Because insiders have been selling shares of overvalued cybersecurity stock Mimecast (NASDAQ:MIME) lately, the stock could witness a price pullback in the near term. However, given the rising demand for advanced cybersecurity solutions to address increasing cyber threats in the digital era, we think MIME’s industry peers NortonLifeLock (NASDAQ:NLOK), Trend Micro (OTC:TMICY), and Radware (NASDAQ:RDWR) are, in contrast to MIME, well-positioned to soar in price the coming months. Read on.Shares of Mimecast Limited (MIME), U.K.-based email security and cyber resilience company, have gained 13.2% in price over the past week based on investors’ optimism over its inclusion in the SPDR S&P Mid Cap 400 ETF Trust (MDY). Although MIME’s product portfolio is sufficiently advanced to provide comprehensive security coverage for Microsoft (NASDAQ:MSFT) Corporation’s (MSFT) Office 365 cloud email, three of MIME’s systems suffered breaches during the January 2021 attack and potentially exfiltrated certain encrypted service account credentials created by customers.
Furthermore, insiders at MIME have sold $1.1 million of stock over the past 12 months. This, combined with its overvaluation, might lead to price decline in the near term. MIME’s 7.69x forward Price/Sales is 85.9% higher than the 4.13x industry average.
However, because the need for cybersecurity solutions is rising with the increasing use of cloud platforms for remote working and ongoing digital transformation, the cybersecurity industry should witness solid growth. Organizations worldwide are spending heavily on cybersecurity solutions to protect critical data. The global cybersecurity market size is expected to grow at a 9.7% CAGR to $345.4 billion by 2026.