CyberArks Slight Gain Masks 304th-Ranked Volume as Shorts Rise Amid Strong Earnings and Bearish Bets

CyberArk Software (CYBR) closed August 29 with a 0.02% gain, trading at $453.26, as its trading volume dropped 49.12% to $0.32 billion, ranking 304th in the market. The stock’s recent performance reflects mixed investor sentiment ahead of its next earnings report.

The company’s Q2 earnings report highlighted strong revenue growth, with total revenues reaching $328.03 million, exceeding estimates by 4.00%. Subscription revenue, which accounts for 80% of total revenue, surged 66% year-over-year to $263.8 million. Non-GAAP gross margin expanded to 84.2%, and annual recurring revenue (ARR) hit $1.27 billion, up 46.8% from the prior year. However, free cash flow turned negative in Q2 due to a $44 million one-time tax payment related to a business acquisition.

Short interest in CyberArk rose 14.0% in July, with 3.64% of the float currently sold short. The short interest ratio stands at 2.6, indicating it would take 2.6 days of average trading volume to cover all short positions. Institutional investors, including Goldman Sachs and Jane Street Group, have reported short positions, signaling cautious bearish sentiment. Meanwhile, the stock’s forward price-to-sales ratio of 18.04 remains elevated compared to industry peers.

Short interest in CyberArk increased to 1.79 million shares as of July 15, reflecting growing pessimism among some investors. The company’s public float stands at 49.11 million shares, with short interest rising amid mixed guidance for 2025. Analysts remain divided, with some citing strong demand for identity security solutions but others flagging near-term margin pressures from R&D and sales investments.