Analysts, Options Traders Flock to Sinking Software Stock

BILL received a flood of bear notes, including two downgrades

BILL Holdings Inc (NYSE:BILL) is plummeting to three-year lows today, brushing off upbeat fiscal first-quarter results after the company’s disappointing second-quarter and full fiscal year outlook. CEO Rene Lacerte said in a post-earnings call that the company “started to see more intense macro pressure on our business related to spend late in the quarter, and that has continued through October.”

In response, Keybanc downgraded BILL to “sector weight,” while William Blair cut its rating to “market perform.” A flood of other analysts chimed in with price-target cuts. Of the 26 analysts in coverage, 15 still carry a “buy” or better rating on the stock, with 11 a “hold” or worse. Plus, the 12-month consensus price target of $94.29 sits at a roughly 48% premium to current levels. 

Options traders are blasting Bill stock today. So far, 26,000 calls and 23,000 puts have been traded, which is 25 times the average daily options volume. The November 65 and 75 puts are most popular, with new positions being opened at both. It’s also worth noting the security has landed on the short sell restricted (SSR) list today amid the volatility. 

At last glance, BILL was down 28.7% at $63.80, trading at its lowest levels since April 2020. Looking to mark a fourth consecutive weekly loss at the close today, shares are down 41% since the start of the year.

 

 

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