The company's current-quarter forecast missed expectations
The shares of F5 Inc (NASDAQ:FFIV) are down 13% at $192.31 this morning, despite an upbeat fiscal first-quarter earnings report. The cloud security company posted earnings of $2.89 per share on $687.10 million in revenue -- beating analysts' estimates. However, F5's current-quarter forecast missed expectations, as supply chain constraints weigh.
No less than seven analysts cut their price targets in response, including RBC, which lowered its price objective by $10 to $210. The analyst did note, though, that these supply chain constraints would be transitory.
More bear notes could be on the way. Of the 12 analysts in coverage, nine consider FFIV a "buy" or better, without a single "sell" to be seen. Plus, the 12-month consensus price target of $246.40 is a 27.4% premium to current levels.
The stock hit a nearly six-month low right out of the gate this morning, and is now feeling pressure at the formerly supportive 200-day moving average. FFIV is down nearly 22% year-to-date, and is on its way to logging its biggest one-day drop on record, should these losses hold.
The security's normally quiet options pits are brimming with activity. So far, 1,482 calls and 2,433 puts have exchanged hands, which is 24 times the intraday average. The most popular position is the weekly 2/4 125-strike put, where positions are being sold to open.