Shares of Quest Software Inc. (NASDAQ: QSFT) surged more than 10% in today�s trading, reaching a high of $19.65 in trading, and closing 8.98% higher at $19.29, with volume up from 1.25 million to 6.97 million. California-based Quest is a designer, developer, marketer, distributor of enterprise management software products.
Although there is no major news or recent development behind today�s spike, investors have been bullish on the stock in the last five trading sessions. And if the activity in the option market is anything to go by, the stock could continue to be in the spotlight. Investors bought 2,600 call option contracts on Quest in today�s trading. These contracts expire next month and have a strike price of $20. In early trading, the premium on these call options was $0.15, but, by the end of the day, Quest $20 June call options were commanding a premium of $0.75, representing a five-fold increase in a single trading session. This is a definite signal that investors are bullish on the stock. Also, in the last five trading sessions, Quest has appreciated 17%.
Quest�s first-quarter results, which it reported earlier this month, were solid. The company reported 3.4% increase in first-quarter revenue to $171.2 million. Net income stood at $15.6 million, up from $9.9 million reported for the same period last year. The company ended the quarter in a strong financial position, with $425.9 million in cash and investments.
Quest reached a 52-week high in today�s trading. The stock has a 52-week range of $12.47-$19.65. The stock has a beta of 0.87. Currently, the stock is trading above its 50-day and 200-day moving averages. This is again a bullish signal. The rally in the last five trading sessions and the activity in the options market indicate that the stock may see some further appreciation.
About BeaconEquity.com
BeaconEquity.com is committed to producing the highest-quality insight and analysis of small cap stocks, emerging technology stocks,hot penny stocks and helping investors make informed decisions. Our focus is primarily on the underserved OTC stocks market, or �penny stock� market, which has traditionally been shunned by Wall Street. We have particular expertise with renewable energy stocks, biotech stocks, oil stocks, green energy stocks and internet stocks. There are many hot penny stock opportunities present in the OTC market everyday and we seek to exploit these hot stock gains for our members before the average daytrader is aware of them.
No comments:
Post a Comment