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    How Investors May Respond To CyberArk Software (CYBR) Attracting Concentrated London Hedge Fund Interest

    Simply Wall St·12/26/2025 00:23:39
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    • In the past quarter, London-based Decagon Asset Management and Sand Grove Capital Management each initiated sizeable positions in CyberArk Software, making the identity security provider one of the largest holdings in both firms’ U.S. equity portfolios.
    • The fact that two separate London hedge funds independently concentrated so much capital in CyberArk highlights growing institutional conviction in its subscription-driven, recurring revenue model.
    • Next, we’ll examine how this concentrated institutional interest in CyberArk’s recurring revenue model could influence its existing investment narrative.

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    CyberArk Software Investment Narrative Recap

    To own CyberArk, you generally need to believe it can convert its identity security leadership and unified platform into durable, high‑margin subscription revenue, despite current losses and integration work. The concentrated new stakes from Decagon and Sand Grove reinforce confidence in that recurring model but do not fundamentally change the key near term catalyst, which remains execution on Venafi and Zilla integration, or the biggest risk, which is rising operational complexity in a fast moving security market.

    The most relevant recent announcement here is CyberArk’s Q3 2025 results, which showed strong top line growth to US$342.84 million but a widened net loss of US$50.44 million as investment and integration costs weighed on profitability. For investors watching these new hedge fund positions, the tension between rapid revenue growth, expanding ARR, and the drag from integration and operating expenses is central to how the story around CyberArk’s recurring revenue model may evolve.

    Yet investors should also be aware that integration risks around Venafi and Zilla could...

    Read the full narrative on CyberArk Software (it's free!)

    CyberArk Software's narrative projects $2.1 billion revenue and $96.6 million earnings by 2028. This requires 19.9% yearly revenue growth and a $262.0 million earnings increase from -$165.4 million today.

    Uncover how CyberArk Software's forecasts yield a $485.47 fair value, a 7% upside to its current price.

    Exploring Other Perspectives

    CYBR 1-Year Stock Price Chart
    CYBR 1-Year Stock Price Chart

    Four members of the Simply Wall St Community currently estimate CyberArk’s fair value between US$275 and about US$485, underlining how far opinions can stretch on this stock. Against that backdrop, the ongoing Venafi and Zilla integration effort could be a key swing factor for how these differing views on CyberArk’s long term earnings power eventually play out, so it is worth weighing several perspectives before deciding where you stand.

    Explore 4 other fair value estimates on CyberArk Software - why the stock might be worth 39% less than the current price!

    Build Your Own CyberArk Software Narrative

    Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

    • A great starting point for your CyberArk Software research is our analysis highlighting 1 key reward that could impact your investment decision.
    • Our free CyberArk Software research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate CyberArk Software's overall financial health at a glance.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.