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