Why SentinelOne Stock Is One of This Portfolio's Biggest Holdings Despite a 80% Drop in Price
Key Points
New York City-based Insight Holdings Group sold 3 million shares of SentinelOne in the third quarter.
The position shrank by an estimated $60.5 million from period to period.
Despite the sale, Insight still holds about 8.4 million SentinelOne shares valued at $148.4 million, making it the fund's third-largest reported holding.
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New York City-based Insight Holdings Group cut its position in SentinelOne (NYSE:S) by 3 million shares in the third quarter, contributing to a reduction in exposure of about $60.5 million, according to a November 14 SEC filing.
What Happened
According to a filing with the Securities and Exchange Commission dated November 14, Insight Holdings Group sold 3 million shares of SentinelOne (NYSE:S) in the third quarter. The transaction reduced the fund’s exposure to the cybersecurity company to 8.4 million shares with a quarter-end value of $148.4 million.
What Else to Know
The fund’s SentinelOne stake now represents 9.2% of reportable U.S. equity assets, up from 8.7% the previous quarter.
Top holdings after the filing:
- NYSE:HNGE: $541.3 million (33.4% of AUM)
- NASDAQ:UDMY: $266.6 million (16.5% of AUM)
- NYSE:S: $148.4 million (9.2% of AUM)
- NASDAQ:MSFT: $112.6 million (7% of AUM)
- NASDAQ:NVDA: $87 million (5.4% of AUM)
As of Wednesday, shares were priced at $14.56, down 39% over the past year and well underperforming the S&P 500, which is up 12% in the same period.
Company Overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $955.6 million |
| Net Income (TTM) | ($411.3 million) |
| Price (as of Wednesday) | $14.56 |
| One-Year Price Change | (39%) |
Company Snapshot
- SentinelOne offers an AI-powered cybersecurity platform (Singularity XDR) that provides autonomous threat prevention, detection, and response across endpoints, cloud workloads, and IoT devices.
- The company serves large enterprises and organizations seeking advanced, automated protection against a broad spectrum of cyber threats.
- It operates globally with a customer base spanning multiple industries, including finance, healthcare, and government sectors.
SentinelOne, Inc. is a technology company specializing in cybersecurity solutions for enterprises. Through its Singularity XDR platform, the company leverages artificial intelligence to deliver automated, real-time protection and response capabilities across multiple digital environments. SentinelOne's focus on autonomous security and integration across endpoints and cloud workloads positions it as a competitive player in the infrastructure software market.
Foolish Take
SentinelOne stock is still down roughly 81% from its 2021 highs, yet it remains one of the fund’s largest holdings. That combination points to trimming around the edges rather than a loss of conviction. The firm’s latest quarter helps explain why the position remains sizable. Revenue climbed 23% year over year to $258.9 million, while annual recurring revenue crossed $1 billion, also up 23%. More important for durability, non-GAAP operating margin turned positive at 7%, compared with a loss a year earlier, and free cash flow margin reached 6%. That signals a business moving past pure growth-at-all-costs mode.
Against other top holdings in the portfolio, SentinelOne still stands out as compared to more mature tech positions like Microsoft or Nvidia. Cutting exposure while keeping the stock at roughly 9% of assets suggests the fund is rebalancing risk rather than abandoning the thesis. The takeaway is straightforward: SentinelOne no longer needs perfect execution to justify long-term ownership. It needs steady ARR growth, improving margins, and discipline. On those metrics, progress is real, even if the stock price says otherwise.
Glossary
Assets Under Management (AUM): The total market value of investments managed by a fund or investment firm.
Exposure: The amount of capital or percentage of a portfolio allocated to a particular investment or asset.
Reportable Assets: Investments that must be disclosed in regulatory filings, typically for transparency and compliance.
Quarter-End: The last day of a fiscal quarter, used as a reference point for financial reporting.
Stake: The ownership interest or shareholding a person or entity has in a company.
Filing: An official document submitted to a regulatory authority, often containing financial or ownership information.
Autonomous Threat Prevention: Automated systems that identify and block cyber threats without human intervention.
Endpoints: Devices such as computers, smartphones, or servers that connect to a network and can be targeted by cyber threats.
Cloud Workloads: Applications, services, or processes running on cloud computing infrastructure.
IoT Devices: Internet-connected physical devices that collect and exchange data, such as sensors or smart appliances.
XDR (Extended Detection and Response): A cybersecurity solution that integrates data from multiple sources to detect and respond to threats.
TTM: The 12-month period ending with the most recent quarterly report.
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Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Microsoft, Nvidia, and SentinelOne. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
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