Fundsmith 13F: Cuts Qualys (QLYS) Stake by $47M

Institutional investor Fundsmith sharply reduced its investment in cybersecurity firm Qualys, Inc. (NASDAQ:QLYS). According to the fund's latest Form 13F filing with the SEC for the period ending May 15, 2026, the firm sold 421,729 shares of the technology company. This represents a 65.1% reduction in its total holding, leaving it with a much smaller footprint in the software infrastructure space.

Before this round of selling, Fundsmith held 647,806 shares of the Foster City, California-based company. Following the transaction, the fund holds 226,077 shares. The remaining position carried a reported value of $25.15 million at the end of the reporting quarter. Because 13F filings are backward-looking documents, they show a snapshot of holdings at the end of the quarter and may not reflect Fundsmith's current investment strategy or actual holdings today.

On Saturday, Qualys stock was priced at $111.24. The shares have traded in a wide 52-week range, hitting a low of $74.51 and reaching as high as $201.54. The stock is currently trading below its 50-day moving average of $168.80 and its 200-day moving average of $126.26. The company has a price-to-earnings ratio of 31.48, while its forward P/E ratio stands at 21.42, showing what investors are paying relative to expected future profits.

Recent Earnings

Qualys last reported annual revenue of $702.98 million, reflecting revenue growth of 11% compared to the prior period. The company showed a net margin of 29.38% and a return on equity of 38.59%. Its earnings per share came in at $5.75. Shareholders are looking ahead to the next earnings release, which is scheduled for November 3, 2026.

CEO Sells Shares

In recent insider activity, Qualys CEO and President Sumedh S. Thakar parted with some of his holdings. On October 14, 2026, Thakar sold 3,200 shares at an average price of $190.36, resulting in a total sale value of $609,147.52. This transaction was carried out under a pre-arranged trading plan, which allows corporate executives to sell a predetermined number of shares at set times to avoid conflicts of interest.

Analysts Set New Price Targets

Several research firms have weighed in on Qualys recently. On October 13, 2026, TD Cowen kept its Hold rating on the stock and adjusted its price target to $200.00 from $170.00. Earlier, on August 5, 2026, Scotiabank maintained a Sector Outperform rating with a $220.00 target, while Piper Sandler kept a Neutral rating with a $175.00 target. On the same day, Truist Securities stuck with a Hold rating and a $185.00 target, and Morgan Stanley maintained an Underweight rating with a $130.00 target. Currently, the consensus among 18 analyst opinions is a hold, with a average price target of $179.36.

Cybersecurity and Cloud Defense

Qualys provides cloud-based security and compliance software. Its main product, the Enterprise TruRisk platform, helps businesses scan their digital networks, identify software vulnerabilities, and patch them before hackers can exploit them. As companies shift more of their operations to the cloud, tools like Qualys' TotalCloud platform have become central to modern corporate defense systems.

What to Watch

With Fundsmith cutting down its stake so significantly, market observers will watch upcoming filings to see if other large funds are also trimming their exposure to Qualys or if they are buying up the shares Fundsmith left behind. The upcoming earnings report in November will be a key indicator of whether the company's double-digit revenue growth can support its current valuation.