NEW YORK (TheStreet) -- FireEye (FEYE) shares are up 0.43% to $30.42 in trading on Monday, recovering from an earlier decline after the cyber security company announced that it identified a group of hackers that it says is responsible for attacks against publicly traded companies in an attempt to influence the stock market.
The company said that companies in the biotech sector were the subject of many of the hacking attempts by the group who were also able to glean information from 100 different publicly traded companies.
The hackers were able to steal merger and acquisition information from more than 80 companies over the past year by tricking lawyers and executives at the companies into providing access to confidential files.
The firm believes that the hackers are American and have previous Wall Street experience due to the sophistication and percision of the hacking attempts.
FireEye shares have declined almost 30% since the beginning of the year with the company taking a major hit last month following the release of disappointing third quarter numbers that saw the company miss analysts' earnings and revenue expectations for the period.
TheStreet Ratings team rates FIREEYE INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate FIREEYE INC (FEYE) a SELL. This is driven by a few notable weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share and deteriorating net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- FIREEYE INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. For the next year, the market is expecting a contraction of 363.3% in earnings (-$2.09 versus -$0.45).
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Software industry. The net income has significantly decreased by 135.7% when compared to the same quarter one year ago, falling from -$50.93 million to -$120.03 million.
- The share price of FIREEYE INC has not done very well: it is down 15.28% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter.
- Compared to other companies in the Software industry and the overall market, FIREEYE INC's return on equity significantly trails that of both the industry average and the S&P 500.
- The gross profit margin for FIREEYE INC is currently very high, coming in at 82.47%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -105.09% is in-line with the industry average.
- You can view the full analysis from the report here: FEYE Ratings Report