A Technical View of the Cognyte Software Ltd. (CGNT)


Cognyte Software Ltd. (NASDAQ:CGNT) saw a downside of -2.08% to $2.60 after subtracting -$0.05 on Wednesday. The 5-day average trading volume is 1,218,212 shares of the company’s common stock. It has gained $2.91 in the past week and touched a new high 1 time within the past 5 days. An average of 1,206,638 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 1,310,393.

CGNT’s 1-month performance is -15.34% or -$0.33 on its low of $2.31 reached on 12/19/22. The company’s shares have touched a 52-week low of $2.31 and high of $16.11, with the stock’s rally to the 52-week high happening on 01/03/22. YTD, CGNT has lost -83.09% or -$13.05 and has reached a new high 1 time. However, the current price is down -83.90% from the 52-week high price.

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Valuation Metrics

Moving on to other valuation ratios, the trailing price-to-sales (P/S) ratio is 0.45 while the price-to-book (PB) in the most recent quarter is 0.85.

Cognyte Software Ltd.’s quick ratio for the period ended July 30 was 1.20, with the current ratio over the same period at 1.30. In terms of profitability, the gross margin trailing 12 months is 67.90%. The firm’s gross profit as reported stood at $341.64 million against revenue of $474.04 million.

Earnings Surprise

For the quarterly period ending July 30 this year, Cognyte Software Ltd.’s cash and short-term investments amounted to $10.43 million against total debt of $33.85 million. Net income and sales went down compared to those figures reported in the previous quarter. Net income grew 195.37% to -$14.89 million, while revenue of $0.0 was 100.0% off the previous quarter. Analysts expected CGNT to announce -$0.17 per share in earnings in its latest quarter, but it posted -$0.04, representing a 76.50% surprise. EBITDA for the quarter stood at more than -$21.59 million. CGNT stock balance sheet for the quarter ending July 30 shows that total liabilities totaled 279.31 million, with total debt at $33.85 million.

Let’s look briefly at Cognyte Software Ltd. (CGNT) price momentum from a technical analysis perspective. The 9-day relative strength index as at close on 27 December was 44.70% to suggest the stock is trending Neutral, with historical volatility in this time period at 94.71%.

The stock’s 5-day moving average is $2.74, reflecting a -1.50% or -$0.04 change from its current price. CGNT is currently trading -8.71% above its 20-day SMA, -45.87% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 by -4.03% and SMA200 by-75.10%.

Stochastic %K and %D was 60.88% and 65.70% and the average true range (ATR) pointed at 0.21. The RSI (14) points at 44.42%, while the 14-day stochastic is at 52.07% with the period’s ATR at 0.22. The stock’s 9-day MACD Oscillator is pointing at 0.05 and 0.04 on the 14-day charts.

Analyst Ratings

In the most recent analyst report for Cognyte Software Ltd. (NASDAQ: CGNT), Stifel downgraded it to a Hold rating. They previously had a Buy rating on the stock. Analysts offering their rating for CGNT stock have a consensus rating for the stock as Hold. Currently, 0 brokerage advisors rate CGNT as a “sell,”, while 4 advise that investors “Hold.” 0 analysts have rated the stock as underweight. 0 rates the stock as overweight while 1 have offered a “buy” rating.

What is CGNT’s price target for the next 12 months?

Analysts have a consensus price target ranging from a low of $3.00 and a high of $10.00, with their median price target at $3.00. Looking at these predictions, the average price target given by analysts is for Cognyte Software Ltd. (CGNT) stock is $5.33.


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