Check Point Software Technologies Ltd. (CHKP) Stock: A Tech Stock That’s Making Its Way For The Bottom

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Check Point Software Technologies Ltd. (CHKP) is trending down in the market today. The stock, one that is focused in the tech industry, is currently trading at $125.43 after heading down -0.58% so far in today’s session. As it relates to technology stocks, there are several aspects that have the potential to cause price movement in the market. News tends to be one of the biggest reasons for the movement. Here are the most recent trending headlines centered around CHKP:

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Mar-13-19 09:26AM The Zacks Analyst Blog Highlights: Check Point, Qualys, Fortinet, CyberArk Software and Palo Alto Networks
Mar-12-19 09:30AM 4 Cybersecurity Stocks to Buy as Enterprise Spending Jumps
Mar-11-19 09:00AM February 2019s Most Wanted Malware: Coinhive Quits While Still at the Top
Mar-08-19 12:01PM SYNNEX Corporation Named 2018 Check Point North American Distributor of the Year
Mar-07-19 09:00AM Ultrasound Machines Are Vulnerable to Hacking

Nonetheless, any time investors are making a decision with regard to investing, investors should look into much more than just news, this is especially the case in the ever changing technology sector. Here’s what’s going on with Check Point Software Technologies Ltd..

Returns That CHKP Investors Have Seen

Although a move toward the top in a single session, like what we’re seeing from Check Point Software Technologies Ltd. might lead to fear in some investors, a single session move by itself should not be the basis of a decision to, or not to, invest in a company. It is generally important to take a look at trends experienced by the stock beyond a single session. When it comes to CHKP, here are the trends that investors have experienced:

  • Past Seven Days – Over the last week, CHKP has seen a change in value in the amount of -0.17%.
  • Monthly – The monthly returns from Check Point Software Technologies Ltd. comes to 3.51%.
  • Quarterly – Throughout the past three months, the stock has generated a return that works out to 20.19%
  • Past 6 Months – Over the past 6 months, investors have seen a change of 6.19% from the stock.
  • Year To Date – Since the the first trading session of this year CHKP has produced a return on investment of 22.19%.
  • Full Year – Finally, throughout the past year, we’ve seen performance of 21.74% out of CHKP. Over this period of time, the stock has sold at a high of -2.09% and a low price of 33.78%.

Rations That Traders Should Think About

Digging into a few key ratios having to do with a stock generally gives investors an understanding of just how dangerous and/or rewarding a an investment option may be. Below are some of the most important ratios to look at when looking at CHKP.

Short Ratio – The short ratio is a measure of short interest. The higher this short ratio, the more investors have a belief that the price of the stock is headed for declines. Throughout the sector, strong technology stocks can come with a lower short ratio. On the other hand, we tend to see a lot of short squeezes in the sector. Nonetheless, with regard to Check Point Software Technologies Ltd., it’s short ratio is 8.61.

Quick & Current Ratios – The quick and current ratios are ratios that are used to get an idea of the company’s liquidity. Basically, they measure whether or not a company can pay its debts when they mature based on quick assets or current assets. Because in tech, many companies rely on the continuation of support from investors as they work to bring new technologies to market, these ratios can look damning. Nonetheless, quite a few gems in the tech industry come with positive quick and current ratios. As far as CHKP, the quick and current ratios work out to 1.70 and 1.70 respectively.  

Book To Share Value – The book to share value compares the the price of shares to the book value of assets owned by the company. In this case, that ratio works out to 24.27.

Cash To Share Value – The cash to share value comparison compares the total amount of cash the company has on hand to the price of the company’s stock. In this case, the cash to share value is 11.38.

Is Big Money Interested In Check Point Software Technologies Ltd.

Humans that are into investing seem to be infatuated with the term “Smart money follows big money.” It makes sense. Big money became big money by making smart decisions in the market. So, by following the moves of big money institutions and insiders, we can get a glimpse of what market pros think about a stock. When it comes to big money interest in CHKP, here’s what we’re seeing:

  • Institutional Investors – As it stands now, institutions own 76.50% of the company. On the other hand, it’s important to note that institutional ownership has moved in the amount of 0.55% throughout the past 3 months.
  • Insider Holdings – When it comes to insiders, insiders of the company currently hold 24.80% of Check Point Software Technologies Ltd.. Insider ownership of the company has seen a move of 0.00% over the past quarter.

How Analysts Feel About Check Point Software Technologies Ltd.

Although it’s rarely a good idea to avoid doing your due diligence and blindly following the thoughts of analysts, it is a smart idea to use their thoughts when validating your own opinions when it comes to making investment decisions in the technology sector. Below you’ll find the recent moves that we have seen from analysts with regard to CHKP.

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Dec-11-18 Resumed Guggenheim Neutral $112
Oct-19-18 Initiated Wedbush Outperform $140
Oct-18-18 Resumed Robert W. Baird Neutral
Oct-12-18 Downgrade OTR Global Positive → Negative
Jul-26-18 Reiterated Stifel Hold $95 → $112

What We’ve Seen In Financial Results

At the moment, analysts are expecting that throughout the full year, earnings per diluted share will come in at $6.49. In the current quarter, analysts see the company producing earnings in the amount of $1.31. Over the last 5 years, CHKP has generated revenue in the amount of $6.60% with earnings coming in at 9.50%. On a quarter over quarter basis, earnings have seen movement of 3.90% and revenue has seen movement of 3.90%.

Looking At Share Counts

Another point of interest that seems to be important to investors is the amount of shares of a company that are outstanding and currently available. At the moment, there are 153.93M shares of Check Point Software Technologies Ltd. outstanding. Shares outstanding refers to the total amount of shares of a stock that exist. As far as the float goes, or the amount of shares that are actually available on the retail market, CHKP has a float of 112.42M.

Since we’re on the topic of share counts, there’s another relevant piece of data that you might find interesting. That would be the short percentage of the float. Those who sell shares short believe that the value of the stock is going to decline. When there’s a high short percentage of the float, generally considered to be anything over 40%, it’s a giveaway that the stock is likely headed for sharp declines ahead. Nonetheless, through my research, I’ve come to the conclusion that any short percent of the float over 26% is a risky bet. When it comes to CHKP, the short percent of the float is 7.21%.

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