Pure Storage (PSTG) Plunges 1.55% as Insider Sales and Execution Risks Spur Profitability Concerns

Pure Storage (PSTG) shares fell 1.55% on October 4, 2025, hitting a new low since October 2025, with an intraday decline of 2.50%. The stock has faced pressure amid a mix of strategic developments and market skepticism.

The company’s recent momentum was bolstered by its recognition as a “Leader” in the 2025 Gartner Magic Quadrant for Enterprise Storage Platforms, reinforcing its position in the flash storage sector. Analysts at Evercore ISI, Bank of America, and JPMorgan raised price targets in late August and September, citing strong Q4 2025 earnings and guidance that exceeded revenue forecasts. Institutional investors also increased stakes in PSTG during the period, signaling confidence in its growth trajectory.

However, downward pressure emerged from insider sales, including transactions by directors and executives that trimmed their holdings by double digits. These moves raised questions about near-term confidence, while short-sellers like Kerrisdale Capital highlighted risks in Pure Storage’s hyperscaler strategy, arguing potential execution challenges could undermine growth. Gross margin contraction to 69.2% in Q4 2025, below the FactSet consensus, further fueled concerns about profitability, despite analysts noting temporary factors behind the dip.

Technical indicators added to the sell-off, with the stock breaking below its 200-day moving average in late September. While long-term optimism remains tied to cloud integration and market leadership, short-term volatility persists as investors weigh strategic execution against margin pressures and competitive dynamics.