Traders Purchase Large Volume of SecureWorks Call Options (NASDAQ:SCWX)

SecureWorks Corp. (NASDAQ:SCWX) saw some unusual options trading on Wednesday. Investors bought 4,227 call options on the company. This represents an increase of 3,365% compared to the typical volume of 122 call options.

NASDAQ SCWX traded down $0.14 on Wednesday, reaching $18.34. The company had a trading volume of 126,917 shares, compared to its average volume of 131,518. The firm has a market cap of $1.57 billion, a price-to-earnings ratio of -48.26 and a beta of 1.02. SecureWorks has a fifty-two week low of $11.09 and a fifty-two week high of $26.89. The business has a 50 day moving average of $20.34 and a two-hundred day moving average of $19.35.

SecureWorks (NASDAQ:SCWX) last posted its quarterly earnings data on Wednesday, September 1st. The technology company reported $0.01 earnings per share for the quarter, beating the Zacks’ consensus estimate of ($0.01) by $0.02. SecureWorks had a negative return on equity of 1.29% and a negative net margin of 5.64%. The business had revenue of $134.20 million during the quarter, compared to the consensus estimate of $135.02 million. During the same period in the prior year, the business posted $0.10 earnings per share. SecureWorks’s quarterly revenue was down 3.1% on a year-over-year basis. On average, equities research analysts forecast that SecureWorks will post -0.4 EPS for the current year.

Institutional investors have recently modified their holdings of the business. Barclays PLC grew its holdings in SecureWorks by 223.0% during the 3rd quarter. Barclays PLC now owns 4,079 shares of the technology company’s stock worth $81,000 after acquiring an additional 2,816 shares during the period. SG Americas Securities LLC acquired a new stake in SecureWorks during the 3rd quarter worth about $135,000. Meeder Asset Management Inc. acquired a new stake in SecureWorks during the 2nd quarter worth about $145,000. New York State Common Retirement Fund grew its holdings in SecureWorks by 116.8% during the 2nd quarter. New York State Common Retirement Fund now owns 8,673 shares of the technology company’s stock worth $161,000 after acquiring an additional 4,673 shares during the period. Finally, Jaffetilchin Investment Partners LLC acquired a new stake in SecureWorks during the 3rd quarter worth about $219,000. Hedge funds and other institutional investors own 14.62% of the company’s stock.

SCWX has been the subject of a number of research reports. Zacks Investment Research upgraded SecureWorks from a “sell” rating to a “hold” rating in a research note on Wednesday. Needham & Company LLC reiterated a “hold” rating on shares of SecureWorks in a research note on Tuesday, October 12th. Royal Bank of Canada increased their price target on SecureWorks from $15.00 to $20.00 and gave the company a “sector perform” rating in a research note on Friday, September 3rd. Finally, Barclays increased their price target on SecureWorks from $16.00 to $19.00 and gave the company an “underweight” rating in a research note on Friday, September 3rd. Three analysts have rated the stock with a sell rating and four have given a hold rating to the stock. According to data from MarketBeat.com, the stock has an average rating of “Hold” and an average price target of $17.67.

About SecureWorks

SecureWorks Corp. is a cyber security company, which engages in the provision of information security solutions. The firm’s products include extended detection and response, managed detection and response, and vulnerability management. Its services include managed security, incident response, threat intelligence, security consulting, adversarial security testing.

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