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How Barracuda Quoted Below Its Benchmark—but Remained Attractive

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Shareholder returns and stock trends

On September 29, 2015, Barracuda Networks (CUDA) showed a decline of -7.25% in the trailing twelve-month period and decline of -11.33% in the trailing one-month period. The share price of the firm saw a decline of -15.80% in the trailing five-day period.

By comparison, Barracuda’s peer companies Cisco Systems (CSCO), Juniper Networks (JNPR), and Palo Alto Networks (PANW) showed increases of 1.99%, 0.83%, and 6.82%, respectively, in the trailing five-day period.

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Moving Averages

On September 29, 2015, the last trading price of Barracuda was at $23.55. The firm was trading at 12.87%, 12.19%, and 28.14% below its 20-day, 50-day, and 100-day moving averages of $27.03, $26.82, and $32.77, respectively.

MACD and RSI

A company’s MACD (moving average convergence divergence) is the difference between its short-term and long-term moving averages. The 14-day MACD for VASCO Data Security International (VDSI) was 0.03, which shows an upward trading trend as the figure is positive.

The 14-day RSI (relative strength index) for VASCO was 35, which shows that the stock is neither oversold nor overbought. If a company’s RSI is above 70, it indicates that its stock is overbought, while an RSI figure of below 30 suggests that its stock has been oversold.

Barracuda (CUDA) constitutes 0.08% of the iShares North American Tech-Software ETF (IGV) and 0.01% of the Vanguard Information Technology (VGT).

Analyst recommendations

Out of 18 analysts covering Barracuda’s stock, 17 have issued a “buy” recommendation, zero have issued a “sell” recommendation, and one has issued a “hold” recommendation. The analyst stock price target for the firm is $41.21, with a median target estimate of $40.50. Barracuda is thus trading at a discount of 41.85% with respect to its median target—presumably an attractive buy at current levels.

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