Analysts Rush to Raise CyberArk Price Targets After Earnings

It was a beat-and-raise for the cybersecurity specialist this quarter

Nov 8, 2018 at 9:47 AM
facebook twitter linkedin


The shares of CyberArk Software Ltd (NASDAQ:CYBR) are up 10.2% this morning to trade at $78.31 -- fresh off a new record high of $84.21 -- after the cybersecurity firm reported adjusted third-quarter earnings of 48 cents per share on $84.7 million in revenue, more than analysts were expecting. CyberArk Software also raised its full-year profit and revenue forecasts.

No fewer than 10 analysts have raised their CYBR stock price targets, with Evercore ISI setting the highest bar at $96 -- a 33% premium to last night's close. By comparison, the average 12-month price target for CyberArk is $89.29, while 11 of 17 analysts maintain a "buy" or better rating, with not a single "sell" on the books.

This optimism is seen elsewhere. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), CYBR's top-heavy 10-day call/put volume ratio of 28.00 ranks in the 98th annual percentile, meaning calls have been bought to open over puts at a quicker-than-usual clip.

Ahead of earnings, premium on short-term options was pricing in extremely elevated volatility expectations, per CYBR's 30-day at-the-money implied (ATM) volatility (IV), which closed last night at 56.2% -- in the 94th annual percentile. Meanwhile, the stock's 30-day IV skew settled Wednesday at 76%, registering in the 98th percentile of its 12-month range. In other words, short-term calls had rarely been cheaper than puts heading into today's trading.

Coming off its worst monthly performance since July 2017 -- with CYBR shedding 14.5% in October -- the stock is now headed toward its biggest one-day gain since January 2016. More broadly, CyberArk Software stock was already up 73% year-to-date heading into today, with recent support emerging at its rising 120-day moving average.

 

Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 

 

300x250 - Banner 3 - v1