AAL

SPLK Takes Nosedive After Dismal Quarterly Report

No fewer then 12 analysts trimmed their price targets

Digital Content Manager
Dec 3, 2020 at 10:16 AM
facebook X logo linkedin


The shares of software firm Splunk Inc (NASDAQ:SPLK) are taking a nosedive today. The stock was last seen down 22.4% at $159.89, after the company shared third-quarter revenue and a fourth-quarter forecast that missed estimates. In response, no fewer than 12 analysts trimmed their price targets, including D.A. Davidson, which cut to $117, and downgraded the equity to "neutral" from "buy."

As a result, SPLK is on course for its worst daily percentage loss ever, and is trading back near its late-May levels. The equity has been quite volatile on the charts since its all-time high of $225.89, touched back in early September. The security cooled considerably following this peak, though support from the 160-day moving average helped launch SPLK briefly back up the charts. This trendline has continued to serve as support for the security, though it's been breached today for the first time in roughly seven months. 

A look at analyst sentiment, coming into today, shows a healthy amount of optimism. Of the 26 analysts in coverage, 21 considered SPLK to be a "buy" or better. Plus, the 12-month consensus price target of $209.22 is a 33.9% premium to current levels. 

Options activity is also seeing a surge today on both sides, with 14,000 calls and 11,000 puts across the tape so far -- a whopping 44 times the intraday average, with volume running in the top percentile of its annual range. The weekly 12/4 150-strike put is the most popular, with positions being bought to open here, suggesting these traders are expecting the $150 level to hold as a ceiling by the time these contracts expire this Friday. 

 

 

Two High-Octane Trade Ideas. One Simple Goal: Intraday Profits.

Dynamite Day Trading Signals delivers two same-day options trades every week — powered by proprietary intraday analysis and 43+ years of trading expertise.

But this isn’t just another stream of alerts.

It’s a structured plan with clear entry and exit points – designed for traders who want to act fast, trade smart, and wrap up gains before the closing bell.

No guesswork. No overnight exposure – Just two well-researched setups per week — whether you prefer buying premium or selling it.

And the results speak for themselves: subscribers have locked in +245.8% total profit over the last six months (since inception!).

👉 Start your one-month trial now for just $10, and be ready for the next trade alert.