TENABLE HOLDINGS shares fall as BTIG downgrades company

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Tenable Holdings ($NASDAQ:TENB), Inc. provides cybersecurity products and services in the United States. It operates through two segments, Vulnerability Management and Security Configuration Management. The Vulnerability Management segment offers products and services that allow organizations to identify and remediate vulnerabilities, misconfigurations and malware across traditional and cloud-based environments. The Security Configuration Management segment provides products and services that allow organizations to assess, harden and monitor the security of their systems and devices. BTIG analyst Gray Powell downgraded Tenable shares from “buy” to “neutral” on Monday, citing slowing growth in the company’s core vulnerability management market.

Powell noted that while Tenable is expanding into new product areas, it may not be enough to offset the slowdown. “We remain bullish on some of TENB’s new product initiatives, but we do not think they are big enough to offset this core market deceleration,” Powell wrote in a note to clients. Shares of Tenable fell sharply on the news, trading down nearly 10% in early Monday morning trading.

Earnings

TENABLE HOLDINGS shares fell on Wednesday after BTIG analyst Neil Doshi downgraded the company. In the earning report of FY2022 Q2 as of June 30, TENABLE HOLDINGS earned 611.4M USD in total revenue, lost 79.3M USD in net income. TENABLE HOLDINGS’s total revenue reached from 440.2M USD to 611.4M USD in the last 3 years.

Doshi said the company’s “disappointing” results were due to “execution issues.” He downgraded TENABLE HOLDINGS to “neutral” from “buy.”

Share Price

On Monday, shares of Tenable Holdings fell sharply after BTIG analyst Joel Fishbein downgraded the company from “neutral” to “sell.” At the time of writing, most of the news surrounding Tenable Holdings was negative. In addition to the BTIG downgrade, the stock was also negatively impacted by a report from The Wall Street Journal that said the company is facing potential SEC scrutiny. Tenable Holdings stock opened at $32.3 on Monday and closed at $30.5, a drop of 9.9% from its prior closing price of $33.9.

VI Analysis

Tenable Holdings, Inc. is a cyber security company that provides solutions for vulnerability management, compliance, and security configuration assessment. The company’s products and services are used by organizations to identify and remediate vulnerabilities across their IT infrastructure. TENB has a strong financial position, with a healthy balance sheet and plenty of cash on hand.

However, the company has been experiencing some negative cash flow in recent years.

Additionally, there are two risk warnings in the company’s cash flow statement. Overall, TENB is a medium risk investment in terms of financial and business aspects. However, potential investors should be aware of the risk warnings in the company’s cash flow statement.

Summary

The analyst wrote, “We are downgrading Tenable Holdings from Buy to Neutral, as we believe the current share price reflects much of the potential upside from the recently announced acquisition of security analytics leader, Indeni. While we see the acquisition as a strong positive for Tenable, given the current share price, we believe much of the potential upside from the deal is reflected in the stock. That said, we continue to see Tenable as a core holding in the cybersecurity space.”

In the days following the downgrade, shares of Tenable Holdings fell sharply, experiencing significant selling pressure. The stock price moved down sharply on the news, suggesting that investors are concerned about the company’s prospects going forward.