CHKP stock: buy or sell?

CHKP stock price: $108.90 0.67% At close on September 20th, 2019

Updated on:
September 20th, 2019

1

Shares of Check Point Software closed today at $108.90 and stepped up a tiny 0.67%.

Check Point Software Technologies Ltd. provides hardware and software products and services for IT security worldwide. The company offers a portfolio of network security, endpoint security, data security, and management solutions.

Should I buy CHKP stock?

Make a decision about when to buy or sell stocks is one of the hardest parts of being a trader or investor. Trading strategies are meant for helping you in the decision process of what stocks to choose and when is the best time to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.

None of our preferred buy setups matches with Check Point Software stock situation right now, hence this is not a suitable entry point.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This is not a selling recommendation at all, just it's not the best moment to buy if you follow any of these trading strategies.

Is Check Point Software Technologies stock a buy?

Banks and financial institutions post stock ratings everyday. At Stocks2.com, we gathered 10 ratings published for CHKP stock in the last month.

Is CHKP a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-9-19Bank of AmericaBuyUnderperform
2019-9-15Robert W. Bairdn/aHold
2019-7-25Northland SecuritiesHoldNeutral
2019-7-24Robert W. Bairdn/aHold
2019-7-16OTR Globaln/aPositive
2019-4-15OppenheimerOutperformOutperform
2019-4-15Deutsche Bankn/aHold
2019-4-12Barclaysn/aEqual Weight
2019-3-26Mizuhon/aNeutral
2019-1-31Evercore ISIn/aHold

CHKP stock analysis

Daily outlook

Check Point Software shares stepped up 0.67% to $108.90 today.

Check Point Software closed today at $108.90 and stepped up a tiny 0.67%. Since price and SMA200d lines crossed down on July, CHKP fell $-6.81 per share (-5.89%).

CHKP stock chart (daily)

Weekly outlook

Shares of Check Point Software Technologies ended this week at $108.90 and slipped a fateful -2.66%.

Since price and 40-weeks moving average lines crossed down late July, CHKP fell $-7.18 per share (-6.19%). Stocks under the 40w moving average line are usually not recommended for average traders. Far behind is the all-time high Check Point Software Technologies hit by mid April and since then the price is -17.97% below that top.

CHKP stock chart (weekly)

CHKP stock price history

CHKP stock went public on June 28th, 1996 with a price of $3.211. Since then, CHKP stock grew a 3,292.50%, with an average of 143.20% per year. If you had invested $1,000 in CHKP stock in 1996, it would worth $32,925.00 today.

1: Adjusted price after possible price splits or reverse-splits.

CHKP stock historical price chart

CHKP stock reached all-time highs on April with a price of $132.76.

CHKP stock price target is $124.30

Nobody can reliably foresee how stock prices may evolve in the future. However, financial institutions invest time and resources to provide the most accurated estimations to help investors to make their decisions. We do not recommend to follow these stock price predictions without a critical thinking from your side, as their accuracy is usually low. For the last month we found 6 price targets for Check Point Software Technologies stock:
CHKP stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-9-19Bank of AmericaDowngrades$130.00$116.00-10.8%
2019-7-24Robert W. BairdReiteratesn/a$120.00-
2019-4-15OppenheimerRaises Target$130.00$145.0011.5%
2019-4-15Deutsche BankRaises Target$110.00$125.0013.6%
2019-4-12BarclaysRaises Target$120.00$135.0012.5%
2019-1-31Evercore ISIReiteratesn/a$105.00-
(in average)$122.50$124.301.0%
The price target for Check Point Software stock is $124.30, moving in a range between $145.00 and $105.00. In average, analysts' outlook on CHKP price target is stable from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

Since last April, when Check Point Software posted its last earnings report, it . As soon as we get its posted EPS from the earnings report, we will update this review.
CHKP earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q2-n/a1.12n/a
2017-Q32017-10-311.241.34.8%
2017-Q42018-01-311.51.585.3%
2018-Q12018-04-251.181.180.0%
2018-Q22018-07-251.191.255.0%
2018-Q32018-10-241.231.262.4%
2018-Q42019-01-301.491.543.4%
2019-Q12019-04-231.31n/an/a
2019-Q2-n/an/an/a
2019-Q3-n/an/an/a

Annual financial results

Compared to 2017, last anual sales report draw a fine gain of 3.33% to $1,916.47 million USD. Nevertheless, its profit margin (compared to sales) remained constant to 42.86%, that is $821.31 million.

To have an updated view of the financial situation of Check Point Software Technologies, we have calculated the trailing twelve month (TTM) sales and income figures. TTM values are the sum of the last 4 quarters and aproximate to an annual fiscal report ending in 2019-Q1 that can be compared to 2018 fiscal year results. Annual Check Point Software Technologies TTM sales up to March 2019 were $1,935.98 and income was $814.10 million dollars. If we compare this TTM figures with the last reported annuality, we can review Check Point Software business evolution since December 2018: Annual sales up to March, compared to lastest yearly report, grew a slightly fine 1.02%. In the same way, profit margin (net income/sales) stayed stable at 42.86%.

CHKP annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$1,390 M-$653 M47.0%-
2014$1,496 M7.61%$660 M44.1%1.04%
2015$1,630 M8.96%$686 M42.1%3.99%
2016$1,741 M6.84%$725 M41.6%5.68%
2017$1,855 M6.51%$803 M43.3%10.77%
2018$1,916 M3.33%$821 M42.9%2.29%
TTM $1,936 M1.02%$814 M42.1%-0.88%

Quarterly financial results

Check Point Software Technologies posted $471.83 million in sales for 2019-Q1, a -10.22% decline compared to previous quarter. Reported quarter earnings marked $179.93 M with a profit margin of 38.14%. Profit margin dropped a -7.20% compared to previous quarter when profit margin was 45.33%. When comparing turnover to same quarter last year, Check Point Software sales marked a nice growth and gained a 4.31%.
CHKP quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q2$459 M-$188 M41.1%-
2017-Q3$455 M-0.86%$193 M42.4%2.30%
2017-Q4$506 M11.30%$239 M47.3%24.19%
2018-Q1$452 M-10.61%$187 M41.4%-21.80%
2018-Q2$468 M3.41%$198 M42.3%5.64%
2018-Q3$471 M0.65%$198 M42.1%0.28%
2018-Q4$526 M11.62%$238 M45.3%20.19%
2019-Q1$472 M-10.22%$180 M38.1%-24.48%

Check Point Software ownership

When you are planning to buy shares of a stock, it's always worth to have a look its ownership structure.

Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For Check Point Software Technologies, 21.93% of all outstanding shares are owned by its staff.

In case of Check Point Software stock, 75.55% of its shares are held by institutions (mutual funds, pension funds, big banks and other large financial institutions). Bearish positions for CHKP stock account 0.00%, no big difference from last month.

For a better understanding, the following table shows ownership data compared to other related stocks:

CHKPCSCOCYRNFEYEFTNT
Market cap$16.9 B$212.3 B$95.4 M$3.0 B$13.4 B
Total shares155.4 M4,280.0 M54.5 M214.8 M171.0 M
Float shares115.6 M4,240.0 M26.1 M205.9 M146.2 M
  - Institutional holdings (%)75.5%77.3%71.5%75.8%77.1%
  - Insider holdings (%)21.9%0.1%3.7%2.5%17.1%
Shares in short selling0.0%0.0%0.0%0.0%0.0%

CHKP summary

Friday, September 20th, 2019
Open$108.30
Close$108.90
Day range$107.81 - $109.25
Previous close$108.18
Session gain0.67%
Average true range$2.12
50d mov avg$110.66
100d mov avg$113.19
200d mov avg$114.57
Daily pattern
Weekly pattern lt03a

Check Point Software performance

To measure stock performance is always good to benchmark with competitors or related stocks. We picked Cisco Systems, CYREN, FireEye, Fortinet, HP, International Business Machines, Juniper Networks, Microsoft, Palo Alto Networks and Symantec as the bechmarking frame for Check Point Software Technologies stock.
Stock3m6m12m
CHKPCheck Point Softw...-4.62%-13.18%-7.52%
CSCOCisco Systems-12.48%-4.76%4.95%
CYRNCYREN11.46%-19.35%-43.55%
FEYEFireEye-4.11%-15.96%-16.71%
FTNTFortinet3.01%-7.95%-8.26%
HPQHP-8.67%-1.42%-25.03%
IBMInternational Bus...3.92%4.96%-0.91%
JNPRJuniper Networks-10.34%-7.99%-17.57%
MSFTMicrosoft2.14%19.97%23.96%
PANWPalo Alto Network...2.15%-13.81%-8.99%
SYMCSymantec15.45%5.64%16.29%

Check Point Software competitors

We chose a few stocks to conform a list of Check Point Software Technologies competitors to watch if you are interested in investing in CHKP: