Cybersecurity stocks and sector-related ETFs popped Friday on fourth quarter earnings beats from players in the industry, including Symantec (NasdaqGS: SYMC) and Proofpoint (NasdaqGS: PFPT).
On Friday, the ETFMG Prime Cyber Security ETF (NYSEArca: HACK), the first exchange traded fund dedicated to the fast-growing cyber security space, increased 1.5% and the First Trust NASDAQ CEA Cybersecurity ETF (NasdaqGM: CIBR), which also tracks companies engaged in the cybersecurity segment of the tech and industrials sectors, gained 1.5%.
Fueling the gains in the category, software maker Proofpoint revealed earnings that topped estimates, along with a slight revenue beat for the fourth quarter. Meanwhile a number of analysts have raised their outlook on the company.
For example, Club raised Proofpoint from a “hold” to a “buy”. While Wells Fargo & Co reduced their price target on Proofpoint, the bank had a “outperform” rating for the company. Morgan Stanley reduced also their price target on Proofpoint but set a “buy” rating for the company, according to Fairfield Current.
PFPT shares jumped 11.6% Friday. PFPT makes up 3.9% of HACK’s underlying portfolio and 3.1% of CIBR’s portfolio.
Symantec Shares Surge
Additionally, Symantec shares jumped 9.0% Friday after announcing quarterly earnings that surpassed expectations. the company reported earnings of $65 million or 10 cents a share, compared with a profit of $1.34 billion, or $2.01 a share, a year ago, according to The Street.