monday.com (NASDAQ:MNDY) Stock Sees Unusually High Put Option Buying

Key Points

• Put-option trading surged: Investors bought 14,663 monday.com put options, about 550% above the typical volume, potentially reflecting increased hedging or bearish positioning.
• Shares fell 7.3% to $81.48 in Monday trading, despite quarterly results beating estimates: EPS was $2.14 versus $1.41 expected, and revenue reached $377.54 million, up 19.1% year over year.
• The company’s revenue outlook reportedly fell short of expectations, weighing on growth sentiment. Analysts’ consensus rating was Hold, with an average price target of $107.35.

monday.com Ltd. (NASDAQ:MNDY - Get Free Report) was the target of some unusual options trading activity on Monday. Investors bought 14,663 put options on the stock. This represents an increase of 550% compared to the typical volume of 2,257 put options.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently commented on MNDY shares. TD Cowen cut monday.com from a "buy" rating to a "hold" rating and lowered their price target for the stock from $110.00 to $105.00 in a report on Tuesday, November 3rd. Wall Street Zen raised monday.com from a "hold" rating to a "buy" rating in a research note on Sunday, November 1st. Capital One Financial cut monday.com from an "overweight" rating to an "equal weight" rating and set a $95.00 target price on the stock. in a research report on Monday, August 10th. Needham & Company LLC reiterated a "buy" rating and issued a $125.00 target price on shares of monday.com in a research report on Tuesday, October 27th. Finally, Zacks Research downgraded monday.com from a "strong-buy" rating to a "hold" rating in a research note on Thursday, October 15th. Twelve equities research analysts have rated the stock with a Buy rating and thirteen have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average price target of $107.35.

monday.com Stock Down 7.3%

Shares of NASDAQ MNDY traded down $6.45 during midday trading on Monday, reaching $81.48. 1,723,550 shares of the company were exchanged, compared to its average volume of 1,753,541. The stock's 50-day moving average price is $90.72 and its 200-day moving average price is $83.05. The stock has a market cap of $4.17 billion, a P/E ratio of 34.68, a PEG ratio of 1.98 and a beta of 1.06. monday.com has a one year low of $57.50 and a one year high of $169.76.

monday.com (NASDAQ:MNDY - Get Free Report) last announced its quarterly earnings results on Monday, November 9th. The company reported $2.14 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.41 by $0.73. monday.com had a net margin of 8.87% and a return on equity of 9.09%. The company had revenue of $377.54 million during the quarter, compared to the consensus estimate of $369.17 million. During the same period in the prior year, the business earned $1.16 earnings per share. The company's revenue for the quarter was up 19.1% compared to the same quarter last year. On average, equities research analysts anticipate that monday.com will post 2.34 EPS for the current year.

Insiders Place Their Bets

In other monday.com news, Director Aviad Eyal sold 2,000 shares of the company's stock in a transaction on Tuesday, October 20th. The stock was sold at an average price of $100.04, for a total transaction of $200,080.00. Following the completion of the sale, the director directly owned 203,455 shares in the company, valued at $20,353,638.20. This represents a 0.97% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 22.30% of the stock is owned by insiders.

Hedge Funds Weigh In On monday.com

A number of institutional investors and hedge funds have recently bought and sold shares of MNDY. SEB Asset Management AB bought a new stake in shares of monday.com in the 1st quarter valued at about $1,639,000. Swiss National Bank increased its stake in shares of monday.com by 28.6% in the first quarter. Swiss National Bank now owns 159,100 shares of the company's stock valued at $10,995,000 after buying an additional 35,400 shares during the period. Empowered Funds LLC increased its stake in shares of monday.com by 4,194.6% in the first quarter. Empowered Funds LLC now owns 14,430 shares of the company's stock valued at $997,000 after buying an additional 14,094 shares during the period. Public Employees Retirement System of Ohio bought a new position in shares of monday.com during the second quarter worth about $970,000. Finally, Arkadios Wealth Advisors bought a new position in shares of monday.com during the first quarter worth about $1,534,000. Institutional investors and hedge funds own 73.70% of the company's stock.

Key Stories Impacting monday.com

Here are the key news stories impacting monday.com this week:

• Positive Sentiment: Q3 earnings beat estimates: monday.com reported $2.14 per share versus analysts’ consensus of about $1.41–$1.43. Revenue of $377.54 million also topped forecasts of $369.17 million and grew 19.1% year over year. Monday.com Tops Q3 Earnings and Revenue Estimates
• Negative Sentiment: Despite the earnings and sales beats, the company’s revenue forecast fell short of expectations, raising concerns about the pace of future growth. That outlook appears to be the main reason shares were under pressure. Monday.com Stock Drops. Strong Earnings Come With a Growth Warning.
• Negative Sentiment: Traders bought 14,663 put options on Monday, about 550% above the average daily volume of 2,257. The surge may indicate increased hedging or bearish positioning, though options activity alone does not establish traders’ outlook.

About monday.com

monday.com Ltd. is a software company that provides a cloud-based platform for organizations to plan, manage and track work. Founded in 2012 as dapulse, the company adopted the monday.com name in 2017.

Its products include monday work management, monday CRM, monday dev and monday service. The platform offers tools for project and workflow management, customer relationship management, software development and service operations, with features for collaboration, automation and reporting.

Headquartered in Tel Aviv, Israel, monday.com serves customers across a range of industries and geographies.

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