Coupa Software Stock Brushes Off Post-Earnings Bear Notes

The stock reversed its pre-market losses

Deputy Editor
Dec 7, 2021 at 10:42 AM
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The shares of Coupa Software Inc (NASDAQ:COUP) are up 4.8% to trade at $182.50 at last check, reversing this morning's steep pre-market losses, after the company's third-quarter report. The tech name posted third-quarter profits of 31 cents per share, which is higher than analysts' expected two cents, as well as better-than-anticipated revenue. However, no fewer than 10 analysts slashed their price targets, including Evercore ISI to $175 from $300. The firm cited lighter-than-expected fourth-quarter revenue and billings guidance, and the stock's lack of a near-term catalyst. 

Today's pop has COUP continuing to climb from its recent Dec. 6 annual low of $162.41, after four consecutive weekly losses. Longer term, its 200-day moving average has loomed as overhead pressure since March, and has rejected several rally attempts. Year-to-date, Coupa stock is down 47.3%. 

Shorts have been jumping ship, with short interest down 16.8% during the most recent reporting period. However, short interest still represents 8.7% of the stock's available float, or over five days' worth of pent-up buying power. 

Meanwhile, of the the 17 analysts in coverage, 10 carry a "buy" or better rating on COUP, with seven a "hold" or worse. Plus, despite the slew of bear notes today, the 12-month consensus price target of $229.35 is still a 25% premium to current levels. 

 

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