Proofpoint, Inc. [NASDAQ: PFPT] shares went higher by 2.23% from its previous closing of $113.80, now trading at the price of $116.34, also adding 2.54 points. Is PFPT stock a buy or should you stay away?
The stock had a rather active trading session with the latest closing, by far recording 1.02 million contracts. Compared to the average trading volume of PFPT shares, the company saw a far better performance. Moreover, the stock has a 54.93M float and a -3.04% run over in the last seven days. PFPT share price has been hovering between $133.58 and $75.92 lately, and is definitely worthy of attention.
Proofpoint, Inc. [NASDAQ:PFPT]: Analyst Rating and Earnings
Its stock price has been found in the range of 75.92 to 133.58. This is compared to its latest closing price of $113.80.
Pay attention for this company’s financial results, of which the next release is scheduled to happen on Thu 30 Jan (In 94 Days).
Fundamental Analysis of Proofpoint, Inc. [PFPT]
Now let’s turn to look at profitability: with a current Operating Margin for Proofpoint, Inc. [PFPT] sitting at -14.10 and its Gross Margin at +69.88, this company’s Net Margin is now -15.00%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.
This company’s Return on Total Capital is -21.42, and its Return on Invested Capital has reached -17.30%. Its Return on Equity is -27.83, and its Return on Assets is -9.40. These metrics suggest that this Proofpoint, Inc. does a poor job of managing its assets, and likely won’t be
What about valuation? This company’s Enterprise Value to EBITDA is -223.45. The Enterprise Value to Sales for this firm is now 7.29. Proofpoint, Inc. [PFPT] has a Price to Book Ratio of 9.02, a Price to Cash Flow Ratio of 23.64.
Shifting the focus to workforce efficiency, Proofpoint, Inc. [PFPT] earns $274,395 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 4.65 and its Total Asset Turnover is 0.65. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 0.74 and its Current Ratio is 0.74. This company is not investing its short-term assets in an optimally efficient way, making it a riskier investment.
Proofpoint, Inc. [PFPT] has 56.07M shares outstanding, amounting to a total market cap of $6.52B. Its stock price has been found in the range of 75.92 to 133.58. At its current price, it has moved down by -12.91% from its 52-week high, and it has moved up 53.24% from its 52-week low.
This stock’s Beta value is currently 1.62, which indicates that it is 3.36% more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 41.38. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Proofpoint, Inc. [PFPT] a Reliable Buy?
Proofpoint, Inc. [PFPT] stock is presenting a less attractive investment opportunity when compared to similarly-sized corporations in the same industry. The price performance of these shares has not shown much promise, and the financial results that this company has recently delivered present a highly risky investment.