Is It Time to Buy These 4 Cyber-Security Stocks?

#2 FireEye Inc (NASDAQ:FEYE)

 – Investors with Long Positions (as of December 31): 25

 – Aggregate Value of Investors’ Holdings (as of December 31): $243.87 Million

During the fourth quarter, the number of hedgies long FireEye fell by 12 and the value of their aggregate investments dove by 36%. Although down by more than 55% over the last year, FireEye Inc (NASDAQ:FEYE)’s stock has started to embark on an upward trend and the company further trimmed its loss per share expectations for 2016 during its recent Analyst Day. Piper Jaffrey recently upgraded the company to ‘Overweight’ from ‘Neutral’, as it believes FireEye will successfully transition to an ‘As-a-Service’ model, as well as in the company’s ability to drive international expansion. FireEye was also recently hired by the Bangladesh central bank to investigate the latest heist that it fell victim to. Millennium Management, which is led by Israel Englander, hiked its FireEye Inc (NASDAQ:FEYE) holding by 92% to 1.43 million shares during the fourth trimester.

#1 Palo Alto Networks Inc (NYSE:PANW)

 – Investors with Long Positions (as of December 31): 50

 – Aggregate Value of Investors’ Holdings (as of December 31): $1.15 Billion

Collectively, hedge funds in our database hold about 7.6% of Palo Alto Networks Inc (NYSE:PANW) outstanding float. While the security company’s stock price rose by 2.4% during the fourth quarter, the number of investment managers bullish on it increased by three and the aggregate value of their Palo Alto holdings rose by 26.4%. Analysts at Bernstein believe that the services that Palo Alto is offering, which include integrated security solutions involving next generation firewalls and end-point security, are much more advanced than the old point-based defense systems that other firms are offering. This is reflected in Palo Alto’s rapid growth, as it is capturing 43% of the market growth. Hence, Bernstein has set a price target of $200 for the company, which suggests upside of 29% from current trading levels. Jim Simons’ quant fund Renaissance Technologies boosted its stake in Palo Alto Networks Inc (NYSE:PANW) by 116% to 1.36 million shares during the fourth quarter.

Disclosure: None