When a company announces it’s “exploring strategic options,” that usually turns out to be good news for the stock. It was no exception for cybersecurity stock SentinelOne (NYSE:S), as reports emerged that it was looking to do just that. In fact, it might also consider a potential sale, which sent shares rocketing up over 13% in Monday afternoon’s trading.
SentinelOne turned to Qatalyst Partners to help it explore those strategic options that might ultimately include selling itself off to other businesses. If someone were to buy it, however, that person would need seriously deep pockets. SentinelOne has a market cap of around $4.2 billion, which is going to make a complete sale just a bit more complicated. In fact, the initial bites around such bait turned out to be less than impressive; SentinelOne’s early expectations haven’t been met.
It’s particularly telling that that’s the case, as just a week ago, SentinelOne made a serious advance in the cybersecurity market for remote workers. It, along with Netskope, brought out the SentinelOne Singularity App, which allows for better threat detection and response. It’s a combination of SentinelOne’s eXtended detection and response (XDR) systems, along with the secure access service edge (SASE) offerings from Netskope. That adds up to a potent protective force…and one that might ultimately be useless if the pushback against remote work continues.
At any rate, analysts are largely behind SentinelOne, as it’s currently rated a Moderate Buy by analyst consensus, backed up by 10 Buy ratings and 13 Hold. Further, SentinelOne stock buyers can get in on a slight upside potential of 7.16% thanks to its average price target of $17.67.
