Mergers and acquisitions announcements


The all-cash $8 billion buyout deal will take the tech name private

Coupa Software Inc (NASDAQ:COUP) is surging this morning, after the tech company posted fourth-quarter earnings and revenue that surpassed Wall Street’s expectations. The bigger news, though, is news that the company entered a definitive agreement to be acquired by Thoma Bravo for $8 billion. The all-cash transaction will also turn Coupa Software into a  privately held business. 

COUP is now trading at its highest level since August, last seen up 26.8% at $78.72. The shares had been consolidating above $60 for the last month, while the 100-day moving average is also support. Year-to-date, though, COUP is down 50.2%. 

Coupa Software stock looks ripe for a short squeeze, too. Short interest is up 7.8% in the two most recent reporting periods, and the 7.28 million shares sold short account for 9.7% of the equity’s available float. 

In the options pits, calls have been all the rage. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the equity’s 50-day call/put volume ratio of 3.77 sits higher than all other readings from the past year. Echoing this, COUP’s Schaeffer’s put/call open interest ratio (SOIR) stands higher than only 4% of annual readings, meaning short-term traders have rarely been more call-biased.  

At last check today, 7,345 calls and 1,842 puts have been traded, or five times what is normally seen at this point. The December 79 call is the most popular, where new positions are currently being opened.


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By admin