SailPoint (NASDAQ:SAIL) Shares Gap Down – Should You Sell?
by Scott Moore · The Cerbat GemShares of SailPoint, Inc. (NASDAQ:SAIL – Get Free Report) gapped down before the market opened on Wednesday . The stock had previously closed at $17.79, but opened at $17.04. SailPoint shares last traded at $17.9060, with a volume of 1,783,472 shares.
SailPoint News Summary
Here are the key news stories impacting SailPoint this week:
- Positive Sentiment: Adjusted earnings were $0.09 per share, ahead of the $0.08 consensus estimate and up from $0.07 a year earlier. Revenue reached $308.81 million, an increase of 17% year over year, while annual recurring revenue grew 25%. SailPoint Q2 Earnings Surpass Estimates
- Positive Sentiment: The company’s identity-security business continues to show demand, supported by recurring-revenue growth and its positioning in enterprise cybersecurity. SailPoint Tops Earnings Estimates as Annual Recurring Revenue Grows 25%
- Neutral Sentiment: Full-year fiscal 2027 revenue guidance was broadly in line with analyst expectations, while EPS guidance of $0.30-$0.34 brackets the $0.32 consensus estimate. Management also scheduled a conference call to discuss the results and outlook. SailPoint Announces Fiscal Second Quarter 2027 Results
- Negative Sentiment: Quarterly revenue missed expectations despite the earnings beat, raising concerns about growth execution. Third-quarter EPS guidance of $0.07-$0.08 was below the $0.08 analyst estimate, although revenue guidance of $326 million-$330 million was roughly in line with forecasts. SailPoint Beats Earnings Estimates as Annual Recurring Revenue Grows 25%
- Negative Sentiment: Reported insider-trading data shows extensive selling by executives over the past six months and no purchases, a potential sentiment overhang for investors. SailPoint Fiscal Second Quarter Results
Analyst Upgrades and Downgrades
A number of equities analysts have weighed in on the stock. Scotiabank reaffirmed a “sector outperform” rating and set a $19.00 price target (up from $16.00) on shares of SailPoint in a research note on Tuesday, June 9th. Truist Financial raised their price objective on shares of SailPoint from $18.00 to $23.00 and gave the stock a “buy” rating in a report on Wednesday, August 19th. Stephens reaffirmed an “overweight” rating and set a $20.00 price objective on shares of SailPoint in a research report on Wednesday, June 17th. Morgan Stanley upped their price objective on SailPoint from $18.00 to $22.00 and gave the stock an “overweight” rating in a research note on Thursday, August 20th. Finally, Barclays raised their price target on shares of SailPoint from $19.00 to $21.00 and gave the company an “overweight” rating in a research note on Tuesday, September 1st. One equities research analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $20.55.
Read Our Latest Report on SailPoint
SailPoint Trading Down 0.8%
The company has a fifty day simple moving average of $17.17 and a 200-day simple moving average of $14.95. The stock has a market cap of $10.01 billion, a price-to-earnings ratio of -65.37, a P/E/G ratio of 1.97 and a beta of 2.17.
SailPoint (NASDAQ:SAIL – Get Free Report) last announced its quarterly earnings data on Wednesday, September 9th. The company reported $0.09 EPS for the quarter, beating analysts’ consensus estimates of $0.08 by $0.01. SailPoint had a negative net margin of 14.04% and a positive return on equity of 2.31%. The firm had revenue of $308.81 million for the quarter. During the same period in the previous year, the firm posted ($0.02) earnings per share. The business’s revenue for the quarter was up 17.0% on a year-over-year basis. SailPoint has set its FY 2027 guidance at 0.300-0.340 EPS and its Q3 2027 guidance at 0.070-0.080 EPS. As a group, analysts anticipate that SailPoint, Inc. will post 0.32 earnings per share for the current year.
Insider Transactions at SailPoint
In other news, CEO Mark D. Mcclain sold 93,260 shares of the company’s stock in a transaction dated Wednesday, July 8th. The stock was sold at an average price of $15.42, for a total transaction of $1,438,069.20. Following the completion of the sale, the chief executive officer owned 8,093,870 shares in the company, valued at approximately $124,807,475.40. This represents a 1.14% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, EVP Chandrasekar Gnanasambandam sold 19,540 shares of the stock in a transaction dated Wednesday, July 8th. The shares were sold at an average price of $15.42, for a total value of $301,306.80. Following the transaction, the executive vice president directly owned 934,508 shares in the company, valued at approximately $14,410,113.36. This represents a 2.05% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 491,559 shares of company stock valued at $7,809,391 in the last three months. 1.70% of the stock is currently owned by company insiders.
Institutional Investors Weigh In On SailPoint
A number of large investors have recently added to or reduced their stakes in SAIL. State of Wyoming bought a new stake in SailPoint during the second quarter worth approximately $45,000. Palladiem LLC bought a new position in shares of SailPoint in the fourth quarter valued at approximately $42,000. Gables Capital Management Inc. acquired a new stake in shares of SailPoint in the second quarter worth $29,000. Kestra Advisory Services LLC acquired a new stake in shares of SailPoint in the fourth quarter worth $42,000. Finally, Northwestern Mutual Wealth Management Co. bought a new stake in shares of SailPoint during the 2nd quarter worth $50,000.
SailPoint Company Profile
SailPoint Technologies Holdings, Inc (NASDAQ: SAIL) is a leading provider of enterprise identity governance solutions that enable organizations to manage and secure user access across on-premises, cloud and hybrid IT environments. Its software automates identity lifecycle management, access certifications, policy enforcement and privileged account governance, helping enterprises reduce security risks, maintain regulatory compliance and streamline IT operations. The company’s flagship offerings include IdentityIQ, a comprehensive on-premises platform, and IdentityNow, a cloud-native identity governance-as-a-service solution.
Founded in 2005 by industry veterans Mark McClain and Kevin Cunningham, SailPoint is headquartered in Austin, Texas.