Shares of N-able, Inc. (NYSE: NABL) experienced a significant increase before the market opened on Thursday, following a better-than-expected earnings announcement. The stock, which closed at $7.78, opened at $8.55 and last traded at $8.3350, with a trading volume of 210,603 shares.
For the quarter, N-able reported earnings per share of $0.13, surpassing analysts’ consensus estimates of $0.09 by $0.04. The company generated revenue of $131.71 million, outpacing the expected $127.48 million. Despite a negative net margin of 1.31%, N-able achieved a positive return on equity of 4.17%. The firm’s quarterly revenue reflected a year-over-year increase of 13.1%, maintaining the same earnings per share as the prior year.
N-able has provided guidance for fiscal year 2025, though specifics regarding earnings per share remain undisclosed.
Analyst Ratings and Market Response
The stock has recently been the subject of various analyst ratings, indicating mixed opinions among investors. On October 8, Weiss Ratings reiterated a “sell (d)” rating for N-able shares. In contrast, Wall Street Zen upgraded the stock from a “hold” to a “buy” rating on September 5. Scotiabank maintained a “sector perform” rating and increased its price target from $8.30 to $8.75 on August 8. Additionally, the Royal Bank of Canada raised its price target from $9.00 to $10.00 and classified the stock as “outperform.”
Currently, three investment analysts rate the stock as a Buy, two maintain a Hold rating, and one has issued a Sell rating. According to MarketBeat.com, the consensus rating remains “Hold” with an average price target of $9.31.
Insider Trading Activity
In related news, executive vice president Michael I. Adler sold 31,728 shares of N-able on August 19 at an average price of $7.72, totaling approximately $244,940.16. Following this transaction, Adler retains 468,555 shares valued at around $3,617,244.60. This sale represents a 6.34% reduction in his ownership.
Director Ann Johnson also sold 34,568 shares on August 18, with the shares sold at an average price of $7.70 for a total of $266,173.60. Post-sale, Johnson owns 37,424 shares valued at $288,164.80, reflecting a 48.02% decrease in her stake. Insider ownership currently accounts for 1.50% of N-able’s stock.
Institutional Ownership Trends
Recent modifications in institutional holdings have also been noteworthy. Charles Schwab Investment Management Inc. increased its stake in N-able by 5.2% during the first quarter, now holding 635,171 shares worth approximately $4.5 million after acquiring an additional 31,311 shares. Similarly, Public Sector Pension Investment Board raised its holdings by 27.0%, now owning 223,833 shares valued at $1.59 million.
Other significant investors include Cove Street Capital LLC, which acquired a new stake valued at $462,000, and Crescent Park Management L.P., which increased its stake by 37.2% to 1,300,489 shares worth about $9.22 million. Institutional investors and hedge funds collectively own 96.35% of N-able’s stock.
With a market capitalization of $1.55 billion, N-able’s stock carries a P/E ratio of -275.83 and a beta of 0.61. The company’s 50-day simple moving average stands at $7.99, while the 200-day moving average is at $7.88. N-able’s financial health is further supported by a quick ratio of 1.24 and a current ratio of 1.27, with a debt-to-equity ratio of 0.40.
N-able, Inc. provides cloud-based software solutions for managed service providers, primarily in the United States and the United Kingdom. The company aims to facilitate digital transformation and growth for small and medium-sized enterprises by offering an integrated software platform that serves as an operational backbone for its partners, scaling with their business needs.
