Now Is A Suitable Moment For A Long-Term Purchase Of Coupa Software Incorporated (NASDAQ: COUP)


Morgan Stanley Investment Managem.. recently announced the acquisition of new stake in Coupa Software Incorporated (NASDAQ:COUP). The institutional investor has increased its shareholding in the Technology company by 3.76% to 7.94 million shares with purchase of 0.29 million shares. This fresh investment now brings its stake to 11.84% valued currently at $2.43 billion. In addition, The Vanguard Group, Inc. raised its holdings by 0.28 million to 6.05 million shares. And Jennison Associates LLC has lifted its position by 7.23% or 0.33 million shares – to 4.86 million shares.

With over 1.4 million Coupa Software Incorporated (COUP) shares trading Tuesday and a closing price of $344.42 on the day, the dollar volume was approximately $480.95 million. The shares have shown a positive weekly performance of 14.19% and its price on 09/01/20 gained nearly 5.09%. Currently, there are 65.47M common shares owned by the public and among those 62.72M shares have been available to trade.

An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 21 analysts who have offered their price forecasts for COUP have a consensus price objective of $260.39. The analysts have set the share’s price value over the next 12 months at a high of $360.00 and a low of $100.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Coupa Software Incorporated stock is 2.20 for the next 12 months. The average price target is -37.33% below its last price level and a downside to the estimated low will see the stock lose -244.42% over that period. But an upside of 4.33% will see the stock hit the forecast high price target while mean target price for the stock is $252.50.

Insiders at the company have transacted a total of 551 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 151 of these insider trades were purchases, accounting for 1,136,729 shares. Insider sales of the common stock occurred on 400 occasions, with total insider shares sold totaling 1,134,137 shares.

The top 3 mutual fund holders in Coupa Software Incorporated are Vanguard Total Stock Market Index, Fidelity Contrafund, and Vanguard Small Cap Index Fund. Vanguard Total Stock Market Index owns 1.89 million shares of the company’s stock, all valued at over $580.05 million. The company sold 8877.0 shares recently to bring their total holdings to about 2.82% of the shares outstanding. Fidelity Contrafund sold 9817.0 shares to see its total holdings shrink to 1.77 million shares valued at over $542.25 million and representing 2.64% of the shares outstanding. Vanguard Small Cap Index Fund sold 12200.0 shares to bring its total holdings to over 1.66 million shares at a value of $507.57 million. Vanguard Small Cap Index Fund now owns shares totaling to 2.47% of the shares outstanding.

Shares of Coupa Software Incorporated (NASDAQ: COUP) opened at $341.25, up $13.51 from a prior closing price of $327.74. However, the script later closed the day at $344.42, up 5.09%. The company’s stock has a 5-day price change of 14.19% and 53.61% over the past three months. COUP shares are trading 135.50% year to date (YTD), with the 12-month market performance up to 156.26% higher. It has a 12-month low price of $99.01 and touched a high of $337.49 over the same period. Currently, 1.4 million shares have been traded, compared to an average intraday trading volume of 1.47 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 13.60%, 16.02%, and 72.37% respectively.

Institutional ownership of Coupa Software Incorporated (NASDAQ: COUP) 65.47M shares outstanding. Mutual fund holders own 50.09%, while other institutional holders and individual stakeholders account for 60.46% and 28.45% respectively.

It has a market capitalization of $23.01B and a beta (3y monthly) value of 1.43. The earnings-per-share (ttm) stands at -$1.34. Price movements for the stock have been influenced by the stock’s volatility, which stands at 4.91% over the week and 4.12% over the month.

Analysts forecast that Coupa Software Incorporated (COUP) will achieve an EPS of $0.08 for the current quarter, $0.05 for the next quarter and $0.62 for 2022. The lowest estimate earnings-per-share for the quarter is $0.06 while analysts give the company a high EPS estimate of $0.12. Comparatively, EPS for the current quarter was $0.07 a year ago. Earnings per share for the fiscal year are expected to decrease by -51.10%, and 61.68% over the next financial year. EPS should grow at an annualized rate of 13.45% over the next five years, compared to -20.70% over the past 5-year period.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 21 brokerage firm advisors rate Coupa Software Incorporated (COUP) as a “Moderate Buy” at a consensus score of 2.20. Specifically, 11 Wall Street analysts polled rate the stock as a buy, while 7 of the 21 advise that investors “hold,” and 2 rated it as a “Sell.”

Looking at the support for the COUP, a number of firms have released research notes about the stock. Evercore ISI stated their In-line rating for the stock in a research note on August 12, 2020, with the firm’s price target at. KeyBanc Capital Markets coverage for the Coupa Software Incorporated (COUP) stock in a research note released on July 01, 2020 offered a Overweight rating with a price target of $320. Wedbush was of a view on May 28, 2020 that the stock is Neutral, while JP Morgan gave the stock Underweight rating on April 23, 2020, issuing a price target of $100. Morgan Stanley on their part issued Overweight rating on April 14, 2020.


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