PreMarket Prep Stock Of The Day: Cloudera

Benzinga's PreMarket Prep airs every morning from 8-9 a.m. ET. During that fast-paced, highly informative hour, traders and investors tune in to get the major news of the day, the catalysts behind those moves and the corresponding price action for the upcoming session.

On any given day, the show will cover at least 20 stocks determined by co-hosts Joel Elconin and Dennis Dick along with producer Spencer Israel.

Not all technology stocks in the same arena are treated equally. While issues such as Envestnet, ACI Worldwide and Everbridge have performed very well, Cloudera CLDR has not and is the PreMarket Prep Stock Of The Day.

The Company: Cloudera is a United States-based software company. It has developed platforms for data management, machine learning, and advanced analytics. The company's platform enables organizations to use vast amounts of data from a variety of sources, including the Internet of Things (IoT), to better serve and market to their customers, design connected products and services and reduce risk through greater insight from data.

Long-Term Performance: The company went public in April 2017 and its opening print was $17.80. It put it in a double top on the monthly chart (May-$23.35 and June-$23.32) and has never seen those again.

Its initial descent bottomed in June 2019 at $4.89. That rebound was capped by another double top on the monthly chart in December 2019 ($12.04) and January 2020 ($12.22).

Interestingly, it bottomed just below its all-time low in March at $4.76 and began to rebound.

Takeover Chatter That Never Materialized: On June 18, the issue rallied from $12.64 to $13.71, reached $13.93, and ended the session at $13.71. The rumors never came to fruition and the issue backed off to the $11 area. It made another run at the $14 area in Sept. 2 off a Q2 beat and raised guidance.

On that day, it made its high for the rebound at $14.39 but retreated to end the session at $13.24 and back under $11 only three days following the report.

It didn't find a bottom until Oct. 28 at $9.34 and mounted a modest rally and ended Thursday’s session at $11.58.

Q3 Beat, Raised Guidance: After the close on Thursday, the company announced a Q3 EPS beat of 6 cents along with a sales beat of $8.74 million. The company raised Q4 sales guidance and Q4 and FY 2021 adjusted EPS and sales guidance.

Price Action During The Show: When the issue was being covered during the show it was trading at the $13 area. Dennis Dick called it the “dog of the cloud stocks" and said, "it has room to $14, but I am not excited about it."

It was noted that the issue first needed to clear the premarket high of $13.40 in order to make an attempt to clear $14.

Price Action During The Regular Session: After a higher open, it peaked just above the premarket high at $13.50 and reversed course. The ensuing decline found support well ahead of the top of Thursday’s range ($11.65) at $12.18 and rallied to $12.63 as of 1:30 p.m. ET.