Why SentinelOne Shares Are Trading Lower Today?

Analysts continue to see compelling upside on SentinelOne S despite lowering price targets following the Q3 beat and a solid outlook.

• Piper Sandler analyst Rob Owens lowered the price target to $55 from $65, implying 16.6% upside, and kept a Neutral. 
• The analyst says compression of high-multiple stocks and a lock-up of 200 million shares expiring in two days will likely put pressure on the shares.
• B of A Securities analyst Tal Liani maintained a Buy and lowered the price target from $77 to $67, implying a 42% upside.
• Deutsche Bank analyst Patrick Colville lowered the price target to $63 from $77, implying a 33.6% upside, and kept a Buy. 
• The analyst says the quarter indicates SentinelOne is "capturing investment in the buoyant endpoint market."
• Wells Fargo analyst Andrew Nowinski lowered the price target to $60 from $80, implying a 27% upside, and kept an Overweight. 
• The analyst notes SentinelOne reported "very strong" Q3 results, with ARR growth accelerating to 131% year-over-year.
• Nowinski notes that the stock was down about 10%, likely attributable to the deceleration in new customer adds.
• While he believes the growth in large customers is impressive, the analyst would not expect it to impact the new customer acquisition engine. 
• The stock is also likely under pressure due to the impending lock-up expiration on December 9, in which 200 million shares will be freely tradable, Nowinski adds.
• Price Action: S shares traded lower by 7.62% at $47.15 on the last check Wednesday.