Investors should keep a close eye on FireEye stock right now
FireEye, Inc. (NASDAQ:FEYE) is an American intelligence-led cybersecurity company that has been involved in the detection and prevention of major cyber-attacks. FEYE provides hardware, software, and services to investigate cybersecurity attacks, protect against malicious software, and analyze IT security risks. FireEye has over 10,000 customers across 103 countries. This afternoon, FEYE was last seen down 0.3% at $16.89.
FireEye stock has increased approximately 16% year-over-year and is up by 38% since bottoming at a record-low of $12.26 last September. However, shares of FEYE have grown 23% year-to-date and FireEye stock is currently down 34% since reaching multi-year high of $25.53 at the end of December. What's more, despite posting a first-quarter beat, the equity suffered a steep post-earnings bear gap on Aug. 6, plunging below the 200-day moving average for the first time since September 2020.
Mandiant, a segment of FireEye, announced on Aug.17 that Vikram Ramesh joined the company as Chief Marketing Officer. Ramesh will report to FireEye Mandiant President and Chief Operating Officer John Watters. In his role as CMO, Ramesh will oversee global marketing initiatives for Mandiant which are aimed at driving revenue growth, capturing market share, and expanding brand awareness. Ramesh has over 20 years of combined experience across security, cloud, networking, and software industries, including senior roles in product and marketing at Riverbed, Symphony Teleca, Virtana, and Hewlett Packard.
Taking a quick look at FireEye's earnings performance as another part of our fundamental analysis, the company beat earnings expectations on all four of its most recent earnings reports. FEYE beat expectations by a margin of $0.11 for Q2 of 2020, $0.04 for Q3 of 2020, $0.02 for Q4 of 2020, and $0.08 for Q1 of 2021. Analysts have FireEye's EPS pegged at $0.09 for its next earnings report due out in October.
FireEye stock does have the potential to be a solid a long-term investment. FEYE is still a long way out from reaching profitability, but continues to move closer to the green with their net income. Overall, with a price-sales ratio of 4.08, there is a solid argument that FEYE is undervalued at the moment.
Digging deeper, options look like a solid way to speculate on FEYE's next move. The security's Schaeffer's Volatility Index (SVI) of 37% stands higher than only 7% of readings from the past year. This means options traders are pricing in relatively low volatility expectations.