Long Position on COUP @ $103.00 on 5/7/2019 (Momentum)

Coupa Software Incorporated (COUP) provides cloud-based spend management platform.

The company's platform connects organization with suppliers globally; and provides visibility into and control over how companies spend money, as well as enables businesses to achieve savings that drive profitability.

Its platform consists of procurement, invoicing, and expense management modules that form its transactional engine and capture a company's spend; and offers supporting modules, including sourcing, spend analysis, contract management, supplier management, and inventory management.

The company markets its platform to a range of enterprises in various industries, such as healthcare and pharmaceuticals, retail, financial services, manufacturing, technology, and others primarily through a direct sales force worldwide. 

Shares have formed a bullish "cup and handle" and are expected to move higher out of this formation.  On March 11th, the firm reported 4th Quarter January 2019 earnings of $0.08 per share on revenue of $74.9 million. The consensus estimate was for breakeven results on revenue of $68.1 million. The company said it expects a first quarter non-GAAP loss of $0.06 to $0.03 per share on revenue of $73.5 million to $74.0 million and fiscal 2020 earnings of $0.04 to $0.10 per share on revenue of $325.0 million to $327.0 million. The current consensus estimate is earnings of $0.02 per share on revenue of $69.7 million for the quarter ending April 30, 2019 and earnings of $0.21 per share on revenue of $309.9 million for the year ending January 31, 2020. Higher share prices are expected for this stock.

Entry Point: $103.00

Stop Loss: $97.50

52-Weeks Trading Range: $49.615 to $105.13

Target Price: $113.30

Updates

5/21/2019 10:31:17 AM

COUP closed at $113.60

Position closed on 5/21/2019 at price of $113.60 with a 10.29% gain in 14 days.

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