CyberArk Software's 15-minute chart has recently triggered a MACD Death Cross and Bollinger Bands Narrowing, which occurred on August 1, 2025 at 15:45. This development suggests that the stock price may continue to decline, with a potential decrease in the magnitude of price fluctuations.
Palo Alto Networks (NASDAQ:PANW) has announced a definitive agreement to acquire CyberArk Software (NASDAQ:CYBR) for approximately $25 billion in a cash and stock transaction. The acquisition, which is set to accelerate Palo Alto Networks' platformization efforts, includes a combination of $45 in cash and 2.2005 shares of Palo Alto Networks stock for each CyberArk share [1].
CyberArk Software brings strong fundamentals to the deal, with impressive revenue growth of 35% over the last twelve months and industry-leading gross margins of 78% [1]. The acquisition will allow Palo Alto Networks to provide a comprehensive set of platforms across the industry, according to Palo Alto Networks CEO Nikesh Arora [1].
Following the announcement, CyberArk shares traded relatively flat, while Palo Alto Networks stock closed down approximately 6%, extending its decline after falling about 5% during the previous session following the WSJ report [1]. Year-to-date, CyberArk shares have gained approximately 30% while Palo Alto Networks stock has risen about 1% compared to an 8% increase for the Russell 3000 index [1].
Several financial firms have adjusted their ratings for CyberArk following the acquisition announcement. RBC Capital downgraded the stock from Outperform to Sector Perform while raising its price target to $448. Piper Sandler also downgraded CyberArk from Overweight to Neutral, citing the acquisition as a compelling addition to Palo Alto’s portfolio. UBS followed suit, downgrading CyberArk from Buy to Neutral and slightly increasing the price target to $485. Guggenheim removed its price target for CyberArk after downgrading it from Buy to Neutral, highlighting the dependency of the deal on Palo Alto’s stock performance. BTIG also downgraded CyberArk from Buy to Neutral after the acquisition announcement [1].
CyberArk Software recently reported $0.98 EPS for the quarter, surpassing analyst expectations, with a year-over-year revenue growth of 43.3% [2]. Nicholas Wealth LLC. acquired a new stake in CyberArk Software Ltd. in the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor acquired 2,949 shares of the technology company's stock, valued at approximately $997,000 [2].
Analysts have mixed views on CyberArk following the acquisition. Rosenblatt Securities analyst Catharine Trebnick has given CyberArk a Hold rating and a $445 price target, citing the company's Q1 revenue of $317.6 million and a net profit of $11.46 million compared to $221.55 million in revenue and $5.47 million in net profit last year [3]. Trebnick has a 43.47% success rate on recommended stocks and an average return of -4.1% [3].
Additionally, Baird downgraded its rating on CyberArk from Neutral to Outperform, with the target price remaining at $460 [4].
References
[1] https://www.investing.com/news/analyst-ratings/palo-alto-networks-to-acquire-cyberark-software-stock-for-25-billion-93CH-4162101
[2] https://www.marketbeat.com/instant-alerts/filing-nicholas-wealth-llc-makes-new-investment-in-cyberark-software-ltd-nasdaqcybr-2025-07-25/
[3] https://www.marketscreener.com/news/palo-alto-networks-inc-entered-into-a-definitive-agreement-to-acquire-cyberark-software-ltd-for--ce7c5fdfde8ef627
[4] https://www.ainvest.com/news/cyberark-software-baird-downgrades-neutral-rating-target-price-460-2508/
Comments
No comments yet