Verint Systems Inc. (VRNT) Looks Interesting In A Number Of Ways

It has been reported that multiple insider activity took place at Verint Systems Inc. (VRNT). CFO Robinson Douglas sold 1,432 shares for $174,635 in transaction occurred on 2019/01/15. After making this transaction, CFO owns a direct stake of 64,182 shares, worth $9,081,020, as per the last closing price.

CFO, Robinson Douglas had divested 1,875 shares for $176,067 through a trade on 2018/09/25. Following this activity, the insider holds 92,119 shares worth $9,155,484 as of recent close.

Verint Systems Inc. (NASDAQ:VRNT) dropped -0.65% in recent trade and currently has a stock-market value of $3.4B. The shares finished at $52, after trading as low as $51.64 earlier in the session. It hit an intraday high Wednesday at $52.535. Trading activity significantly weakened as the volume at ready counter decreased to 244,136 shares versus 347,200 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 362,893 shares. The stock is now 40.16% above against its bear-market low of $37.1 on March 28, 2018. It has retreated -4.27% since it’s 52-week high of $54.22 reached in February. Now the market price is up 32.65% on the year and up 22.9% YTD.

VRNT stock’s 50 day simple moving average (SMA 50) price is $47.89 and its 200-day simple moving average (SMA 200) price is $46.57. The company’s stock currently has a total float of 64.34M shares. Its weekly volatility is hovering around 2.07% and felt 2% volatility in price over a month. On the upside, the share price will test short term resistance at around $52.48. On a downside, the stock is likely to find some support, which begins at $51.58. The failure to get near-term support could push it to $51.16.

It had seen a new analyst call from Jefferies, which initiated the stock at Buy on January 10. Analysts at Imperial Capital, maintained the company shares at Outperform on December 11 but switched target price from $49.50 to $58. Analysts at Wedbush, made their first call about the stock on October 19, recommending it is Outperform. Imperial Capital analysts came out with bullish views on May 31 when the call was made. They think the stock is now Outperform compared to to their prior call for In-line.

When looking at valuations, Verint Systems Inc. (VRNT) has a pricey P/E of 51.79x as compared to industry average of 22.39x. Moreover, it trades for 14.71 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 2.82x price/book and 2.79x price/sales. Compared to others, Verint Systems Inc. is in a different league with regards to profitability, having net margins of 4.6%. To put some perspective around this, the industry’s average net margin is 8.98%. VRNT’s ROE is 4.8%, which is also considerably worse than the industry’s ROE of 14.57%. It’s also very liquid in the near term, with a current ratio of 1.6. The stock has a debt/capital of 0.

Shares of VRNT have gained 20.7% since the company’s most recent earnings report. Over the past 12 fiscal quarters, Verint Systems Inc. (NASDAQ:VRNT) has topped consensus earnings estimates in 9 quarters (75%), missed earnings in 3 quarters (25%), whereas at 0 occasion EPS met analyst expectations. VRNT last reported earnings that exceeded expectations. The company raked in $0.85 per share, -95.76% change on the same period last year. That was better than consensus for $0.71. Revenue for the recent quarter stood at $307.99 million, up 9% on last year and above the $305.31 million predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $309.1 million to $311.7 million, which should be compared with $301.25 million generated last year. EPS is seen in a range of $0.59 to $0.69, against the $0.6 reported a year ago.