What a $19 Million CyberArk Buy Signals for Long-Term Investors Amid a 43% Stock Surge | The Motley Fool

London-based Sand Grove Capital Management initiated a new position in CyberArk Software Ltd. ( CYBR 0.70%), adding 39,121 shares worth an estimated $18.90 million, per a November 14 SEC filing. What Happened According to a filing with the Securities and Exchange Commission dated November 14, Sand Grove Capital Management LLP reported a new position in CyberArk Software Ltd. ( CYBR 0.70%), buying 39,121 shares. The position was valued at $18.9 million as of September 30. What Else to Know This was a new position for Sand Grove, representing 9.23% of 13F reportable assets under management as of quarter-end. Top five holdings after the filing: NYSE:TXNM: $33.54 million (16.4% of AUM) NYSE:K: $26.73 million (13.1% of AUM) NYSE:NSC: $25.35 million (12.4% of AUM) NASDAQ:MRUS: $22.54 million (11.0% of AUM) NASDAQ:EA: $22.44 million (11.0% of AUM) As of Tuesday, CyberArk shares were priced at $454.34, up 43% over the past year and solidly outperforming the S&P 500, which is up about 15% in the same period. Company Overview Metric Value Price (as of Tuesday) $454.34 Market Capitalization $22.93 billion Revenue (TTM) $1.30 billion Net Income (TTM) ($226.92 million) Company Snapshot CyberArk Software provides privileged access management, identity security, endpoint protection, and cloud entitlement management solutions, with a focus on software and SaaS offerings. The company serves enterprise customers across sectors such as financial services, healthcare, manufacturing, energy, technology, and government agencies worldwide. It operates globally with a direct sales force and a network of distributors, systems integrators, and managed security service providers. CyberArk Software Ltd. is a global leader in identity security and privileged access management. The company leverages a robust SaaS and software platform to address complex cybersecurity needs for large enterprises and institutions. Its strategic focus on recurring revenue streams and comprehensive security solutions positions it as a critical partner for organizations managing sensitive digital assets and regulatory compliance. Foolish Take Buying into a stock that’s been rallying over the past year is certainly an interesting move. And here, as you could expect, it looks more like an endorsement of business momentum that is still compounding rather than peaking. CyberArk’s third-quarter results help explain the confidence. Total revenue jumped 43% year over year to $342.8 million, while subscription revenue climbed 60% to $280.1 million. Annual recurring revenue reached $1.34 billion, up 45%, with subscriptions now representing 86% of the total. That mix matters. It gives the company far more visibility than it had even a few years ago and supports sustained reinvestment without leaning on capital markets. The CyberArk position represents more than 9% of the fund’s reported assets, placing it alongside industrials, consumer staples, and railroads that anchor the portfolio. That suggests a view of CyberArk less as a high beta trade and more as a durable infrastructure for enterprise security. In other words, CyberArk is being treated as a compounding platform business, not a one-cycle cybersecurity play. When funds make that shift, it is usually because the revenue engine looks built to last. Glossary Assets Under Management (AUM):...

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