Coupa Software Incorporated (NASDAQ:COUP) shares fell to a low of $306.6101 before closing at $313.72. Intraday shares traded counted 0.96 million, which was 25.96% higher than its 30-day average trading volume of 1.30M. COUP’s previous close was $306.95 while the outstanding shares total 67.60M. The firm has a beta of 1.50. The stock’s Relative Strength Index (RSI) is 69.31, with weekly volatility at 3.91% and ATR at 13.08. The COUP stock’s 52-week price range has touched low of $99.01 and a $353.55 high. The stock traded higher over the last trading session, gaining 2.21% on 10/13/20.
Investors have identified the Software – Application company Coupa Software Incorporated as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $20.68 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Coupa Software Incorporated (COUP) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For COUP, the company has in raw cash 905.61 million on their books with 595.01 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on an incline. In terms of their assets, the company currently has 1482407000 million total, with 922829000 million as their total liabilities.
COUP were able to record 31.77 million as free cash flow during the third quarter of the year, this saw their quarterly net cash flow reduce by 637.49 million. In cash movements, the company had a total of 38.8 million as operating cash flow.
Potential earnings growth for Coupa Software Incorporated (COUP)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the third quarter of the year, Coupa Software Incorporated recorded a total of 125.92 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 24.45% coming in sequential stages and their sales for the third quarter increasing by 5.33%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 48.44 million trying to sell their products during the last quarter, with the result yielding a gross income of 77.48 million. This allows shareholders to hold on to 67.60M with the revenue now reading -0.64 cents per share. This is a figure that is close to analyst’s prediction for their fourth quarter (-0.24 cents a share).
Having a look at the company’s valuation, the company is expected to record -0.67 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on COUP sounds very interesting.
Is the stock of COUP attractive?
In related news, Chief Financial Officer, Ford Todd R sold 12,500 shares of the company’s stock in a transaction that recorded on Sep 30. The sale was performed at an average price of 274.28, for a total value of 3,428,478. As the sale deal closes, the Chief Accounting Officer, Tiscornia Anthony D now sold 1,361 shares of the company’s stock, valued at 359,399. Also, Chief Customer Officer, Riggs Mark sold 1,016 shares of the company’s stock in a deal that was recorded on Sep 24. The shares were price at an average price of 263.03 per share, with a total market value of 267,238. Following this completion of acquisition, the Chief Financial Officer, Ford Todd R now holds 3,878 shares of the company’s stock, valued at 989,559. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.50%.
12 out of 23 analysts covering the stock have rated it a Buy, while 8 have maintained a Hold recommendation on Coupa Software Incorporated. 1 analysts has assigned a Sell rating on the COUP stock. The 12-month mean consensus price target for the company’s shares has been set at $273.58.