CyberArk Software is the IBD Stock Of The Day as the cybersecurity firm transitions to a new chief executive and CYBR stock returns to profitability. CyberArk is focused on the interoperability of identity security products amid corporate demand for broader security platforms.
"The race is on between CyberArk, Okta, (private equity firm) Thoma Bravo and Microsoft as each company develops or acquires the pieces to deliver a consolidated identity platform," Wolfe Research analyst Alex Zukin said in a report.
Thoma Bravo has acquired ForgeRock, Ping Identity Holdings, SailPoint Technology, Proofpoint, Sophos and Barracuda.
CYBR Stock Catalyst: New CEO
Meanwhile, CyberArk's former chief operating officer, Matt Cohen, took over as CEO from Udi Mokady on April 3. Mokady stayed on as executive chairman of the board of directors.
On the stock market today, CYBR stock rose 1.6% to close at 154.31. The cybersecurity stock has climbed 19% in 2023 vs. the Nasdaq's 32% gain.
Amid a consolidation pattern, CyberArk stock has forged an entry point of 159.60 at the top of a newly formed handle. Further, a move above Tuesday's high of 154.57 would offer an early entry.
Hackers often aim to compromise networks by targeting insiders — employees or management with administrative access to company computer systems. As a result, more companies are shifting cybersecurity budgets to "identity and access management" tools that address insider threats.
CyberArk Stock: 'Zero Trust' Security
Companies are focusing on a new cybersecurity concept called "zero trust." Unlike traditional security, zero trust deems users inside a network as untrustworthy — just like those outside it.
In a zero-trust setting, every user or device is always reverified, even if inside the enterprise firewall. It makes sure the person logging into a network is the real user. It also tests whether a device is compromised.
CyberArk "remains a constant PAM (privileged access management) leader, but its platform spans over workforce and customer access, end-point privilege security, secrets management, cloud privilege security and identity management," TD Cowen analyst Shaul Eyal said in a report.
CyberArk's "end-to-end identity security platform touches almost every potential identity-related use case in the marketplace."
CYBR stock recently found support at its 21-day exponential moving average. IBD research has found that the biggest stock market winners tend to find support at their 21-day line after a breakout for at least several weeks.
Cybersecurity Group Ranking
Also, one bullish signal is that the IBD Computer-Software Security group ranks No. 38 out of 197 industry groups that IBD tracks. Other top-performing cybersecurity stocks include Palo Alto Networks and Fortinet.
In the March quarter, CyberArk reported a loss of 17 cents per share, narrowing from a 30-cent loss a year earlier. Revenue rose 27% to $161.7 million.
In fiscal 2023, analysts expect CYBR stock to swing to a full-year profit of 28 cents a share from a 44-cent loss the previous year. Revenue is seen climbing 23% to $730.1 million.
At an investor day in May, CyberArk raised its guidance for subscription-based annual recurring revenue in 2025 by 10% to $1.1 billion. It set a goal of $1.6 billion in ARR by 2027.
"The company's vision (is) to be an overall identity security platform," William Blair analyst Jonathan Ho said in a report. "We believe this starts with a broader and deeper set of products, coinciding with marketing efforts to shift perception of the company, and strong sales execution to capitalize on cross-sell and new customer acquisition opportunities."
CYBR Stock: Technical Ratings
Meanwhile, CYBR stock holds an IBD Composite Rating of 75 out of a best-possible 99, according to IBD Stock Checkup.
IBD's Composite Rating combines five separate proprietary ratings into one easy-to-use rating. The best growth stocks have a Composite Rating of 90 or better.
CyberArk stock has an Accumulation/Distribution Rating of A-. That rating analyzes price and volume changes in a stock over the past 13 weeks of trading. Its current rating indicates more funds are buying than selling.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.
