Check Point Software Technologies Ltd. (NASDAQ:CHKP) finished Friday with an addition of $0.75 to close at $130.79, an upside of 0.58 percent. An average of 817,440 shares of common stock have been traded in the last five days. There was a gain of $3.61 in the past week, and it reached a new high 14 times over the past 12 months. The last 20 days have seen an average of 889,165 shares traded, while the 50-day average volume stands at 923,110.
CHKP stock has increased by 2.52% in the last month. The company shares reached their 1-month lowest point of $124.82 on 07/17/23. With the stock rallying to its 52-week high on 04/12/23, shares of the company touched a low of $107.54 and a high of $135.93 in 52 weeks. It has reached a new high 8 times so far this year and achieved 3.67% or $4.63 in price. In spite of this, the price is down -3.78% from the 52-week high.
Valuation Metrics
Check Point Software Technologies Ltd. (CHKP) has a trailing price-to-earnings (P/E) ratio of 18.88. The stock’s beta is 0.66. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 6.70, the price-to-book (PB) ratio at 5.46, and the price-to-cash flow ratio at 13.70.
Financial Health
The quick ratio of Check Point Software Technologies Ltd. for the three months ended June 29 was 1.20, and the current ratio was 1.20, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.00 and a total debt to equity ratio of 0.00 for the quarter ending June 29. Check Point Software Technologies Ltd.’s EBITDA margin for the year ending June 29 is 39.51%, while its operating margin for the same period stands at 37.80%. Its gross profit as reported stood at $2.04 billion compared to revenue of $2.33 billion.
For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Check Point Software Technologies Ltd.’s return on assets was 15.10%.
Earnings Surprise
For the three-month period that ended June 29, Check Point Software Technologies Ltd. had $1.01 billion in cash. In the quarter under review, the net income was up than the previous quarter. The company posted a net income of $796.9 million in the quarter, while revenues were shrunk -2.35%. The analyst consensus anticipated Check Point Software Technologies Ltd.’s latest quarter earnings to come in at $1.89 per share, but it turned out to be $2, a 5.80% surprise. For the quarter, EBITDA amounted to $229.6 million.
Technical Picture
From a technical analysis perspective, let’s take a brief look at Check Point Software Technologies Ltd. (CHKP) price momentum. RSI 9-day as of the close on 11 August was 58.32%, suggesting the stock is Neutral, with historical volatility in this time frame at 26.01%.
As of today, CHKP’s price is $128.08 +2.84% or $3.61 from its 5-day moving average. CHKP is currently trading +4.20% higher than its 20-day SMA and -0.17% lower than its 100-day SMA. However, the stock’s current price level is +4.79% above the SMA50 and +14.04% above the SMA200.
The stochastic %K and %D were 46.14% and 27.87%, respectively, and the average true range (ATR) was 2.62. With the 14-day stochastic at 69.62% and the average true range at 2.55, the RSI (14) stands at 56.52%. The stock has reached -0.12 on the 9-day MACD Oscillator while the 14-day reading was at -0.81.
Analyst Ratings
Stifel launched coverage on Check Point Software Technologies Ltd. (NASDAQ: CHKP) in its analyst report released on May 09, 2023. The firm assigned the stock a Hold rating. The consensus rating for Check Point Software Technologies Ltd. (CHKP) among analysts is Overweight. According to current brokerage recommendations, 2 brokerage firms advise that investors sell CHKP, while 20 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 1 analysts, while 10 others rate it as a “buy”.
What is CHKP’s price target for the next 12 months?
Analysts predict a range of price targets between $118.00 and $161.00, with a median target of $139.00. Taking a look at these predictions, the average price target given by analysts for Check Point Software Technologies Ltd. (CHKP) stock is $139.13.
