#4. FireEye Inc. (NASDAQ:FEYE)
– Investors with long positions as of March 31: 28
– Aggregate value of investors’ long positions as of March 31: $280.40 Million
FireEye Inc. (NASDAQ:FEYE) also received some love from the hedge funds monitored by our team, as the number of asset managers with equity investments in FireEye climbed to 28 from 25 during the first quarter. Similarly, the aggregate value of those equity investments grew to $280.40 million from $243.88 million recorded at the end of December. Approximately 9% of the company’s outstanding shares were hoarded up by the 28 managers tracked by Insider Monkey. The shares of the business security software specialist are down 24% thus far in 2016, as the company’s mixed first-quarter financial results and leadership changes have weighed on the stock. FireEye’s revenue skyrocketed from a mere $11.8 million in 2010 to $623.0 million in 2015, which represents a compounded annual growth rate of roughly 121%. This exceptional revenue growth cannot remain at this elevated level unceasingly as FireEye’s revenue base goes higher. The company anticipates total revenue in the range of $780 million to $810 million for 2016, so the top-line growth is indeed decelerating. Israel Englander’s Millennium Management owns 1.04 million shares of FireEye Inc. (NASDAQ:FEYE) as of the end of March.
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#3. Juniper Networks Inc. (NYSE:JNPR)
– Investors with long positions as of March 31: 29
– Aggregate value of investors’ long positions as of March 31: $515.89 Million
The hedge fund sentiment towards Juniper Networks Inc. (NYSE:JNPR) declined notably in the first quarter of 2016, as the number of funds from our extensive system with stakes in Juniper dropped to 29 from 35 quarter-over-quarter. The value of hedge funds’ stakes in the networking products company dropped significantly to $515.89 million from $957.81 million quarter-over-quarter. Although Juniper Networks is not a pure-play information security company, it does operate in the highly-competitive security market. The company’s security product net revenue for the first quarter of the year dropped to $73.4 million from $92.8 million as a result of lower revenues from Enterprise and Cloud Providers, partially offset by higher revenues from Government. Just recently, analysts at Drexel Hamilton reduced their price target on Juniper Networks to $36 from $39 and reiterated their ‘Buy’ rating on the stock, saying that the stock still “represents an attractive value”. Juniper shares are down 16% year-to-date. Ric Dillon’s Diamond Hill Capital has 6.35 million shares of Juniper Networks Inc. (NYSE:JNPR) among its pool of holdings as of the end of March.
