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Cybersecurity ETFs Surge on Strong Symantec, Proofpoint Q4 Results

This article was originally published on ETFTrends.com.

Cybersecurity stocks and sector-related ETFs popped Friday on fourth quarter earnings beats from players in the industry, including Symantec (SYMC) and Proofpoint (PFPT).

On Friday, the ETFMG Prime Cyber Security ETF (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 (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.

Separately, Symantec' Chief Financial Officer Nicholas Noviello will be stepping down to pursue other opportunities, a move that follows the conclusion of an accounting probe last year, the Financial Times reports.

“Nick’s financial expertise, tireless efforts to drive integration and transformation across the Company, and focus on improving our business systems and operational processes have laid a strong foundation for Symantec’s future,” chief executive Greg Clark said in a statement.

SYMC makes up 3.4% of HACK's portfolio and 2.9% of CIBR.

For more information on the tech sector, visit our technology category.

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