Earnings, Bull Notes Guide CyberArk Software to Fresh High

And there is room for even more upgrades

Managing Editor
Aug 8, 2018 at 10:08 AM
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CyberArk Software Ltd (NASDAQ:CYBR) stock is up 15% to trade at $71.07, earlier touching a three-year high of $71.25, after the online security platform reported better-than-expected second-quarter earnings and revenue yesterday. An onslaught of bull notes ensued, including an upgrade to "overweight" from "neutral" at J. P. Morgan Securities. The brokerage firm also issued the highest price target of the bunch, raising it to $85 from $60. 

Many analysts still remain skeptical, though. Exactly half of the 16 brokerages covering CYBR rate it a tepid "hold." Further, the stock's average 12-month price target of $71.24 is almost identical to its current perch. More bull notes could push the stock even higher in the short-term, as today's big move could prompt additional analyst revisions in the near term.

CyberArk Software stock is on track for its best day in more than three years. The equity has been in a steady uptrend this year, and even the shares' pullback in late July was cushioned by their 80-day moving average. Overall, CYBR boasts a year-to-date lead north of 70%. 

As for options traders, volume on an absolute basis has been low, but those targeting near-term contracts have shown a clear preference for calls. This is according to the stock's Schaeffer's put/call open interest ratio (SOIR) of 0.34, which ranks in the 4th percentile of its annual range. This means short-term speculators have rarely been more call-heavy in the past year, looking at options expiring in the next three months.

Digging deeper, the August 64.50 call saw the largest increase in open interest during the past 10 sessions. This call-heavy action is continuing today, too, with more than 1,144 calls crossing so far -- already doubling the daily average -- versus 139 puts.

 

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