5 Best Cybersecurity Stocks to Buy Now

4. Splunk Inc. (NASDAQ:SPLK)

Number of Hedge Fund Holders: 47

Splunk Inc. (NASDAQ:SPLK) was incorporated in 2003 and is headquartered in San Francisco, California. The company provides software and cloud solutions that deliver and operationalize insights derived from data generated by digital systems in the United States and internationally. Splunk Inc. (NASDAQ:SPLK) recently reaffirmed its Q3 and FY23 guidance. It is one of the best cybersecurity stocks to buy now. 

On September 27, Canaccord analyst Kingsley Crane told investors that Splunk Inc. (NASDAQ:SPLK) CFO Jason Child is leaving the company in early November. The analyst said while the timing of the CFO’s departure is unexpected, it will not have a meaningful impact on shares. He reiterated a Buy rating and a $130 price target on Splunk Inc. (NASDAQ:SPLK) shares.

Among the hedge funds tracked by Insider Monkey, Splunk Inc. (NASDAQ:SPLK) was part of 47 public stock portfolios at the end of Q2 2022, compared to 42 funds in the preceding quarter. Alex Sacerdote’s Whale Rock Capital Management is the biggest stakeholder of the company, with 2.7 million shares worth $243 million. 

Here is what Vulcan Value Partners has to say about Splunk Inc. (NASDAQ:SPLK) in its Q2 2022 investor letter:

“Splunk Inc. is a software company for managing and gaining insights from data. Despite being a material detractor during the quarter, Splunk reported better than expected revenue, margins and guidance. Revenue increased 34% and the company produced a 20% free cash flow margin. Additionally, Gary Steele started his position as the new CEO. Gary was the founder of Proofpoint and led that company for 20 years prior to selling it to Thoma Bravo for $12 billion last year.

We believe Splunk’s long-term prospects remain strong. As they have transitioned their customers to the cloud, the company is generating good free cash flow and its margins are increasing and have the potential to expand. The company has a solid competitive position, a large market, and we expect its growth to be strong and durable.”