Shares of N-able, Inc. (NYSE:NABL) experienced a notable increase ahead of market trading on Thursday, following the company’s announcement of better-than-expected earnings. The stock, which had closed at $7.78 the previous day, opened at $8.55 and last traded at $8.33, with a trading volume of 210,603 shares.
In its latest earnings report, N-able revealed earnings of $0.13 per share for the quarter, surpassing analysts’ consensus estimates of $0.09 by $0.04. The company also reported quarterly revenue of $131.71 million, exceeding expectations of $127.48 million. This marked a year-over-year revenue increase of 13.1%. Despite the positive earnings, N-able reported a negative net margin of 1.31% and a return on equity of 4.17%.
The company has established its fiscal year 2025 guidance, although specific earnings per share targets have not yet been disclosed.
Analyst Ratings and Market Response
Recent analyst reports have provided varied assessments of N-able’s stock. On October 8, Weiss Ratings reaffirmed a “sell (d)” rating for N-able. Conversely, on September 5, Wall Street Zen upgraded the company’s rating from “hold” to “buy.” Additionally, Scotiabank revised its target price for N-able from $8.30 to $8.75 in a report dated August 8, maintaining a “sector perform” rating. Meanwhile, the Royal Bank of Canada increased its price target from $9.00 to $10.00, assigning an “outperform” rating.
Currently, three investment analysts have given N-able a Buy rating, while two have issued a Hold rating, and one has rated it as a Sell. According to data from MarketBeat.com, N-able holds a consensus rating of “Hold” with an average price target of $9.31.
Insider Transactions and Institutional Holdings
In related news, Michael I. Adler, Executive Vice President, 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 retained 468,555 shares valued at around $3,617,244.60, reflecting a 6.34% decrease in ownership.
Additionally, Director Ann Johnson sold 34,568 shares on August 18, receiving about $266,173.60 at an average price of $7.70. After this sale, Johnson owned 37,424 shares, valued at approximately $288,164.80, which was a 48.02% decrease in her ownership. Insider ownership in N-able currently stands at 1.50% of the company’s stock.
Institutional investors have also recently adjusted their positions in N-able. Charles Schwab Investment Management Inc. increased its holdings by 5.2%, now owning 635,171 shares worth $4,503,000. The Public Sector Pension Investment Board raised its stake by 27.0%, acquiring an additional 47,527 shares to total 223,833 shares valued at $1,587,000. Other investors, such as Cove Street Capital LLC and Crescent Park Management L.P., also expanded their positions, highlighting strong institutional interest in N-able.
Overall, institutional investors and hedge funds own a substantial 96.35% of N-able’s stock, illustrating confidence in the company’s growth potential.
N-able, headquartered in the United States, specializes in providing cloud-based software solutions for managed service providers (MSPs) globally, facilitating digital transformations for small and medium-sized enterprises. As the company continues to grow, its latest earnings report suggests a positive trajectory, garnering attention from both analysts and investors alike.
