The software maker turned in a surprising second-quarter profit
Coupa Software Inc (NASDAQ:COUP) stock is red-hot today, after the software firm reported a second-quarter adjusted profit of 7 cents per share, compared to expectations for a per-share loss of 10 cents. COUP also said revenue jumped 54% to a stronger-than-forecast $95.1 million on Business Spend Management (BSM) subscription growth, and raised its full-year guidance.
Analysts have been quick to chime in, with no fewer than seven raising their COUP price targets. SunTrust Robinson and Oppenheimer set the highest targets at $170 -- a 26.5% premium to last night's close. More bull notes could come down the pike should the stock continue to soar, considering five of 14 brokerages still maintain a lukewarm "hold" rating on COUP, and the average 12-month price target of $162.40 is a slim 6.3% premium to current levels.
Data suggests options traders were bracing for a post-earnings drop. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), COUP's 10-day put/call volume ratio of 0.97 registers in the 89th annual percentile, meaning puts have been bought to open relative to calls at a quicker-than-usual clip.
Given Coupa Software stock's impressive run up the charts, it's possible some of this put buying was due to shareholders protecting paper profits against any downside risk. Looking closer at the charts, the shares are up 14.1% today at $153.41 -- fresh off a record high of $155.45 -- and have now gained 144.4% year-to-date atop steady support from their 50-day moving average.