Cyberark Software Ltd (CYBR) Bulls Bet on a Rebound

Cyberark Software Ltd (CYBR) announced a secondary public offering

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Published on Mar 12, 2015 at 11:29 AM
Updated on Apr 20, 2015 at 5:32 PM

Cyberark Software Ltd (NASDAQ:CYBR) is 5.8% lower today at $52.38, after announcing the pricing of a secondary public offering of 4 million shares at $51 apiece. In response, options traders are champing at the bit, with overall volume at triple what's normally seen at this point in the day.

On closer look, it appears speculators are buying to open the March 55 call, betting on CYBR to rebound from today's drop to reclaim $55 by the close next Friday, when front-month options expire. So far in 2015, the shares have been volatile, trading within a range of $33 to $70.48 -- an all-time high, touched in late February.

Even with the up-and-down price action, CYBR has managed to outperform the S&P 500 Index (SPX) by over 47 percentage points over the past two months. Much of this can be attributed to a post-earnings bull gap in early February.

Analysts are largely skeptical of Cyberark Software Ltd (NASDAQ:CYBR), with two covering brokerage firms issuing "buy" recommendations, four handing out "holds," and one calling the shares a "strong sell." Also, CYBR is perched above its average 12-month price target of $46.88.

Daily Chart of CYBR since January 2014

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