Cellebrite DI (NASDAQ:CLBT) Stock Jumps 6.6% After Earnings Beat

Cellebrite DI Ltd. (NASDAQ:CLBT) shares rose 6.6% during mid-day trading on Friday following a better than expected earnings announcement. The stock traded as high as $11.78 and last traded at $11.6090. Approximately 603,601 shares traded hands during trading, a decline of 73% from the average session volume of 2,259,783 shares. The stock had previously closed at $10.89.

The company reported $0.17 EPS for the quarter, beating analysts’ consensus estimates of $0.09 by $0.08. Cellebrite DI had a return on equity of 15.58% and a net margin of 11.43%. The firm had revenue of $149.02 million for the quarter, compared to the consensus estimate of $145.83 million.

Key Headlines Impacting Cellebrite DI

These are some of the CLBT headlines that stood out recently:

• Positive Sentiment: Needham raised its price target to $14 from $12.50 and reaffirmed a Buy rating, implying 28.6% upside from the cited $10.89 price. Needham recommendations
• Positive Sentiment: Q3 revenue was $149.02 million, above the $145.83 million estimate, and EPS of $0.17 topped the $0.09 consensus cited in the results report. Cellebrite also reported 20% ARR growth, $26.7 million in net income and a 31% trailing-twelve-month free-cash-flow margin. Cellebrite Q3 results
• Neutral Sentiment: Chief Revenue Officer Marcus Jewell sold 393 shares, about 0.09% of his holdings, and retained 426,735 shares. The small sale may have limited significance. SEC filing

Analyst Upgrades and Downgrades

Several equities analysts recently weighed in on the stock. Needham & Company LLC raised their price objective on shares of Cellebrite DI from $12.50 to $14.00 and gave the company a “buy” rating in a research report on Thursday. Weiss Ratings downgraded shares of Cellebrite DI from a “sell (d+)” rating to a “sell (d)” rating in a research report on Thursday, August 27th. Lake Street Capital dropped their price target on shares of Cellebrite DI from $21.00 to $15.00 and set a “buy” rating on the stock in a research note on Friday, August 14th. DA Davidson restated a “buy” rating and set a $15.00 price target on shares of Cellebrite DI in a research note on Tuesday, September 15th. Finally, JPMorgan Chase & Co. cut their price target on shares of Cellebrite DI from $20.00 to $16.00 and set an “overweight” rating on the stock in a report on Friday, August 14th. Four investment analysts have rated the stock with a Buy rating and one has given a Sell rating to the company. According to data from MarketBeat, Cellebrite DI has an average rating of “Moderate Buy” and a consensus price target of $15.00.

Insider Activity

In related news, insider Thomas E. Hogan sold 25,299 shares of the company’s stock in a transaction on Tuesday, August 25th. The shares were sold at an average price of $11.29, for a total transaction of $285,625.71. Following the completion of the sale, the insider directly owned 765,249 shares of the company’s stock, valued at approximately $8,639,661.21. This represents a 3.20% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CMO David Gee sold 4,323 shares of the firm’s stock in a transaction on Monday, August 24th. The shares were sold at an average price of $11.36, for a total transaction of $49,109.28. Following the completion of the transaction, the chief marketing officer owned 135,281 shares in the company, valued at $1,536,792.16. The trade was a 3.10% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 56,909 shares of company stock worth $641,890. 5.70% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the company. Nine Ten Capital Management LLC boosted its holdings in Cellebrite DI by 19.8% during the second quarter. Nine Ten Capital Management LLC now owns 4,126,808 shares of the company’s stock valued at $60,251,000 after acquiring an additional 682,933 shares during the period. Wellington Management Group LLP lifted its position in shares of Cellebrite DI by 93.7% during the 2nd quarter. Wellington Management Group LLP now owns 3,049,904 shares of the company’s stock worth $44,529,000 after purchasing an additional 1,475,579 shares during the last quarter. Renaissance Technologies LLC lifted its position in shares of Cellebrite DI by 14.7% during the 1st quarter. Renaissance Technologies LLC now owns 2,860,639 shares of the company’s stock worth $39,420,000 after purchasing an additional 365,700 shares during the last quarter. Principal Financial Group Inc. lifted its position in shares of Cellebrite DI by 33.9% during the 1st quarter. Principal Financial Group Inc. now owns 2,156,166 shares of the company’s stock worth $29,712,000 after purchasing an additional 545,334 shares during the last quarter. Finally, Weiss Asset Management LP boosted its stake in Cellebrite DI by 3,485.3% during the 1st quarter. Weiss Asset Management LP now owns 1,899,841 shares of the company’s stock valued at $26,180,000 after purchasing an additional 1,846,851 shares during the period. Institutional investors and hedge funds own 45.88% of the company’s stock.

Cellebrite DI Stock Performance

The stock has a market cap of $2.88 billion, a P/E ratio of 52.28, a P/E/G ratio of 1.95 and a beta of 1.06. The firm has a 50 day moving average of $11.61 and a two-hundred day moving average of $13.24.

About Cellebrite DI

Cellebrite DI Ltd. develops digital intelligence software and services that help organizations access, collect, preserve and analyze digital evidence. Its tools are used to investigate information from mobile devices, computers, cloud sources and other digital systems. The company’s offerings include its UFED platform for extracting data from digital devices, Physical Analyzer for examining and interpreting evidence, and analytics and case-management tools such as Pathfinder and Guardian. Customers include law enforcement, public safety, intelligence and defense agencies, as well as organizations in the private sector.