Check Point Software Technologies (NASDAQ:CHKP) Shares Gap Up on Earnings Beat

Check Point Software Technologies Ltd. (NASDAQ:CHKP)’s share price gapped up prior to trading on Tuesday after the company announced better than expected quarterly earnings. The stock had previously closed at $191.72, but opened at $208.66. Check Point Software Technologies shares last traded at $201.7150, with a volume of 708,956 shares traded.

The technology company reported $3.94 EPS for the quarter, topping analysts’ consensus estimates of $2.45 by $1.49. Check Point Software Technologies had a return on equity of 33.21% and a net margin of 32.48%.The company had revenue of $677.50 million for the quarter, compared to the consensus estimate of $673.60 million. During the same period last year, the business posted $2.25 EPS. The company’s quarterly revenue was up 6.7% compared to the same quarter last year. Check Point Software Technologies has set its FY 2025 guidance at 11.220-11.320 EPS. Q4 2025 guidance at 2.700-2.800 EPS.

Analyst Ratings Changes

A number of equities analysts have weighed in on the stock. Scotiabank set a $205.00 price objective on shares of Check Point Software Technologies and gave the company a “sector perform” rating in a research report on Monday, October 6th. Morgan Stanley reduced their price target on Check Point Software Technologies from $215.00 to $193.00 and set an “equal weight” rating for the company in a report on Tuesday, September 2nd. Citigroup lowered their price objective on Check Point Software Technologies from $230.00 to $200.00 and set a “neutral” rating for the company in a research note on Monday, August 18th. UBS Group cut their target price on Check Point Software Technologies from $220.00 to $210.00 and set a “neutral” rating on the stock in a research report on Thursday, July 31st. Finally, Weiss Ratings reiterated a “hold (c+)” rating on shares of Check Point Software Technologies in a research note on Wednesday, October 8th. One research analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating and seventeen have given a Hold rating to the company. According to MarketBeat, Check Point Software Technologies currently has an average rating of “Hold” and a consensus price target of $227.46.

Institutional Investors Weigh In On Check Point Software Technologies

A number of hedge funds have recently added to or reduced their stakes in CHKP. Legacy Investment Solutions LLC bought a new stake in Check Point Software Technologies in the 2nd quarter valued at about $25,000. Louisbourg Investments Inc. bought a new stake in shares of Check Point Software Technologies during the third quarter valued at approximately $29,000. Horizon Investments LLC raised its holdings in shares of Check Point Software Technologies by 116.4% during the first quarter. Horizon Investments LLC now owns 158 shares of the technology company’s stock valued at $36,000 after buying an additional 85 shares during the last quarter. Cromwell Holdings LLC acquired a new position in shares of Check Point Software Technologies during the first quarter worth approximately $37,000. Finally, First Horizon Corp bought a new position in Check Point Software Technologies in the 3rd quarter worth approximately $38,000. 98.51% of the stock is currently owned by institutional investors.

Check Point Software Technologies Trading Up 6.2%

The firm has a 50-day moving average of $196.02 and a 200 day moving average of $208.33. The stock has a market capitalization of $22.39 billion, a price-to-earnings ratio of 26.51, a PEG ratio of 2.88 and a beta of 0.60.

About Check Point Software Technologies

Check Point Software Technologies Ltd. develops, markets, and supports a range of products and services for IT security worldwide. The company offers a multilevel security architecture, cloud, network, mobile devices, endpoints information, and IOT solutions. It provides Check Point Infinity Architecture, a cyber security architecture that protects against fifth generation cyber-attacks across various networks, endpoint, cloud, workloads, Internet of Things, and mobile.