Coupa Software Incorporated [NASDAQ:COUP] shares are showing an active tape with a current price of $331.83 on Wednesday.
Coupa Software Incorporated is in the Technology sector under the Software – Application industry. This week, we are watching the stock hit price per sales of 52.89 with an earning per share of -1.34.
For the year, the stock is trading 126.89% and the five-day change stands at 11.16%. As a point of reference, the S&P 500 is trading 1.01% YTD.
The Price is right
Holding a Market Cap of $22.61 billion, Coupa Software Incorporated has seen a trading range over the last year of $99.01-$319.55.
For the last five days, COUP is up from its last closing price. The average shares trading hands each day is 1.58M, with average 10-day volume coming in at 0.7 million.
Using a Force Index Indicator is a good way to look at how strong actual buying and selling pressure is for COUP. When we apply the Elder Force Index to Coupa Software Incorporated, we are seeing an Elder Force Indicator number of 51615605.2.
The recent performance of the stock is another area that can tell traders how to proceed. COUP is presenting an interesting case. This can be seen in the Forward P/E ratio, which currently stands at 529.23. Moreover, the company’s enterprise value has gone from $11.78B to $10.33B quarter-over-quarter. Obviously, the company is heading in the wrong direction, but there are still opportunities for growth in the sector.
In the last quarter, COUP made a profit of 76.38 million. Coupa Software Incorporated also saw quarter revenue growth year over year of 49.68%. In addition, the company has operating cash flow of $64.77 million.
Looking at popular technical indicators, the company’s 5-day moving average is 307.54 compared to the 50-day moving average of 299.58. So, we are clearly seeing an upward trajectory here.
The Relative Strength Index or RSI is an indicator ranging between 0 and 100 that traders use to determine if a stock is “overbought” or “oversold.” A strong uptrend tending to reach into the “overbought” status is above 70, while a downward trend will stay around the 30 mark. COUP currently holds a 9-day RSI of 73.72%, while 100-day RSI stands at 61.13%.
Another indicator we believe is worth keeping tabs on is the Moving Average Convergence Divergence or MACD. Similar to the concept of the Force Index — on the basis of price momentum — the MACD gives traders a tool to measure the turning point of a stock even during rapid fluctuations in price. Buy and sell signals are determined by a stock’s relation to the zero line, so if a stock is above a zero line for many weeks it might be a “buy.” On the other hand, if a stock is below the zero line consistently, it might be one to stay away from. Also, if the MACD line reaches a peak and dips, its momentum may be waning. COUP’s 9-day MACD is 8.43 and the company’s 100-day MACD stands at 67.48.
Another area that is important to analyze is insider moves and majority shareholders. While this is not always an error-free way to tell what the future holds for a stock, you can maybe gather important information from reading the tea leaves about who is buying and selling.
The major holders for this stock are 0.49% by insiders and 103.32% by institutions. Regarding institutional holdings, Morgan Stanley owns 12.65%, while the second top holder, Vanguard Group, Inc. (The), currently owns 9.22%.
Over the last six months, insiders have sold 931 with the most recent transaction from Riggs Mark, Chief Customer Officer, with a sell at price 305.85 per share.
Overall, the recommended rating for COUP is Moderate Buy. Currently, the company has 20 analysts watching the stock, and the average quarterly earnings estimate is 0.08. Quarterly revenue estimates are averaging 118.84M with the high estimate reaching 120.7M and the low at 118M.
To review, the current 1-year target estimate is sitting at 245.15, while the current price 331.83. Based on this, we expect some pullback on the stock over time given our above analysis.