Exploring Cognyte Software Ltd. (CGNT) Investor Profile: Who’s Buying and Why?

You're looking at Cognyte Software Ltd. (CGNT) and asking the right question: with a stock price rise of over 19% in the year leading up to November 2025, who is defintely buying and why are they suddenly interested?

The short answer is that sophisticated capital is accumulating shares, betting on the operational inflection point we saw in the fiscal year 2025 (FYE25) results. The company's full-year revenue hit a solid $350.6 million, a 12% jump, but the real story is the operational leverage: Adjusted EBITDA (a non-GAAP measure of core profitability) more than tripled to $29.1 million. That's a serious operational shift.

So, the big money is betting on a sustained turnaround. Institutional investors-the mutual funds, pension funds, and endowments-now collectively own around 47% of the company, with hedge funds holding a significant 22% stake. We've seen major players like Topline Capital Management, LLC and Edenbrook Capital, LLC maintain large positions, and some, like BNP Paribas Financial Markets, recently boosted their holdings by over 132.0%. Are these buyers seeing a deep value play in the investigative analytics sector, or is this just a trade on improved margins?

Who Invests in Cognyte Software Ltd. (CGNT) and Why?

If you're looking at Cognyte Software Ltd. (CGNT), the first thing to know is that this stock is overwhelmingly controlled by large, professional money managers. As of a November 2025 report, institutional investors own a significant 72.92% of the stock. This means the stock's movement is less about retail sentiment and more about the strategic decisions of a few dozen major funds.

The investor base is a mix, but the vast majority of capital comes from entities that manage money for others, not individual traders. This structure gives the company a certain stability, but it also means the stock price can be sensitive to large block trades when a major institution decides to shift its position.

Key Investor Types: The Institutional Dominance

The Cognyte shareholder base breaks down into three primary groups, with institutional money being the clear leader. You see a typical pattern for a growth-focused technology company that has recently begun to show strong profitability improvements.

• Institutional Investors: These are mutual funds, pension funds, and investment banks. They hold the lion's share, over 72% of the company. Their focus is generally long-term, and they look for strong fundamentals and a clear path to sustained profitability.
• Hedge Funds: These are more active, with one March 2025 report suggesting they own around 22% of the company. They often employ more complex strategies like activist investing or event-driven trades, looking to capitalize on operational turnarounds.
• Retail Investors: Individual investors hold the remaining portion. Their activity is important for daily trading volume, but their collective impact on the stock's long-term trajectory is less pronounced than the institutional block.

Top institutional holders, as of recent September 2025 filings, include Topline Capital Management, LLC, Edenbrook Capital, LLC, and American Capital Management Inc., all holding millions of shares. When firms like these hold such large positions, they are defintely paying close attention to management's execution.

Investment Motivations: The Turnaround Story

Investors are drawn to Cognyte Software Ltd. (CGNT) primarily because of a compelling turnaround story, shifting from high-growth, high-loss to profitable growth. The motivations are clear: they are buying a security analytics leader at a perceived discount, betting on the company's ability to convert its market position into consistent earnings.

Here's the quick math on the shift: For the fiscal year ended January 31, 2025, the company reported total Revenue of $350.6 million, an increase of approximately 12% year-over-year. More importantly, Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) more than tripled, reaching $29.1 million for FY 2025. That's a huge jump in operational efficiency.

• Profitability and Growth: The triple-digit growth in Adjusted EBITDA signals that the business model is gaining leverage, which is a massive draw for institutional money.
• Market Position: Cognyte is a global leader in investigative analytics software, a critical and growing segment of the cybersecurity and intelligence market. This strong moat (competitive advantage) is a key long-term factor.
• Capital Return: While the company doesn't pay a dividend, it is returning capital to shareholders through a share repurchase program, buying back stock (e.g., about 952,000 shares for approximately $9 million in Q1 FY26). This is a capital-efficient way to boost earnings per share (EPS) for investors.

Investment Strategies: Growth, Value, and Quants

The strategies employed by these investors are a blend of classic value and growth-at-a-reasonable-price (GARP) approaches, plus a strong presence of systematic trading firms. You see a clear split between patient, long-term holders and more tactical, short-term players.

The presence of major institutional holders like Topline Capital Management, LLC, and Edenbrook Capital, LLC, suggests a Value Investing or Activist approach. These firms are likely betting that the stock's current price (around $8.47 in November 2025) does not reflect the intrinsic value of the business, especially given the positive trend in profitability. They are long-term holders, often with Schedule 13G filings that indicate a passive stake over 5%.

On the other side, quantitative funds (or 'quants') like Cubist Systematic Strategies LLC and Trexquant Investment LP have been acquiring stakes. These firms use Systematic Trading strategies, which rely on algorithms to execute high-frequency trades based on technical indicators, market microstructure, or short-term momentum. Their buying and selling can contribute to the stock's daily volatility.

The bullish put/call ratio of 0.18 as of September 30, 2025, also indicates a strong expectation of a price increase among options traders, which aligns with a Growth/Momentum strategy. This is a stock where the big money is looking for a significant re-rating.

For a deeper dive into how the business generates its revenue, you should check out Cognyte Software Ltd. (CGNT): History, Ownership, Mission, How It Works & Makes Money.

Institutional Ownership and Major Shareholders of Cognyte Software Ltd. (CGNT)

You need to know who is really calling the shots at Cognyte Software Ltd. (CGNT), and the answer is clear: institutional investors. They hold the majority of the stock, which means their trading decisions are a primary driver of price action, and their strategic demands carry real weight. As of the Q3 2025 filings, institutional investors own approximately 75.05% of the company's float, a significant concentration that demands your attention. This high level of institutional ownership signals a belief in the company's long-term potential, but it also makes the stock vulnerable to a sudden, coordinated shift in sentiment.

Here's the quick math: with a market capitalization of roughly $618.05 million as of late 2025, a few large funds moving in or out can easily cause a sharp price swing. This is not a stock where retail investors set the direction. It's defintely a battleground for large capital.

Top Institutional Investors: Who's Buying and Why?

The institutional investor landscape for Cognyte Software Ltd. is dominated by a mix of hedge funds and traditional asset managers. These are the players who have done the deep-dive due diligence on the company's proprietary investigative analytics software and its large government contracts, like the over $20 million annual contract renewal with a tier-1 national security agency in the EMEA region reported in September 2025. They are buying into the turnaround story and the growth potential in the security software space.

The table below shows the largest institutional holders based on their Q3 2025 filings (as of September 30, 2025), giving you a precise view of who holds the most sway:

Changes in Ownership: Recent Accumulation and Distribution

Looking at the recent changes in ownership provides a clearer picture of near-term sentiment. While the overall institutional shares (long) saw a slight decrease of about 1.03% in the most recent reporting quarter, this masks significant buying activity by specific funds. You see some funds trimming their positions-perhaps taking profits after the stock's 19.13% increase between November 2024 and November 2025-but others are aggressively accumulating shares, signaling conviction in the current strategy.

For example, Topline Capital Management, LLC increased its stake by +2.4% (adding 168,329 shares) in Q3 2025. Even more telling are the smaller, but high-percentage, increases reported in November 2025 filings, which show fresh confidence:

• BNP Paribas Financial Markets boosted its position by a massive +132.0%.
• Quantbot Technologies LP grew its position by +106.5% in Q1.
• R Squared Ltd saw a significant increase of +183.2%.

This tells me that while the largest holders are mostly maintaining or slightly adding, a number of smaller, fast-moving funds are initiating or substantially increasing their bets. This accumulation suggests a belief in the company's ability to execute on its raised guidance for fiscal year 2025.

Impact of Institutional Investors on CGNT's Strategy

The influence of these large investors extends far beyond just moving the stock price. Institutional investors, especially hedge funds with a Schedule 13D filing (indicating an intent to influence management), play a direct role in corporate strategy and governance. Hedge funds, which hold an estimated 22% of the stock, often push for operational changes to create near-term value. This is where the rubber meets the road.

A concrete example of this is the activist push by Value Base Fund in 2024, which sought a board seat. This kind of pressure forces the board and management, like CEO Elad Sharon, to focus acutely on shareholder returns, aligning their compensation (which is approximately 80% at-risk) with performance metrics. You should track the company's progress on its financial health, which you can read more about at Breaking Down Cognyte Software Ltd. (CGNT) Financial Health: Key Insights for Investors, as this is what these large investors are scrutinizing.

What this estimate hides is the potential for a large institutional block sale to completely derail the stock's momentum, which is a constant risk with such a concentrated ownership structure. So, keep an eye on the 13F filings for any major distributions.

Next step: Track the next round of 13F filings (due in February 2026) to see if the recent buying momentum continues.

Key Investors and Their Impact on Cognyte Software Ltd. (CGNT)

If you're looking at Cognyte Software Ltd. (CGNT), the core takeaway is that this is a stock heavily owned by institutions-nearly 73% of the company's shares are held by institutional investors, which is a high concentration that often signals a belief in a long-term turnaround or sector stability. This institutional backing is what drives a lot of the stock's volatility and its strategic direction, especially when major holders decide to flex their muscle.

The Big Holders: Who's Backing the Investigative Analytics Play?

The investor profile for Cognyte Software Ltd. (CGNT) is dominated by a few key funds, many of which are value-oriented or special-situation investors. These aren't passive index funds; they've bought in because they see a clear path to improved operating performance, especially as the company shifts from a turnaround story to a growth-and-profitability story, evidenced by the significant financial improvements in the 2025 fiscal year (FYE25). For FYE25, the company reported revenue of $350.6 million and a non-GAAP operating income of $15.7 million, a huge swing from the prior year's loss. That's the financial hook for these funds.

The largest shareholders, based on filings as of September 30, 2025 (Q3 FYE26), are a mix of dedicated investment managers. Their collective stake gives them a massive voice in the boardroom. Here's a snapshot of the top institutional positions:

The funds are betting on continued operational leverage, which drove Adjusted EBITDA to more than triple to $29.1 million in FYE25.

Activism and Influence: The Boardroom Battle

The influence of these major investors isn't just theoretical; it's a concrete factor in Cognyte Software Ltd.'s governance. We saw this play out in the lead-up to the September 2024 annual shareholders meeting, which was a clear case of shareholder activism (when investors push for significant changes).

Value Base Ltd., which held roughly 9.33% of shares at the time, teamed up with Neuberger Berman Group LLC (then holding about 7.16%) to oppose the re-election of the Chairman and the CEO's compensation plan. This kind of coordinated move, especially from two major holders, directly pressures management to improve transparency and financial reporting, specifically calling out a lack of industry-standard key performance indicators (KPIs). That's a huge signal to the market: these investors are watching the numbers closely and demanding better accountability. Breaking Down Cognyte Software Ltd. (CGNT) Financial Health: Key Insights for Investors is a good place to see what they are looking at.

Recent Investor Moves and What They Mean

Investor moves in 2025 show a net accumulation trend, which is a bullish sign. Over the last 12 months, institutional inflows totaled $180.35 million, significantly outpacing outflows of $55.86 million. This suggests that more money is flowing into the stock than is leaving, reflecting optimism about the company's improved financial trajectory.

• Connor Clark & Lunn Investment Management Ltd. increased its stake by 19.3% in Q2 2025, adding 175,569 shares to hold over a million shares valued at approximately $10.01 million. That's a defintely strong vote of confidence.
• Topline Capital Management, LLC, one of the largest holders, was an active buyer in late 2024 (Q3 FYE25), snapping up over 969,000 shares in open market purchases across just two days in September 2024.
• Conversely, some funds like Senvest Management LLC have been trimming their positions recently, which is normal portfolio rebalancing but worth noting as a counter-signal.

The collective action here is one of accumulation, particularly from funds that specialize in value and special situations, indicating they believe the stock is still undervalued relative to its improving cash flow and operational stability. Your action here is to watch for continued accumulation in the next round of 13F filings, especially from the activist funds, as their buying or selling will directly correlate with their satisfaction with management's strategic execution.

Market Impact and Investor Sentiment

If you're looking at Cognyte Software Ltd. (CGNT), the quick takeaway is this: institutional interest is high, but sentiment is fractured. While the company delivered a massive improvement in profitability for the 2025 fiscal year (FY2025), a persistent valuation gap is fueling a rare mix of insider confidence, moderate analyst caution, and active shareholder dissent.

The institutional stake is substantial, sitting at approximately 72.92% of the stock, which signals market trust. Plus, insider sentiment is defintely positive, backed by high-impact open-market purchases totaling $25.4 million over the last year, with zero insider sales. That's a strong signal when the people who know the business best are putting their own cash in.

The Dual Nature of Major Shareholder Sentiment

The investor base is a mix of long-term believers and activist voices. On one hand, you have major holders like Topline Capital Management, Llc and American Capital Management Inc. maintaining large positions, suggesting confidence in the long-term investigative analytics market. On the other, you have activist shareholders like Value Base Ltd., which holds about 9.33% of the shares, pushing for significant board and governance changes.

This activism, supported by other large investors like Neuberger Berman (approx. 7.16% ownership), stems from the belief that the stock still trades at a significant discount despite improved financials. They argue the current board failed to unlock the company's true value, citing a share price drop of more than 75% since its 2021 public listing.

Here's a snapshot of the largest institutional buyers as of September 30, 2025, which shows who is holding the line:

Recent Market Reactions: Volatility on Earnings

The market's response to Cognyte Software Ltd.'s progress has been a bit choppy. The stock price, trading near $8.47 as of mid-November 2025, has shown sharp moves around earnings, reflecting the high-stakes nature of a turnaround story.

For example, following the strong Q4 FY2025 results (which ended January 31, 2025), the stock price surged by +21.05% in one day. This reaction was likely driven by the full-year figures: FY2025 Revenue hit $350.6 million, and Adjusted EBITDA more than tripled to $29.1 million. That's a clear demonstration of operating leverage (how a small increase in revenue can lead to a large increase in profit).

But the market can be tough. The stock saw a significant drop of -11.33% one day after the Q2 FY2026 earnings release in September 2025, even though the company beat both EPS and revenue estimates. This suggests that while financial performance is improving, investors are highly sensitive to any perceived weakness in the growth narrative or future guidance, especially concerning the revenue mix.

Analyst Perspectives and Forward-Looking View

The analyst community holds a 'Moderate Buy' to 'Hold' consensus on Cognyte Software Ltd. (CGNT), but the price targets suggest a compelling opportunity. The consensus price target is around $14.00, which represents a substantial potential upside of over 66% from the current stock price.

Here's the quick math: If the stock moves from $8.47 to the $14.00 target, that's a significant return. This optimism is generally tied to the company's transition to a software-centric model and its strong backlog. The put/call ratio (a measure of option trading sentiment) is low at 0.18, which is a bullish sign, indicating more investors are buying calls (betting the price will rise) than puts (betting it will fall).

• Focus on operating leverage: Non-GAAP operating income for FY2025 was $15.7 million, a major swing from a loss the prior year.
• Watch the recurring revenue base: Growth in this area is key to long-term stability and is a major focus for analysts.
• Monitor shareholder activism: The outcome of the board challenges will defintely influence strategic direction and capital allocation.

For a deeper dive into the company's underlying financial stability, you should check out Breaking Down Cognyte Software Ltd. (CGNT) Financial Health: Key Insights for Investors. Finance: Track the institutional ownership filings (13F) for Q3 2025 to see if the recent earnings volatility caused any major shifts in the top 10 holders by the next filing date.