Is SentinelOne Stock a Buy After a Significant Insider Purchase?

In the world of contrarian investing, divergences between market sentiment and fundamental reality often create opportunities for patient, value-oriented investors. SentinelOne (NYSE: S) appears to be one such case, where a recent insider purchase, improving financials, and a steep stock price decline collectively suggest a compelling case for a high-conviction buy. Let's dissect the evidence.

A Bullish Signal from the C-Suite

On December 16, 2025, SentinelOne director Mark S. Peek purchased 40,000 shares of the company's Class A common stock via a trust, at a weighted average price of $14.89 per share, totaling approximately $595,600. This transaction increased his indirect holdings in the Omega Living Trust to 120,000 shares, while his direct holdings remained at 43,501 shares. Notably, Peek's purchase occurred amid a broader trend of insider selling by executives like CEO Tomer Weingarten, who sold 125,429 shares in December 2025. However, the fact that a board member chose to deploy capital at this juncture signals confidence in the company's long-term trajectory.

Historically, insider purchases have been correlated with positive stock performance in the subsequent months, particularly when they occur during periods of market pessimism. Peek's transaction, executed through a

trust, suggests a strategic, long-term perspective rather than a short-term speculative play.

Institutional Ownership Shifts and Contrarian Momentum

SentinelOne's institutional ownership stands at 90.87% as of 2025, according to MarketBeat, reflecting deep institutional conviction. However, Q3 2025 saw mixed activity: Insight Holdings Group reduced its stake by $60.5 million, while UBS Asset Management and Vanguard Group added 2.8 million and 2.19 million shares, respectively according to AOL Finance. These moves highlight a bifurcation in investor sentiment. On one hand, some funds are trimming exposure amid the stock's 34.33% annual decline. On the other, major asset managers are increasing positions, likely viewing the pullback as an opportunity to capitalize on undervaluation.

The stock's steep decline-down over 38% in some reports-has created a stark disconnect between its fundamentals and market price. For contrarian investors, this divergence is a red flag for short-term pessimism and a green light for long-term optimism.

Financial Progress and Path to Profitability

SentinelOne's fiscal 2025 results underscore its resilience. The company reported $821.5 million in revenue, a 32% year-over-year increase, with annual recurring revenue (ARR) surging 27% to $920.1 million. Q3 2025 revenue grew 23% year-over-year to $258.9 million, accompanied by improved margins and a clear shift toward profitability. These metrics suggest the company is navigating its growth phase with greater operational efficiency, a critical factor for long-term sustainability.

Despite these improvements, the stock remains undervalued relative to its peers. A 34.33% annual decline has eroded much of its market capitalization, even as revenue and ARR growth outpace industry averages. This mispricing creates a margin of safety for investors willing to look beyond near-term volatility.

The Case for a High-Conviction Buy

The combination of insider optimism, institutional reallocation, and robust financials paints a compelling picture for contrarian investors. Mark Peek's $595,600 purchase, coupled with UBS and Vanguard's additions, signals that key stakeholders see value at current levels. Meanwhile, the stock's steep discount to historical averages-trading near $15.94 as of November 26, 2025-offers a buffer against further downside.

For investors with a 3–5 year horizon, SentinelOne represents a rare intersection of strategic optimism and tactical affordability. The company's leadership in endpoint security, coupled with its improving profitability, positions it to capitalize on the growing demand for cybersecurity solutions.

Conclusion

SentinelOne's recent insider activity, institutional shifts, and financial progress collectively form a strong case for a contrarian buy. While the stock's decline reflects short-term challenges, the underlying business is strengthening. For those willing to embrace the counterintuitive, S offers a high-conviction opportunity to invest in a company poised for long-term growth.