During the first quarter Caxton Associates (Trades, Portfolio) purchased a stake in CyberArk Software Ltd. (CYBR, Financial).
CyberArk Software develops, markets and sells software to eliminate the most advanced cyber attacks and threats. CyberArk is the only security company laser-focused on striking down targeted cyber threats that make their way inside, undetected, to attack the heart of the enterprise. About 2,600 global businesses use the services CyberArk provides to protect their highest value assets, enabling them to master audit and IT compliance requirements.
CyberArk is headquartered in Petach Tikvah, Israel, and has U.S. headquarters located in Newton, Massachusetts. The company also has offices throughout Europe, Middle East and Africa (EMEA) as well as Asia Pacific and Japan.
CyberArk Software has a market cap of $1.64 billion, a P/E ratio of 67.34, an enterprise value of $1.4 billion and a P/B ratio of 6.89.
Caxton Associates (Trades, Portfolio) may have decided to purchase a stake in CyberArk Software for the following reasons:
- CyberArk Software financial statements have been gaining momentum over the previous five years. Its revenue has grown from $36.4 million in December 2011 to $174.8 million over the previous trailing 12 months, an average annual increase of 36% over the previous five years.
- The gross profits for CyberArk Software have increased by 37% annually over the previous five years.
- The company has increased its cash flow by 94.20% over the previous 12 months. And, it has also increased its free cash flow per share by an average annual rate of 34% over the previous four years. In December 2011, the company reported 0.51 free cash flow per share. Over the previous trailing 12 months, the company has reported 1.67 free cash flow per share. CyberArk Software has no debt and a 9/10 financial strength rating according to GuruFocus.
- CyberArk Software has had strong financial reports over the previous five years. However, the company has one severe warning sign that investors should pay attention to. According to GuruFocus, CyberArk Software has a Professor Messod Beneish score of 0.13. This indicates that the company may have manipulated its financial statements.
Since Caxton Associates (Trades, Portfolio) purchased 286,000 shares of the company during the first quarter at an average price of $40.32 the stock has risen approximately 23% and was trading at $49.59 per share Wednesday.
Below is a Peter Lynch Chart for CyberArk Software.
Caxton Associates (Trades, Portfolio) is a global macro hedge fund founded by Bruce Kovner in 1983 and is headquartered in New York City. The firm also has offices in London, Sydney, and Princeton, New Jersey. Caxton Associates (Trades, Portfolio) identifies investments according to their research of global markets and analysis of worldwide economic trends.
Caxton Associates (Trades, Portfolio) went through a major generational transition in 2008 when Kovner stepped back from trading and appointed Andrew Law as chief investment officer. In 2011, Law was appointed as the chairman, CEO and controlling general partner of Caxton Associates (Trades, Portfolio) following Kovner's retirement. Caxton Associates (Trades, Portfolio) currently owns 112 stocks with a total value of $1,416 million.
Cheers to your investment success.
Disclosure: Author does not currently own any shares of this holding.
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