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Summary
- FireEye stocks have tumbled more than 10 per cent in its early intraday trading session on December 9 as the company disclosed its latest cybersecurity breach.
- Cybersecurity stocks have yielded 22.3 per cent returns in the last three months.
- The company reported a record third quarter of 2020 with a revenue of US$ 238 million, a growth of 6 per cent year-over-year.
FireEye, one of the largest cybersecurity firms in the US, disclosed that it was hack on December 8. The company claimed that the breach is by a highly sophisticated state-sponsored attacker using novel techniques, which stole an arsenal of internal hacking tools. The cyber-attack was revealed in a blog post written by FireEye CEO Kevin Mandia.
The company is seeking probe assistance from the Federal Bureau of Investigation (FBI) and other key allies, including Microsoft. Their initial analysis confirms that beyond the tool theft, the hackers also seemed to be interested in a subgroup of FireEye clients that includes government organizations.
The FBI is yet to make any comment on this cyber-attack on a cybersecurity company.
In the wake of this breach of data, let us take a closer look at the cybersecurity firm’s stock movement and financial health.
FireEye Inc. (FEYE:US or NASDAQ: FEYE)
Current Stock Price: US$ 15.52
FireEye is a cybersecurity company that provides solutions for webs, endpoints, and email. It offers cloud-based security through its Mandiant consulting group as a leading competitor in the cyber market for hacking responses and security evaluation.
The company recently completed its acquisition of Respond Software, a cloud-native AI firm. This acquisition will accelerate FireEye’s cyber investigation and response to the multi-sourced cyber-attack evidence using cloud-based models.
The stock has tumbled over 10.5 per cent in its early intraday trading session on December 9. However, the software stock has returned 22.3 per cent in the last three months. The stock has declined by 6 per cent year-to-date.
Its 10-day average stock trading volume is 4.8 million units.
The tech stock’s debt-to-equity (D/E) ratio is 1.55. The price-to-book (P/B) ratio is 5.484, and its present price-to-cashflow (P/CF) stands at 53.70. The company has a current market cap of approximately US$ 3.639 billion, as per the data available on the TMX portal.
In the third quarter of 2020, the company reported record revenue of US$ 238 million, a rise of 6 per cent from the third quarter of 2019.
The software company posted all-time high annualized recurring revenue of US$ 314 million for Platform, cloud subscription, and operated services, a surge of 18 per cent against Q3 2019.
The cybersecurity firm also registered a record operating income, net income, and earnings per share in Q3 2020.
