On Tuesday, Cloudera (NYSE:CLDR) stock rose 18.7% and closed at $12.00. The shares rose after reports that the company might be exploring the possible sale of its business. According to a Bloomberg report, the enterprise software company is working with financial advisers. Cloudera held talks with potential buyers for a sale.
D.A. Davidson analyst Rishi Jaluria thinks that IBM is the most likely buyer. According to a report from TheFly, Jaluria “views IBM (NYSE:IBM) as the most likely strategic buyer, citing the companies’ existing partnership, IBM’s focus on hybrid/multi-cloud, and Cloudera’s fit with the recent Red Hat acquisition, but also sees an outside shot it could be acquired by one of the hyperscale cloud vendors such as Amazon Web Services (NASDAQ:AMZN), Google Cloud (NASDAQ:GOOGL) or Microsoft (NASDAQ:MSFT).” The report also said, “Jaluria views private equity as another likely possibility … A takeover in line with recent PE software M&A multiples would imply a share price of $17.” Jaluria increased its target price on Cloudera stock from $13 to $15 and maintained a “buy” rating.
Cloudera’s Q1 earnings results
Last week, Cloudera announced its earnings results for the first quarter of fiscal 2021, which ended in April. The company reported revenue of $210.5 million with an adjusted EPS of $0.05. In the first quarter of fiscal 2020, Cloudera reported revenue of $187.5 million with an adjusted EPS of -$0.13. Analysts expected the company to report sales of $204.6 million and an adjusted EPS of $0.00 in the first quarter.
Wall Street analysts expect Cloudera to report a non-GAAP EPS of $0.06 on revenue of $207.8 million in the second quarter. Analysts expect Cloudera’s sales to grow 5.5% YoY (year-over-year) in fiscal 2021 to $838.0 million. The sales could rise by 9.4% YoY in fiscal 2022 to $916.9 million. The non-GAAP EPS will likely rise from -$0.13 in fiscal 2020 to $0.26 in fiscal 2021. They expect a non-GAAP EPS of $0.41 in fiscal 2022.
Analysts’ recommendations and target price
Among the 17 analysts following Cloudera stock, five recommend a “buy,” 11 recommend a “hold,” and only one recommends a “sell.” Wall Street analysts have a consensus target price of $12.07 on the stock, which implies a potential upside of about 0.6%. The consensus target price for the stock has risen from $11.40 in the last month—a growth of 5.9%.
Cloudera’s stock price has risen 6.8% in the trailing five-day period, while it has risen 135.3% in the trailing 12-month period. Currently, the stock is trading 4.0% below its 52-week high of $12.50 on June 3, 2020. Cloudera stock is also trading 152.1% above its 52-week low of $4.76 on March 18, 2020. On a year-to-date basis, the stock has risen by 3.2% as of Tuesday.
Based on the closing price on Tuesday, Cloudera stock was trading 20.2% above its 20-day moving average of $9.98. The stock is also trading 37.3% above its 50-day moving average of $8.74 and 32.5% above its 100-day moving average of $9.06. Cloudera’s 14-day relative strength index number is 66, which suggests that it isn’t overbought or oversold.
Cloudera stock has a middle Bollinger Band level of $9.78, while its lower Bollinger Band level is $7.33. On Tuesday, Cloudera stock closed near its upper Bollinger Band level of $12.22, which suggests that it’s overbought.
Today at 9:03 AM ET, Cloudera stock rose 2.1% to $12.37 in the pre-market session. At the same time, the Dow futures rose 0.18%, while the S&P 500 futures rose 0.37%.
Read Cloudera’s Massive Stock Rally Might Fade Fast to learn more.