The stock has already soared, the numbers keep accelerating, and one concentrated fund just made it a core holding anyway.London-based Sand Grove Capital Management initiated a new position in CyberArk Software Ltd. (CYBR 0.62%), adding 39,121 shares worth an estimated $18.90 million, per a November 14 SEC filing.What HappenedAccording to a filing with the Securities and Exchange Commission dated November 14, Sand Grove Capital Management LLP reported a new position in CyberArk Software Ltd. (CYBR 0.62%), b ...

Company Overview - CyberArk is a global leader in identity security, focusing on privileged access management and cloud-based security solutions, addressing the cybersecurity demands of large enterprises and government agencies [6] - The company generates revenue through software licensing, SaaS subscriptions, and related security services, targeting sectors such as financial services, manufacturing, healthcare, energy, technology, and government [9] - As of November 13, 2025, CyberArk's market capitalization was $23.27 billion, with a revenue of $1.30 billion and a net income of -$226.92 million for the trailing twelve months [4] Recent Developments - Greenvale Capital LLP sold its entire stake in CyberArk, amounting to a position change of approximately $75.27 million, eliminating its holding of 185,000 shares [1][2] - Prior to the sale, CyberArk represented 6.4% of Greenvale Capital's assets under management (AUM) [3] - Following the sale, CyberArk shares were priced at $478.70, reflecting a 49.1% increase over the past year, outperforming the S&P 500 by 33.5 percentage points [3] Acquisition Context - Palo Alto Networks agreed to acquire CyberArk in a deal valued at roughly $25 billion, which includes a cash payment of $45 per share and 2.2005 shares of Palo Alto stock for CyberArk shareholders [10][11] - The acquisition impacts CyberArk's stock performance, which is now tied to the fluctuations of Palo Alto's stock [11] - The focus will shift to Palo Alto as it integrates CyberArk's products and operations into its own [12]

Group 1 - Maven Securities initiated a new equity stake in CyberArk Software Ltd. by adding 15,000 shares valued at approximately $6.5 million [2][6] - This new position represents 1.5% of Maven's reportable assets under management, outside its top five holdings [3][6] - As of November 19, 2025, CyberArk shares were priced at $475.67, reflecting a 51% increase over the past year, outperforming the S&P 500 by 43 percentage points [3][4] Group 2 - CyberArk Software Ltd. reported a total revenue of $1.30 billion and a net income of -$227 million for the trailing twelve months [4] - The company specializes in privileged access management, endpoint security, cloud entitlements, and identity management solutions, serving various sectors including financial services, healthcare, and government [8][9] - CyberArk's acquisition by Palo Alto Networks was approved by shareholders, with the deal valuing CyberArk at $25 billion, while it was trading at a $22 billion valuation at the time of the announcement [10]

Core Insights - Nepsis Inc. has fully exited its position in CyberArk Software, selling 34,236 shares for an estimated $13.93 million in Q3 2025, reducing its exposure to zero [1][2][9] Company Overview - CyberArk Software has a market capitalization of $25.59 billion and reported a revenue of $1.20 billion for the trailing twelve months (TTM) [4] - The company has a net income of -$165.37 million for the TTM [4] - As of October 23, 2025, CyberArk's share price was $507.04, reflecting a 75.5% increase over the past year [3][4] Business Model - CyberArk specializes in privileged access management, identity and access management, endpoint security, and cloud entitlement solutions, focusing on software-based and SaaS offerings [5][6] - The company serves a diverse customer base across various sectors, including financial services, healthcare, technology, and government [5][6] Financial Performance - CyberArk's share price has tripled over the last two years, currently trading at 21 times sales, indicating a high valuation [9][10] - The management aims to grow free cash flow to $600 million by 2028, which would imply a valuation of 43 times future free cash flow [10] Market Context - The cybersecurity sector is experiencing significant demand, with 93% of businesses reporting security-related breaches in the past year, highlighting the essential nature of CyberArk's offerings [11] - CyberArk has achieved a 44% annual growth rate in its annual recurring revenue over the last five years, suggesting potential for continued growth [12]

Core Insights - CyberArk (CYBR) and Qualys (QLYS) are significant players in the cybersecurity sector, focusing on different areas: CyberArk on privileged access management and identity security, while Qualys specializes in vulnerability management and compliance monitoring [1][2] CyberArk Overview - CyberArk is witnessing growth in its identity security offerings, particularly due to the increasing ratio of machine identities to human identities, now exceeding 80 to 1, compared to 45 to 1 a year ago [3] - The company is innovating with AI-based products such as Secure AI Agents and CORA AI, aimed at protecting AI agents from various security threats [4] - However, CyberArk's near-term growth is impacted by changing customer spending behaviors, with companies opting for phased investments in cybersecurity solutions [5] - The Zacks Consensus Estimate projects CyberArk's revenue growth rates of 32.3% for 2025 and 18.8% for 2026, with earnings growth rates of 27.4% and 25% respectively [6] Qualys Overview - Qualys has over 10,000 customers and a net dollar expansion rate of 104%, indicating strong customer retention and acquisition [10][12] - The company is enhancing its product offerings, including the launch of the first Risk Operations Center and Qualys TotalAI to mitigate risks associated with generative AI [13] - The Zacks Consensus Estimate anticipates revenue growth rates of 8% for 2025 and 6.5% for 2026, with earnings growth rates of 3.6% and 5.5% respectively [14] Market Performance and Valuation - Year-to-date, CyberArk shares have increased by 30.6%, while Qualys shares have decreased by 4.6% [16] - CyberArk is trading at a forward sales multiple of 14.7X, which is significantly higher than Qualys' 7.09X, indicating that CyberArk may be overvalued compared to Qualys [17] Investment Recommendation - Given the current market conditions, Qualys is recommended as a stronger investment option due to its robust growth and customer acquisition strategy, while CyberArk faces near-term challenges [19]