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

You're looking at CyberArk Software Ltd. (CYBR) because the cybersecurity sector feels like a no-brainer, but you need to know which smart money players are defintely buying into the Identity Security market leader, and why they're shrugging off a high valuation. Our deep dive into the Q3 2025 filings shows institutional investors hold a massive stake, with approximately 93.33% of the company's shares owned by funds like BlackRock, Inc. and FMR LLC, despite some trimming of positions. This conviction is fueled by the company's explosive financial performance: Q3 2025 revenue hit $342.8 million, a 43% jump year-over-year, and Annual Recurring Revenue (ARR) is now at a staggering $1.341 billion as of September 30, 2025, up 45%. So, with institutional giants like Pentwater Capital Management LP establishing a massive new position of 3,665,000 shares, are they betting on the Identity Security platform becoming an essential utility, or is this a classic case of momentum chasing? The core question is simple: Can this growth rate sustain the stock's premium, and what does the recent $1.20 non-GAAP EPS beat tell you about their operating leverage moving into 2026?

Who Invests in CyberArk Software Ltd. (CYBR) and Why?

You're looking at CyberArk Software Ltd. (CYBR) and seeing a high-growth cybersecurity stock, but the real story is who controls the shares and what they expect in return. The direct takeaway is this: CyberArk is overwhelmingly an institutional play, with major asset managers and hedge funds betting on its market leadership in Privileged Access Management (PAM) and its incredible subscription revenue growth, especially with the recent Palo Alto Networks merger announcement as a near-term catalyst.

Honestly, the ownership structure is what dictates the stock's movement. Institutional investors-the mutual funds, pension funds, and asset managers-hold the vast majority of the company. Their stake is massive, sitting at approximately 91.84% of the stock, according to recent filings.

Key Investor Types: The Institutional Dominance

The investor base for CyberArk Software Ltd. is top-heavy, leaning heavily toward large institutions who view the stock as a core holding in their technology and growth portfolios. This high concentration means the stock is less volatile to the whims of individual retail investors, but it can move sharply based on institutional buying or selling, particularly from a few key players. The largest holders include giants like BlackRock, Inc., holding over 2.3 million shares, and other major firms like FMR LLC and T. Rowe Price Group, Inc.

Here's the quick math on the major players:

• Institutional Investors: Own ~92%, including passive index funds and active growth funds.
• Hedge Funds: A smaller but influential subset, often employing event-driven strategies. For example, Tudor Investment took a new position of ~234K shares valued at $113.1 million in the third quarter of 2025.
• Retail/Individual Investors: Hold the remaining minority stake, often buying in for exposure to the high-growth cybersecurity sector.

What this estimate hides is the difference between passive and active institutional money. Passive funds from firms like BlackRock, Inc. are simply buying to track an index, while active managers are making a defintely calculated bet on the company's future performance.

Investment Motivations: Growth, Market Position, and M&A

The core attraction is CyberArk Software Ltd.'s exceptional growth profile in a mission-critical cybersecurity niche. You don't buy this stock for dividends-it doesn't pay one-you buy it for growth and its dominant market position in Privileged Access Management (PAM). The latest financial results for Q3 2025 confirm this thesis, showing incredible momentum.

The numbers speak for themselves:

• Revenue Growth: Total revenue hit $342.8 million in Q3 2025, a jump of 43% year-over-year.
• Recurring Revenue: Subscription revenue was the star, soaring 60% year-over-year to $280.1 million in Q3 2025.
• Market Leadership: The company is the global leader in identity security, serving over half of the Fortune 500, which gives it a massive competitive moat.
• M&A Catalyst: The announced merger with Palo Alto Networks is a huge motivator, expected to create a powerful growth engine and broaden its market reach, expanding its total addressable market (TAM) by an estimated $10 billion to approximately $60 billion.

Plus, the shift to a subscription-based model is paying off, with Annual Recurring Revenue (ARR) reaching $1.341 billion, up 45% from the prior year. This recurring revenue stream provides excellent visibility into future cash flows, which is exactly what large institutions prioritize.

Investment Strategies in Play: Growth vs. Event-Driven

Given the company's profile, you see two main strategies at work. The first is classic, long-term Growth Investing. Funds like T. Rowe Price and FMR LLC are buying and holding for years, focusing on the sustained high growth rates and the company's ability to capture a larger share of the expanding identity security market. They accept the high valuation-a Price-to-Sales (P/S) ratio of around 20.85-because they believe future growth will justify the premium.

The second strategy is Event-Driven Trading, primarily from hedge funds. This group is focused on the near-term catalyst of the Palo Alto Networks acquisition. Some funds, like Baron Opportunity Fund, exited their position after the deal was announced, locking in a gain, while others, like Tudor Investment, took a new stake, likely betting on the deal's successful completion or a potential price pop leading up to it. This is a short-term, high-conviction play. Also, the company's move toward non-GAAP profitability-with Q3 2025 non-GAAP net income at $64.9 million-attracts investors looking for the transition from pure growth to profitable growth.

For a deeper dive into the company's long-term vision, you should review the Mission Statement, Vision, & Core Values of CyberArk Software Ltd. (CYBR).

So, the action for you is clear: if you are a long-term growth investor, the fundamentals are strong, but if you are a short-term trader, the M&A timeline is your primary focus. Finance: track the Palo Alto Networks deal closure date and its impact on the target price of $455.96.

Institutional Ownership and Major Shareholders of CyberArk Software Ltd. (CYBR)

You're looking at CyberArk Software Ltd. (CYBR) and asking who the real players are, and honestly, the answer is clear: institutional money dominates this stock. This is a high-conviction, high-ownership name, meaning the big funds are the primary drivers of its valuation and strategy. As of the most recent filings, institutional investors hold an overwhelming 94.14% of the company's shares, a massive concentration that speaks volumes about its position in the cybersecurity sector.

This level of institutional backing, with a market capitalization around $24.60 billion as of November 2025, means that retail investors are essentially riding the coattails of giants like BlackRock and other major asset managers. You need to watch their moves closely, as their collective buying or selling can move the stock price dramatically. It's an institutional playground.

Top Institutional Investors and Their Stakes

The investor profile for CyberArk is a roll call of the world's largest asset managers and hedge funds. These aren't small, speculative players; they are long-term holders and strategic funds who see the value in CyberArk's privileged access management (PAM) and identity security platforms. The top holders, based on Q3 2025 13F filings, are a mix of passive giants and active managers.

Here's a snapshot of the largest reported institutional positions as of September 30, 2025, which gives you a clear picture of who holds the most sway:

While the exact dollar values fluctuate with the share price-which was around $487.93 on November 14, 2025-the share count shows the defintely influential voting power held by these firms.

Recent Shifts and Ownership Dynamics

Analyzing the most recent quarterly filings reveals a dynamic environment, which is expected given the company's strong revenue growth of 42.8% year-over-year in Q3 2025, despite a forecasted negative EPS of $-0.47 for the fiscal year. Institutional investors have been actively repositioning.

A few key moves stand out from the September 30, 2025, reporting period:

• BlackRock, Inc. significantly reduced its stake by -42.846%, shedding over 1.7 million shares.
• Pentwater Capital Management LP and Hbk Investments L P established large, new positions, signaling a fresh, strong conviction from major hedge funds.
• UBS Group AG substantially increased its holdings, adding over 930,000 shares.
• FMR LLC also decreased its position by -22.779%, cutting over 582,000 shares.

The simultaneous large sales by some traditional asset managers (like BlackRock and FMR) and the massive new buys from hedge funds (like Pentwater and HBK) suggest a short-term divergence in strategy. Some may be taking profits after the stock's strong run, while others are piling in, perhaps anticipating continued momentum or a strategic event.

Impact of Institutional Investors on Strategy and Stock Price

The sheer volume of institutional ownership-over 9 out of every 10 shares-makes these investors the de facto governors of CyberArk Software Ltd. (CYBR). Their impact is twofold: on stock price and on corporate strategy.

On the stock price side, their accumulation drives momentum, but their occasional, large-scale selling can create volatility. For strategy, their role is paramount, especially in major corporate actions. A perfect, recent example is the proposed acquisition by Palo Alto Networks (PANW). On November 13, 2025, CyberArk shareholders approved the merger proposal, a critical milestone that would not have been possible without the support of the institutional majority.

These institutions are the ones who ultimately approved the company's strategic direction, including the decision to merge. Their vote confirms their belief in the long-term value of the combined entity. For a deeper dive into the company's strategic foundation that led to this point, you can review the Mission Statement, Vision, & Core Values of CyberArk Software Ltd. (CYBR).

Here's the quick math on influence: with nearly all shares held by institutions, any activist investor (a Schedule 13D filer) needs only a small percentage to gain a seat at the table, but the passive giants (Schedule 13G filers) like BlackRock still hold the power to approve or reject major deals like the PANW acquisition. Your action is to track the filings for the next quarter to see if the hedge fund accumulation continues, which would signal a strong belief in the merger's success.

Key Investors and Their Impact on CyberArk Software Ltd. (CYBR)

You're looking at CyberArk Software Ltd. (CYBR) and wondering who the big players are and what their recent moves mean for your investment. The short answer is that institutional money dominates this stock, and their recent activity is overwhelmingly driven by the pending acquisition by Palo Alto Networks, turning the investment thesis into a merger arbitrage play.

As of the third quarter of 2025, institutional investors hold a commanding position, owning approximately 94.14% of the company's shares. This high concentration means a few major funds have significant sway, especially when a major event like a $25 billion acquisition is on the table.

The Mega-Funds: Stability and Strategic Exits

The largest institutional holders are exactly who you'd expect: the mega-asset managers who track major indices and hold massive, diversified portfolios. These firms provide a foundational stability to the stock, but their recent trading signals a shift in strategy post-acquisition announcement.

• BlackRock, Inc.: A top holder, BlackRock, Inc. held 2,305,165 shares as of September 30, 2025. However, they significantly reduced their stake in Q3 2025 by 42.846%, selling over 1.7 million shares.
• FMR LLC: FMR LLC, another giant, also cut its position in Q3 2025 by over 22%, shedding 582,419 shares.

When you see major index-tracking funds like BlackRock and FMR LLC selling, it's not defintely a bearish signal on the company's fundamentals, but rather a strategic rebalancing. They are likely taking profits or adjusting their exposure to reflect the stock's new status as an acquisition target, where the upside is capped by the deal price. It's a classic example of the market efficiently pricing in a known event.

The Arbitrage Play: Hedge Funds and Recent Buys

The most telling activity in the 2025 fiscal year comes from the hedge fund community. Their recent, massive purchases are a clear indication of a merger arbitrage strategy, betting on the deal closing successfully. This is where the real near-term action is.

Here's the quick math on the arbitrage opportunity: CyberArk Software Ltd. shareholders approved the acquisition by Palo Alto Networks on November 13, 2025. The deal is valued at approximately $25 billion, offering $45 in cash and 2.2005 shares of Palo Alto Networks for each CyberArk share. The stock price, which was around $487.93 per share as of November 14, 2025, reflects the market's expectation of this deal closing.

The new positions taken by major hedge funds are striking:

Pentwater Capital Management LP and Hbk Investments L P, in particular, established large, new positions in Q3 2025. This isn't a long-term play on CyberArk's organic growth; it's a calculated bet on the deal's finalization. Their influence is now purely focused on ensuring the merger closes on the agreed-upon terms, which is a different kind of pressure than traditional activist investing.

Investor Influence: From Growth to Acquisition

Before the acquisition announcement, investor influence centered on the company's transition to a subscription model and its growth in Annual Recurring Revenue (ARR), which hit $1.341 billion in Q3 2025. Now, the focus has completely shifted. The collective investor body, especially the arbitrage funds, acts as a powerful check on the deal's execution.

Their stake minimizes the risk of a competing bid (a 'white knight') and locks in the current valuation, effectively putting a floor and a ceiling on the stock price until the merger closes. For any investor, the primary question is no longer about the next product launch, but about the deal spread-the difference between the current stock price and the implied value of the Palo Alto Networks offer. You can learn more about the strategic rationale that drove this decision in the Mission Statement, Vision, & Core Values of CyberArk Software Ltd. (CYBR).

What this estimate hides is the regulatory risk. If the merger faces unexpected antitrust hurdles, these large arbitrage positions could unwind quickly, causing a sharp drop. So, while the shareholders approved the deal, the real risk lies in the regulatory review process.

Market Impact and Investor Sentiment

The investor profile for CyberArk Software Ltd. (CYBR) is currently defined by two major forces: a deep-seated institutional conviction in its core business and the near-term price anchor of the proposed acquisition by Palo Alto Networks. You should know that institutional investors-the big money managers-hold a dominant 91.84% of the company's stock, which signals strong, long-term confidence in its identity security platform. That's a huge slice of the pie.

This high institutional ownership points to a fundamentally positive sentiment, even with the acquisition news. Firms like BlackRock, Inc., holding a 4.57% stake as of September 29, 2025, and FMR LLC are top shareholders. The buying activity in the first half of 2025 was intense, showing that these sophisticated players saw significant value before the acquisition announcement.

Here's the quick math on that buying conviction:

• Price T Rowe Associates Inc. MD raised its stake by a staggering 1,598.3% in the first quarter of 2025.
• Invesco Ltd. increased its position by 12.2%, acquiring an additional 122,423 shares.
• JPMorgan Chase & Co. boosted its holdings by 18.7%.

These moves, totaling hundreds of millions of dollars in value, happened because the core business was executing flawlessly. If you want to understand the foundation of this company's appeal, you should review its operational history and strategy, which you can find in more detail here: CyberArk Software Ltd. (CYBR): History, Ownership, Mission, How It Works & Makes Money.

Recent Market Reactions and Acquisition Dynamics

The most defining market reaction in 2025 was the stock's surge following the news of the impending acquisition by Palo Alto Networks (PANW). On July 30, 2025, the stock price jumped 13.5% after reports surfaced about the deal, which is valued at approximately $25 billion in equity. This is a massive premium for a cybersecurity pure-play.

The stock continued to trade near its 52-week high of $526.19 in early November 2025, hitting an all-time high of $494.53 on October 2, 2025. This shows the market views the acquisition as highly probable. The deal, which involves $45.00 in cash and 2.2005 shares of Palo Alto Networks common stock per CyberArk Software Ltd. share, now acts as a ceiling for the stock price. The price won't stray far from the implied deal value unless the market believes the acquisition will fall apart.

The company's Q3 2025 financial results, announced in early November 2025, reinforced the positive sentiment that led to the acquisition. Total revenue was $342.8 million, a 43% increase year-over-year, and Annual Recurring Revenue (ARR) grew 45% to reach $1.341 billion. That's a strong growth story, defintely.

Analyst Perspectives on Key Investor Impact

Analyst perspectives on CyberArk Software Ltd. have become nuanced due to the pending acquisition. Before the deal, the consensus was a clear Buy, driven by the company's strong shift to a subscription model and its leadership in Privileged Access Management (PAM). Now, the view is more mixed, often settling on a Hold or Moderate Buy consensus from the 33 analysts covering the stock.

The average price target from analysts sits around $444.79 to $455.96, with a high forecast of $551.00 from Needham in July 2025. But here's the key: the acquisition itself is driving a mechanical shift in ratings.

When an acquisition is announced, analysts often downgrade a stock from 'Buy' to 'Hold' or 'Market Perform.' They do this not because the company is performing poorly, but because the upside is capped by the acquisition price. For example, JMP Securities and Canaccord Genuity both downgraded the stock in light of the pending merger. Their analysis shifts from valuing the company's future standalone growth to assessing the risk-adjusted return of the deal spread.

The strong institutional ownership, especially the major buying in early 2025, essentially validated the business model and growth trajectory that Palo Alto Networks is now paying a premium for. The Q3 2025 non-GAAP net income of $64.9 million, or $1.20 per diluted share, beat analyst estimates of $0.92, confirming the fundamental strength that attracted the buyer in the first place. You're seeing a classic case where strong operational performance (the 'why' of the institutional buying) leads directly to a strategic takeout (the 'why' of the recent market reaction).