Cybersecurity concern FireEye (FEYE) has been middling on the charts, after cooling off from a Dec. 23 bull gap that pushed shares to a six-year high of $25.53. The equity still boasts a 55.6% year-over-year lead, though, while the $19 mark seems to be serving as a floor for the shares. Plus, there is reason to believe the stock may soon break free from this sideways trading action to inch closer to its latest peak.
The security just pulled back to its 200-day moving average, after several months spent above this trendline. According to data from Schaeffer’s Senior Quantitative Analyst Rocky White, similar moves have occurred three other times over the past three years, with the equity enjoying a positive one-month return 67% of the time, averaging a 23.5% pop. A comparable move would put FEYE above the $25 for the first time since its December surge.
Analysts are mostly pessimistic towards FireEye stock, indicating the equity could be overdue for a round of upgrades. Of the 11 in question, six still call the security a tepid “hold” or worse. That bearish sentiment is echoed among short sellers. The 16.05 million shares sold short currently make up 6.9% of the stock’s available float.
The security could benefit from a shift in the options pits, too. This is per FEYE’s 10-day put/call volume ratio at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which stands in the 84th percentile of its annual range. Echoing this is the stock’s Schaeffer’s put/call open interest ratio (SOIR), which sits higher than all readings from the past 12 months. In simpler terms, short-term options traders have rarely been more put-biased.