SailPoint Inc (NASDAQ:SAIL) stock is up 5.3% to trade at $19.95 at last check, after an upgrade at J.P. Morgan Securities to "overweight" from "neutral." The analyst in coverage cited the artificial intelligence (AI)-driven identity security name's potential for best-in-class growth, higher margins, and improved free cash flow.
The majority of analysts were already bullish on SAIL coming into today, with 11 of the 17 in coverage sporting a "buy" or better rating. Additionally, the 12-month consensus target price of $26.15 is a 31.5% premium to current levels.
Publicly traded since February, today's pop is cutting into the equity's 11.4% quarter-to-date deficit. The stock is today bouncing off the $18 level, which acted as resistance in May, but has some ground to cover before it catches back up to its Feb. 18, record high of $26.25.
Short covering could provide further tailwinds, however. Short interest makes up 19.4% of the equity's available float, and would take nearly six days to cover, at SAIL's average pace of trading.
Amid low absolute volume, options traders are targeting SailPoint stock at triple the intraday average rate. The most active contracts are August 20 and March 20 puts, with new positions currently being sold to open at the latter.
