This Cybersecurity Stock Surged 11% Today And Is On Track To Surpass The 100-DMA — What’s Driving The Rally?

NABL announced that its Board has approved an increase of $50 million to the previously authorized program.

• CFO Tim O’Brien stated that the increased authorization reflects the firm’s conviction that repurchasing shares at current levels “represents an attractive use of capital and a compelling opportunity to create shareholder value over the long-term.”
• During the second quarter, NABL reported revenue of $138.22 million compared to an estimated $137.95 million.
• The firm reduced its full-year revenue outlook to the range of $539 million to $542 million compared to the previously guided range of $554 million to $559 million.

Shares of cybersecurity firm N-able, Inc. (NABL) surged over 11% in Friday’s pre-market after the company announced an increase to its share repurchase program.

N-able announced that its Board has approved an increase of $50 million to the previously authorized program of up to an aggregate of $75 million of shares of its common stock. N-able stated that it had $45 million remaining as of June 30 from the previous authorization.

NABL stock appeared set to breach its 100-day moving average for the first time since August 7.

CFO Tim O’Brien stated that the increased authorization reflects the firm’s conviction that repurchasing shares at current levels “represents an attractive use of capital and a compelling opportunity to create shareholder value over the long-term.”

“As threats continue to evolve and our customers' security needs grow more complex, we believe N-able is well positioned to provide critical cybersecurity solutions to businesses everywhere. We remain confident in our ability to drive long-term growth and profit, while staying focused on disciplined capital allocation.”

NABL’s Q2 Performance

During the second quarter (Q2), NABL reported revenue of $138.22 million compared to an estimated $137.95 million. Adjusted earnings per share (EPS) came in at $0.10, in line with the Street estimates.

The firm reduced its full-year revenue outlook to the range of $539 million to $542 million, down from the previously guided range of $554 million to $559 million. It expects total ARR in the range of $562 million to $565 million, compared with earlier guidance of $581 million to $586 million.

Adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) is now expected to range between $158 million and $161 million versus the previous guidance of $167 million to $171 million.

Street’s Take On NABL

Wall Street followed with price cuts. According to TheFly, RBC Capital downgraded the stock to ‘Sector Perform’ from ‘Outperform’ with a price target of $4, down from $6.

BMO Capital lowered its target to $3.75 from $6 and keeps a ‘Market Perform’ rating, while Scotiabank lowered its target to $3.65 from $5.75 with a ‘Sector Perform’ rating on the shares.

On Stocktwits, retail sentiment continued to trend in the ‘bearish’ territory.

The stock has lost nearly 45% this year.

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