Why Coupa Software Stock Lagged the Market Today
On a generally bullish Tuesday for the stock market, many titles -- even in the out-of-fashion tech sector -- rose handsomely in price. Unfortunately for Coupa Software (NASDAQ: COUP) investors, their stock wasn't one of them. The company essentially traded flat on the day as the S&P 500 index rose at a nearly 1% clip. But that's what often happens when a company is dinged by numerous analyst downgrades.
The various downgrades were understandable following the Monday run-up in Coupa stock. The company has agreed to be acquired by private equity firm Thoma Bravo in an all-cash deal price-tagged at $81 per share (working out to $8 billion in enterprise value). This will take the company private, removing it from the public market.
As usually happens in such situations, the share price leaped to nearly that amount and has remained there since. Hence the downgrades.
Source Fool.com
