SentinelOne Insider Selling? Why Investors Should Stay Bullish
SentinelOne (NYSE: S) insiders are selling stock in Q1, but investors should buy because of cybersecurity trends, the company’s position in the cybersecurity industry, institutional and analyst trends, the deep value, and the insider trends.
Insiders are selling in Q1, but the data from MarketBeat.com indicates their activity has declined from the peak set in early 2024; Q1 activity is tracking at a six-quarter low, and the broad-based, small sales align with other companies that utilize share-based compensation. The most significant seller is the CEO, and even his contribution is barely more than $4 million, about 0.06% of the market cap, with shares near $18.75. That leaves the insiders with 5.6% of the stock and significant skin in the game.
SentinelOne Is Well-Positioned With End-Point Security
SentinelOne is well-positioned within the cybersecurity world, focusing on end-point protection, the cloud, and identity protection. Its Singularity Platform is a unified platform providing AI-assisted security across networks. Advantages include real-time threat detection, automated responses, AI assistance, and remediation that reduce response times and minimize disruptions, cost, and revenue impact for affected businesses.
Highlights from FY2024 include a slowdown in growth, yet it remained strong at 30%, with improved margins. Margin is critical to the outlook because the company reached profitability in Q2, ahead of schedule, and is on track to improve profitability in F2026 and F2027.
Institutional Buying Offsets SentinelOne Insider Selling
The institutional activity of SentinelOne stock is very bullish. The institutions have bought on balance since Q4 2024; buying peaked in 2023, hit a low point in 2024 and then ramped to a two-year high in Q1 2025. The spike in Q1 aligns with buying activity in other leading cybersecurity and tech names and points to higher share prices as time progresses.
Institutional activity netted 1.6% of the market cap in the first 10 weeks of the quarter, lifting total ownership to over 90%. This is a strong tailwind for the market, strengthened by the broad base of buyers, including numerous small and boutique investment firms and major firms like Royal Bank of Canada, Deutsche Bank, BNP Paribas, and Stifel Financial Corporation.
Analysts moderated their price targets following the Q4 results and F2026 guidance but remain steadfast in their consensus of Moderate Buy and forecast for a 40% upside. The few revisions tracked by MarketBeat include price target reductions but to a range bracketing the consensus of $28. The takeaway from the chatter is that the long-term outlook remains intact, but headwinds and clouds have impacted the near-term outlook.
SentinelOne Is a Deep Value Relative to Its Growth Outlook
SentinelOne’s stock price is a headwind compared to the F2026/C2025 earnings, but it is pricing in a significant amount of growth. The company is forecasted to sustain a high-double-digit revenue CAGR or compound annual growth rate through 2035. Growth will slow from a high triple-digit pace this year to a still high 25% in 2035, leaving it under 5x forward earnings. In this scenario, the stock price could rise by 300% in the next ten years and still be only fairly valued relative to the slower-growing S&P 500.
SentinelOne’s stock price action is tepid in early March. The market is set up to continue its fall, but macroeconomic and non-fundamental factors drive bearish sentiment. Given the analysts' sentiment, the market could rebound at any time, and it could be a robust rebound. The analysts moderate their targets, but the market response is an overreaction in that the price moved well below the analyst's lowest target, setting it up for a minimum gain of 18%.
