Fire-Eye (FEYE) seeing some large, notable insider buys recently into the earnings move lower and name with a lot of bullish open interest, potentially setting up an attractive risk/reward for a return to 52-week highs. On 8/26, the COO bought $466K in stock at $18.64 and follows $850K in stock bought on 8/10 and 8/18 at $17-$17.80. The CRO also bought $440K in stock at $16.92 on 8/11 and a director bought stock on 8/23 at $17.38. FEYE had a buyer of 1000 March $20 calls on 8/26 and follows over 2,450 June $15 puts sold earlier in the week. The June $17 puts, January $18 puts both also sold to open while the December $22 calls and Sept. $18 calls bought recently. The Sept. $20 calls have over 8,300 in open interest from buyers. Shares gapped down to around $16.50 after their recent report, just above the top of 2020 value and big area of support. The current gap fill has room back to $20 and VPOC for the current year. The $4.4B company trades 5.2X sales and 34.75X FCF with mid-20% growth. FEYE announced plans in June to sell their slower-growth products business to Symphony for $1.2B and shift their overall focus towards the better, faster-growing Mandiant franchise. The product business has struggled due to the lag in legacy, on-premise customers to move into the subscription services. FEYE hopes the separation will reduce some of the channel friction between the two sides and allow MPS to trade more in-line with peers. Mandiant grew 25% between 2018 and 2022 with strong 55% gross margins. They see a massive TAM with ‘Cyber Defense as a Service’ growing to near $65B by 2023 and up from $45B. Analysts have an average target for shares of $22 with a Street High $27. Baird cautious on 8/6 and wants to see FireEye prove its ability to drive success, particularly on the subscriptions side, with the standalone business. Short interest is 6.5%. Hedge fund ownership fell marginally last quarter. Shapiro Capital buying another 2M shares.