SentinelOne jumps amid report of sales process
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SentinelOne (NYSE:S) soared 14% amid a report that the cybersecurity company is exploring options, including a potential sale.
SentinelOne hired investment bank Qatalyst Partners to advise on talks with potential buyers, including private equity shops, according to a Reuters report on Monday, which cited people familiar. SentinelOne has a market cap of $4.2 billion.
Initial expressions of interest for SentinelOne (S) didn't meet the cybersecurity firm's expectations and it's possible that no deal will be reached, Reuters said. 
SentinelOne (S) and Qatalyst didn't immediately respond to Reuters request for comment.
CrowdStrike (CRWD) is a competitor of SentinelOne (S). Shares of SentinelOne are largely unchanged this year before Monday. CrowdStrike had jumped almost 40% year-to-date before Monday. Sentinel (S) shares plunged 35% on June 2 after the fim after the company cut its fiscal 2024 revenue outlook, prompting severl Wall Street downgrades. The firm also announced it would be cutting its workforce by 5%.
SentinelOne (S) short interest is 6.9%.
A potential SentinelOne (S) sale comes after cybersecurity firm Palo Alto Networks (PANW) reported Q4 earnings after the close on Friday, sending its stock soaring 15% with other peers moving in sympathy on Monday. 
Private equity firms have big buyers of cybersecurity companies in recent years including Vista Equity's $4.6 billion purchase of KnowBe4 earlier this year Thoma Bravo's $6.9 billion acquisition of SailPoint and $2.8 billion purchase of Ping Identity as well as Thomad Bravo's $12.3 billion takeover of Proofpoint in 2021.

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