and market strengthening. The significant year-over-year revenue (17.50%) and net income growth (11.54%) are commendable, and the 100% increase in EBITDA signals marked improvement in core profitability.

Technically, the stock showcases a substantial long-term upward trend with a 56.75% increase over the past year. While the RSI suggests potential bearish conditions due to overbought levels, the increasing SMA10 supports a continuing positive short-term trend.

Alternative data highlights positive organizational growth and engagement metrics, suggesting stable customer acquisition and potential expansion. With an AI score of 79, which signals a buy recommendation, all these factors collectively present Cyberark Software as an attractive investment opportunity.

Recommendation: Based on comprehensive analysis, Cyberark Software is well-positioned for growth. Despite the slight short-term stock price decrease and high RSI, the overall long-term trend and fundamental stability reinforce that Cyberark Software is a strong buy for investors seeking reliable growth in the cybersecurity domain.

Disclaimer: This article, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current. Visit CYBR AI Stock Analysis for a more up-to-date analysis.

Get More Insights

Sign up and get access to a personalized dashboard, deeper insights, AI stock picks, stock alerts, weekly newsletter and much more.