2 Cloud-Based Software Stocks in Focus Today

TEAM is heading for a ninth-straight win, while PSTG is cooling off from record highs

Managing Editor
Jul 2, 2024 at 10:17 AM
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Two cloud-based software stocks are making moves today, for two very different reasons. Atlassian Corp (NASDAQ:TEAM) was upgraded to "overweight" from "neutral" at Piper Sandler, while Pure Storage Inc (NYSE:PSTG) was downgraded by UBS to "sell" from "neutral." 

Atlassian Up Off the Mat

The analyst in coverage at Piper Sandler also hiked their price target to $225 from $200, and is bullish on the risk/reward setup, calling Atlassian "one of the most durable companies in our coverage." TEAM was last seen up 2.5% to trade at $182.75, on track for a ninth-straight win. The shares bottomed out at an annual low of $152.34 on June 20, and are now testing their 80-day moving average. 

PSTG Cools Off

The analyst in coverage at UBS also trimmed its Pure Storage price target to $44 from $47. PSTG was last seen down 5.5% to trade at $61.98. The shares have taken a 12% haircut since scoring a record high of $70.41 on June 18. Year-to-date though, the stock remains up 73%. 

Options Trends Unite TEAM, PSTG

Regardless of the differing technical direction, TEAM and PSTG both stocks have only a slim 2% of their total available float sold short. There are similarities in the options pits too, as Both equities also sport attractively priced premiums at the moment, per their respective Schaeffer's Volatility Indexes (SVI) that both sit in the bottom 15th percentile of their annual range. Furthermore, both securities' Schaeffer's Volatility Scorecard (SVS) sit at 20 or lower, making both TEAM and PSTG premium-selling candidates

 
 

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