Cyberark Software Ltd, FireEye, Inc. Bulls Aim for Higher Highs

A bullish nod from Jim Cramer is propelling Cyberark Software Ltd (NASDAQ:CYBR) and FireEye Inc (NASDAQ:FEYE) higher

Jun 8, 2015 at 11:54 AM
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Cybersecurity firms are sustaining their upside momentum from Friday, with Cyberark Software Ltd (NASDAQ:CYBR) and FireEye Inc (NASDAQ:FEYE) both burning up the charts at midday. CYBR has surged over 7% to trade at $71, while FEYE has tacked on 1.8% at $51.93. On the options front, short-term traders are expecting additional gains.

Diving right in, CYBR is fresh off a record high of $71.35, and longer term, sports a year-to-date advance of 79%. Call volume is running at four times the usual intraday rate, and data suggests buy-to-open activity at the in-the-money June 70 strike. In other words, these buyers anticipate CYBR will extend its lead above the round-number $70 level through next week's close, when front-month options expire.

Surprisingly, 71% of the analysts tracking CYBR consider it a "hold" or worse. Also, the stock's consensus 12-month price target of $58.67 sits below its current perch. This could pave the way for future upgrades and/or price-target hikes.

Meanwhile, FEYE earlier tagged an annual high of $52.48, and sports a more than 64% year-to-date lead. As such, intraday call volume more than doubles the normal pace -- and nearly triples the number of puts on the tape. Digging deeper, buy-to-open activity could be transpiring at the June 55 call, as speculators wager on FEYE to take out $55 -- and reach levels not explored since April 2014 -- by front-month expiration.

FEYE, too, could benefit from positive analyst attention. More than half of the firms covering the shares consider them a "hold" or worse, and the stock's average 12-month price target of $49.24 is 5.5% below current trading levels.

Contributing to today's bullish price movement for both Cyberark Software Ltd (NASDAQ:CYBR) and FireEye Inc (NASDAQ:FEYE) was a nod from Jim Cramer. The well-known CNBC pundit included the stocks on his list of three "cheap" cybersecurity plays.
 

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