Wall Street Zen Lowers Cellebrite DI Stock Rating to Hold

Cellebrite DI (NASDAQ: CLBT) has experienced a downgrade from a “buy” to a “hold” rating by analysts at Wall Street Zen, as detailed in a report released on October 8, 2023. This decision reflects a broader reassessment of the company’s stock following various evaluations from other financial institutions.

On the same day, Weiss Ratings maintained a “sell (d+)” rating for Cellebrite DI, indicating concerns regarding the company’s market performance. Other analysts have shown mixed sentiments; for example, Lake Street Capital recently adjusted its target price for the stock from $24.00 to $22.00 while still retaining a “buy” rating. Similarly, Needham & Company LLC lowered its target price from $24.00 to $18.00, although it also categorized the stock as a “buy.” In contrast, JPMorgan Chase & Co. raised its price target for Cellebrite DI from $20.00 to $23.00 and assigned an “overweight” rating as of September 24, 2023.

Currently, financial data from MarketBeat.com reveals that three analysts have issued “buy” ratings for the stock, while one has given it a “sell” rating. The consensus rating stands at “Moderate Buy,” with an average target price of $21.00.

Recent Financial Performance and Earnings Report

Cellebrite DI announced its earnings results on August 14, 2023, reporting earnings per share (EPS) of $0.12 for the quarter, surpassing analysts’ expectations of $0.11. The company generated revenue of $113.28 million, exceeding forecasts of $112.33 million. In comparison to the previous year, revenue increased by 18.4%, while EPS rose from $0.10 in the same quarter last year.

Despite a positive revenue trend, Cellebrite DI recorded a negative net margin of 34.56% but managed a return on equity of 23.92%. Looking ahead, the company has projected its Q3 and FY 2025 guidance at an EPS of $0.3.

Institutional Investor Activity

Recent changes in holdings by institutional investors have also impacted Cellebrite DI’s stock. Financial Management Professionals Inc. established a new position in the company valued at approximately $28,000 in the third quarter. CWM LLC significantly increased its stake by 85.7%, owning 1,560 shares valued at $29,000 after acquiring an additional 720 shares.

Additionally, Signaturefd LLC raised its holdings by 68.3%, now owning 2,019 shares worth $32,000. Assetmark Inc. and PNC Financial Services Group Inc. also made notable acquisitions, with the latter increasing its holdings by an impressive 1,998.0%, resulting in a total of 2,098 shares valued at $34,000. Currently, institutional investors own approximately 45.88% of Cellebrite DI’s stock.

Cellebrite DI Ltd. specializes in developing solutions for legally sanctioned investigations across various regions, including Europe, the Middle East, Africa, the Americas, and the Asia-Pacific. Its suite of solutions aids in the collection, review, analysis, and management of digital data throughout the investigative lifecycle, addressing cases such as child exploitation, homicide, and human trafficking.

The evolving landscape around Cellebrite DI’s stock highlights the ongoing scrutiny from analysts and investors alike, reflecting the complexities of the current market environment.