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Why Tenable Holdings Stock Jumped 20% Last Month

By Keith Noonan – Updated Jun 6, 2020 at 1:32PM

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The cybersecurity stock has gone from hitting a lifetime low to being up 23.5% year to date in less than three months' time.

What happened

Shares of Tenable (TENB -0.40%) climbed 20% in May, according to data from S&P Global Market Intelligence. The double-digit gains for the stock last month came on the heels of 19.2% increase for the company's share price in April. 

^SPX Chart

^SPX data by YCharts

Tenable stock was pushed to a lifetime low amid the coronavirus-related sell-offs that disrupted the market in March, but the stock rebounded thanks first-quarter results that topped the market's expectations and momentum for the broader. Market recovery was the biggest factor in the cybersecurity stock's gains last month, but shares may have also gotten a bit of a lift from management's participation in a conference for analysts and investors.

A person touching a lock icon.

Image source: Getty Images.

So what

Tenable CEO Amit Yoran and CFO Steve Vintz participated in the 48th Annual J.P. Morgan Global Technology, Media and Communications Conference on May 14. The executives went back over some of the first-quarter results that the company published in April, outlined long-term growth opportunities stemming from business increasingly moving to the digital sphere, and indicated that it was seeing encouraging momentum for new deals in the current quarter.  

Now what

Tenable stock has dipped early in June despite a pronounced rally for the broader market. The cybersecurity company's shares are down roughly 5% in the month so far.

^SPX Chart

^SPX data by YCharts

The cybersecurity company withdrew its full-year guidance when it reported first-quarter results at the end of April, but it did issue targets for the current quarter. Management expects second-quarter sales to come in between $101 million and $103 million, representing year-over-year growth of 19.4% at the midpoint of the target.

Tenable is targeting non-GAAP (adjusted) loss per share between $0.04 and $0.06 based on 99.8 million basic weighted shares outstanding. The company posted an adjusted loss of $0.10 per share in the prior-year quarter.

Tenable is valued at roughly 6.9 times the average analyst target for this year's sales. 

Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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