SentinelOne heads into its June 25 earnings report with a peculiar tension: short sellers have been pulling back steadily, yet the company's own founder and CEO has been selling shares almost every week.
The insider picture is the standout this week. CEO Tomer Weingarten sold shares on June 15, June 11, and June 8 — three separate transactions totalling roughly 154,000 shares and approximately $2.3 million in proceeds. He sold again in early May, including a $3.5 million block on May 4. Net insider activity over the past 90 days runs to nearly $9.6 million in net sales across all insiders, with the Chief Legal Officer and Chief Accounting Officer also selling on June 8. These look like scheduled plan sales rather than panic exits, but the cadence — week after week, ahead of a closely-watched print — is worth noting. The stock closed Monday at $15.03, down about 11% over the past month, so executives have been selling into weakness.
Short sellers are, in contrast, stepping back. Short interest has fallen roughly 4% week-on-week to 6.65% of the free float — still a meaningful position, but down from nearly 8% in early May. The borrow market is exceptionally loose. Availability has widened sharply since mid-May and now reads above 2,100%, meaning there are more than 21 shares available to borrow for every one already lent out. Cost to borrow is a negligible 0.5%, even after ticking up about 8% on the week. The lending market is offering no friction to either side — shorts can add easily, but there's no squeeze pressure either. Options positioning leans constructive: the put/call ratio at 0.25 is well below the 52-week high of 0.35, sitting roughly one standard deviation above its 20-day mean of 0.22 — a modest uptick in hedging, but nothing close to defensive extremes.
The Street remains constructive in aggregate, though the post-earnings analyst activity from late May was genuinely mixed. After the last results, buyers raised targets — Needham moved to $20, Canaccord Genuity to $18 — while neutrals like JPMorgan trimmed from $20 to $18 and Barclays cut from $19 to $16. The mean target sits near $19, about 27% above the current price, which sets a reasonable floor under the bull case. The bulls point to 20% revenue growth, rising multi-product adoption, and management's guidance for a 6 percentage-point pickup in new ARR for fiscal 2027. The bears lean on five consecutive quarters of gross margin compression and an operating margin that is expected to drop a further 390 basis points in the current quarter. ORTEX factor scores reflect the ambiguity: EPS momentum over 30 days ranks in the 89th percentile, but the short-score rank sits at just 37 and the analyst recommendation differential scores a lowly 5 — meaning the buy consensus is not unusual versus the universe.
Earnings history adds caution. The last two prints each produced meaningful negative moves: down 1.2% and then down 7.8% the next day, with a 5-day slide of 11.5% and 7.9% respectively following those releases. Among correlated peers this week, ZS was down 2.4% on the day while DT and AVPT held positive ground — S's 1% weekly decline is broadly in line with the group, though ADSK and PTC saw sharper drops of 10% and 14% respectively, suggesting software-sector pressure is the backdrop rather than anything SentinelOne-specific.
With results due June 25, the setup is one where short covering has already done some work and borrow conditions are relaxed — meaning a negative surprise would need to rebuild that short base from scratch rather than trigger a squeeze. The June 25 print will be watched most closely for gross margin trajectory and whether new ARR guidance holds.
See the live data behind this article on ORTEX.
Open S on ORTEX →ORTEX Market Intelligence content is generated by AI from a snapshot of ORTEX's proprietary data. Content is informational only and does not constitute investment advice.
