Qualys Shares Surge After Earnings Report

Qualys, Inc. (NASDAQ:QLYS) experienced a significant increase in its share price on Wednesday following a much-anticipated earnings report that surpassed expectations. The stock, which previously closed at $128.23, opened at $153.75, marking a notable jump. As trading progressed, Qualys shares were last seen at $148.63, with a trading volume of 397,348 shares.

The software company's earnings per share (EPS) for the quarter stood at $1.56, exceeding the analysts' consensus estimate of $1.33 by $0.23. Additionally, Qualys achieved a return on equity of 44.80% along with a net margin of 29.36%. The reported revenue for the quarter was $153.87 million, which also outperformed the expected $150.74 million. Comparing this to the same quarter last year, the company showed an 8.4% growth in revenue, where it had reported an EPS of $1.24.

Analyst Ratings Update

In light of the recent earnings report, several analysts have adjusted their ratings for Qualys. Morgan Stanley raised its target price for the stock from $123.00 to $126.00, maintaining an "underweight" rating. Meanwhile, Wedbush revised down its price target from $190.00 to $160.00 while continuing to rate the stock as "outperform". Scotiabank also lowered its target price from $167.00 to $150.00 and assigned a "sector perform" rating.

Furthermore, Needham & Company initiated coverage on Qualys with a "hold" rating, while Northland Securities reaffirmed a "market perform" rating and adjusted its price objective down to $140.00 from a previous $150.00. Overall, among analysts, three have given the stock a sell rating, thirteen have rated it hold, and two have recommended buying. MarketBeat.com indicates that the average rating for the company is "Hold," with a consensus target price of $152.80.

Insider Activity

In related news, insider Bruce K. Posey sold 1,330 shares of Qualys stock on September 20th at an average price of $123.80, totaling $164,654. Post-transaction, he now owns 55,618 shares valued at approximately $6.88 million. Additionally, CFO Joo Mi Kim sold 616 shares on September 5th at an average price of $123.54, amounting to $76,100.64. Following this sale, he retains 86,576 shares worth about $10.70 million. Combined, insiders sold 10,919 shares in the last 90 days, representing about 1.00% of the company's stock held by corporate insiders.

Institutional Investment Changes

Recent adjustments by institutional investors have also been observed. For instance, First Horizon Advisors Inc. boosted its stake in Qualys by an impressive 294.7% in the second quarter. It now holds 225 shares valued at $32,000 after acquiring 168 additional shares. Similarly, UMB Bank n.a. increased its position in the software company by 149.0%, owning 239 shares worth $34,000 after purchasing an extra 143 shares.

Other notable investments include Quarry LP purchasing a new stake valued at approximately $40,000 in the second quarter, while DT Investment Partners LLC made a new investment worth about $41,000. Exchange Traded Concepts LLC expanded its position in Qualys by 53.6%, now owning 639 shares at a value of $82,000. A substantial majority, 99.31%, of the stock is held by hedge funds and other institutional investors.

Qualys Stock Overview

Qualys maintains a 50-day simple moving average of $125.52 and a 200-day simple moving average of $136.45. The firm boasts a market capitalization of $5.71 billion, a price-to-earnings ratio of 34.16, and a beta of 0.47.

Company Background

Qualys, Inc. provides a cloud-based platform that delivers IT security and compliance solutions across the globe. Its offerings include various applications such as Cybersecurity Asset Management, Vulnerability Management, Web Application Scanning, and many more to ensure comprehensive security strategies for organizations.

Qualys, Earnings, Investors