Stock News, US News

$IRNT- The DD to know going into next week. Technicals Included.

So, there's a lot of confusion to $IRNT and I want to provide my perspective. I'm not a professional trader or anything like that.

$IRNT rose based on a few important things. The company itself, Super 8-K Redemption, Option Chain activity, CTB%, and Short Interest, as well as the traction it attracted.

The company: They're a Cyber Security Solutions enterprise. Their investment partners are Kleiner Perkins, CS Capital, and ForgePoint Capital. (here) Their partners are Microsoft, AWS, CROWDSTRIKE, DomainTools, NUTANIX, Cortex XSoar, Paloalto, IBM Radar, Splunk, Splunk Soar, and SWIMLANE. (Here).

Quick Summary for this quarter:

  • Solutions provider for cyber attacks, IronNet Cybersecurity (NYSE:IRNT)FQ2 revenue jumped 23% to $6.1M, subscription revenue grew to $5.8M vs. $5.3M last year.
  • Annual Recurring Revenue (or ARR): $24.1M vs. $19.5M prior.
  • Customer Count: 51 compared to 22 last year.
  • Operating loss of $17M compared to $14.2M.
  • Net loss: $17.2M compared to $14.3M.
  • Cash and cash equivalents: $14.1M.
  • Outlook: “Our cloud-based subscription revenue — which grew to 60% of product revenue in the first half of the year, a 65% year-over-year growth rate — is a strong proof point for the business and underscores the fully recurring aspect of our financial model. Our cloud focus coupled with the large deal formation that we are seeing reflects IronNet’s ease of deployment and increasing market recognition, which keeps us on pace to double ARR in the third quarter and meet our growth objectives for the full year.” said James Gerber, CFO.
  • FY Guidance: Revenue of $43M-45M; ARR of $75M as of end of the fiscal year.
  • The stock has a market cap of $1.64B and has seen a jump in price of ~19% over the last five trading days.
  • Recent bullish rating on the stock by contributor who writes, 'IronNet Is Extremely Undervalued At $20'
  • Previously (Sept. 14): IronNet misses on revenue
  • Shares jump ~14% during pre-market hours.

Regarding the Super 8-K, this has reduced the float to anywhere between 1.3M to 6M. Additional, 8-K before Super 8-K filing for those who like to read these.

It's looking like the float is realistically between 2.7M – 3.5M. Extremely low and the reason why it moves so easily. Looks like on Friday the shorts and MM won that battle. SI% actually increased on Friday and every Call Above $30.00 was OTM and was definitely mostly written by MM's.

Here's the Option Chain for October 15th:

Option Activity for Oct. 15th

Short Interest was at 58% of the float before Friday, and the shorts have actually increased on Friday. Also, I can't access Ortex but I saw a video today of someone looking it up and saw the increase. Anyone with access to confirm on Monday would be great. Don't forget to use the shares amount shorted and divide by the current float.

The CTB% is above 500% this is from iborrowdesk. I know some will debate data etc, but even if you cut that in half thats still outrageous.

IBorrowDesk

When the weeks start and more data is published this will need to be monitored.

Technicals:

First off the Fibonacci Retracement (5 day, 5 Min):

Fibonacci Retracement (5 day, 5 Min).

Fibonacci Retracement (5 day, 5 Min).

You can also see my entry position with the green arrow. If this picture is too blurry, the support/resistances are $19.24, $27.11, $33.29, $37.63, $41.97, $47.34, and $56.06.

Started the line with the lowest point before September 14th. These are levels to check throughout the week and especially Monday and Tuesday. We're looking to support at $33.39. If we can maintain support above $27.11 and support strong resistance that'll be positive, if we break $27.11, the next resistance line is $19.24. This is were things can get weary as this can be a sign of a negative trend. Good thing is this company seems rock solid, and is being evaluated at <$20.00. But keep this in mind.

Looking to see if a Cup and Handle will form:

Cup and Handle Example

Cup and Handle Example

MACD:

MACD

MACD

RSI:

RSI: (Close,5) – $45.32, Oversold @ below $30.00, Overbought above $70.15, per RSI, 5 Day.

RSI: (Close,5) – $45.32, Oversold @ below $30.00, Overbought above $70.15, per RSI, 5 Day.

This is also a stock that is trending heavily, so, technicals can't be completely relied on. Only next week will determine that.

Google Trends:

7 Day Trend, Friday is still highly trending, the flat line is beacause of the weekend.

7 Day Trend, Friday is still highly trending, the flat line is beacause of the weekend.

30 Day Trend

30 Day Trend

With this stock closing at $30, if we test support we can very much expect bullish sentiments. If over the next few days support isn't being tested, then supports become resistance.

This stock is highly shorted, has a very large ITM Option Activity, very small float, and a high CTB%.

I think there's a lot that can come out of this stock, but also if the interest isn't there then probably not. Thing about this stock though is retail owns and can own the float until any PIPE lock ups expire.

That's something else that will be important to follow are the SEC filings for the lock ups.

Overall, this seems to be a solid company with a lot of growth up ahead.

"Its annual recurring revenue also noted a year-over-year growth in the recent quarter to $24.1 million. For the full financial year, IronNet now forecasts $75 million of ARR on up to $45 million in revenue." As of 3 days ago.

I'm not a professional trader what's so ever, I ordered Wendy's for supper. I have no idea where this could go, it really depends on a variety of factors but it's worth watching going into next week and October.

submitted by /u/ShortChecker
[link] [comments]

Jump To The Original Source

Facebook Comments

Check Also

Renault sells Russian branch, controlling interest in Avtovaz

Published by DPA French automaker Groupe Renault announced ...

Archives