Options Trade – Tableau Software Inc (NYSE:DATA) Calls 
Monday, August 04, 2014

**OPTIONS TRADE: Buy the DATA Oct 2014 75.000 call (DATA141018C00075000) at or under $1.65, good for the day. Place a protective stop limit at $0.60 and a pre-determined sell at $3.30.

by Ian Harvey

August 04, 2014

Introduction

On Thursday, Tableau Software Inc (NYSE: DATA), a computer software company, presented stronger-than-expected second quarter earnings results, as well as having no fewer than four price-target hikes and one upgrade, was down 6% after this information . This means that there is definitely plenty of scope for DATA to recover some lost ground and to provide a profit from this recommended options trade.

Technical Details

Shares of Tableau Software traded down 4.71% on Friday, hitting $61.94. The stock had a trading volume of 3,907,423 shares. Tableau Software has a 52 week low of $52.02 and a 52 week high of $102.37. The stock’s 50-day moving average is $65.33 and its 200-day moving average is $71.90. The company has a market cap of $4.230 billion and a P/E ratio of 1250.00.

Earnings

Tableau Software’s reported results for its second quarter ending June 30, 2014 are:-

• Total revenues were $90.7 million, up 82% year over year.

• License revenues were $60.4 million, up 80% year over year.

• Diluted GAAP loss per share was $0.07; diluted non-GAAP earnings per share were $0.05.

"We continued our momentum in the second quarter with over 80% revenue growth," said Christian Chabot, CEO and President. "With the new Tableau 8.2 release, we brought Tableau to the Mac and enabled our customers to tell stories with data in a new way."

Growth

In addition to growing revenues, Tableau achieved other notable business milestones:

• Launched Tableau 8.2, bringing Tableau to the Mac and storytelling to everyone with a new Story Points feature.

• Recognized by Gartner as the fastest growing business intelligence software provider for 2013.

• Closed 157 sales orders greater than $100,000 and added over 2,200 new customer accounts in the second quarter of 2014.

• International revenues were up more than 100% over the prior year quarter.

• Held four regional Tableau Conferences in Sydney, The Hague, Munich and London, with over 1,000 customer and partner attendees in total.

Analysts Opinions

Tableau Software‘s stock had its “outperform” rating restated by investment analysts at Robert W. Baird in a note issued to investors on Friday. They currently have a $85.00 price objective on the stock. Robert W. Baird’s price target suggests a potential upside of 37.23% from the stock’s previous close.

The company has been the subject of a number of other research reports:-

• Analysts at FBR Capital Markets reiterated a “market perform” rating on shares of Tableau Software in a research note on Friday. They now have a $78.00 price target on the stock.

• Separately, analysts at RBC Capital reiterated a “sector perform” rating on shares of Tableau Software in a research note on Friday. They now have a $78.00 price target on the stock.

• Finally, analysts at Mizuho upgraded shares of Tableau Software from a “neutral” rating to a “buy” rating in a research note on Friday. They now have a $80.00 price target on the stock, up previously from $65.00.

Five equities research analysts have rated the stock with a hold rating and nine have issued a buy rating to the company. Tableau Software currently has a consensus rating of “Buy” and an average price target of $84.81.

Conclusion

Therefore, based on the facts above the following options trade is recommended…..


**OPTIONS TRADE: Buy the DATA Oct 2014 75.000 call (DATA141018C00075000) at or under $1.65, good for the day. Place a protective stop limit at $0.60 and a pre-determined sell at $3.30.



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