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Software Stock Surges After Upbeat Report

Analysts and options traders are targeting the stock today

Deputy Editor
Aug 19, 2022 at 11:16 AM
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Bill.com Holdings Inc (NYSE:BILL) stock is surging today, up 13.8% to trade at $170.08 at last glance, after the software concern's narrower-than-anticipated fiscal fourth quarter losses of 3 cents per share, better-than-expected revenue, and upbeat guidance. No fewer than nine analysts lifted their price targets after the event, with the highest from KBW to $269 from $245. 

Today's pop has BILL on track to snap a three-day losing streak, now trading at its highest levels since early May. The stock has moved higher -- albeit choppily -- since its May 12, nearly two-year low of $89.87, though it still sits 29.6% lower year-to-date. 

Options bulls are targeting enthusiastic after the results, with 11,000 calls exchanged so far -- 15 times the intraday average volume and over double the amount of puts. Expiring today, the August 180 call is the most popular, with new positions being bought to open there. These traders are in luck, as the security's Schaeffer's Volatility Scorecard (SVS) sits at a 93 out of 100, meaning it has exceeded option traders' volatility expectations in the past year.

Analysts are overwhelmingly bullish toward Bill.com stock as well. Of the 15 in coverage, 14 carry a "strong buy" rating. Meanwhile, short interest represents 6.3% of the stock's available float, or three days worth of pent-up buying power. 

 

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