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Spot Secondary Powers Coupa Software Inc (COUP) Higher

Although secondary offerings typically cause stocks to fall, Coupa’s offering has been the exception to the rule. Coupa Software Inc (NASDAQ:COUP) surged 13.7% on Wednesday after the company priced a spot secondary of 4.4 million shares at $25.25 each. Originally planned to be 3.7 million shares, the company and its underwriters raised the offering size to 4.4 million shares due to strong demand. On the account of the fact that most of the shares sold from the offering were from third party holders, Coupa Software Inc (NASDAQ:COUP) will get only around $2 million in net proceeds. Due to Wednesday’s solid performance, shares of unified, cloud-based spend management platform maker have surged almost 16% year-to-date, far outpacing the NASDAQ’s 8.4% advance.

What Does The Smart Money Sentiment Say?

At Insider Monkey, we’ve developed an investment strategy that has delivered market-beating returns over the past 12 months. Our strategy identifies the 100 best-performing funds of the previous quarter from among the collection of 700+ successful funds that we track in our database, which we accomplish using our returns methodology. We then study the portfolios of those 100 funds using the latest 13F data to uncover the 30 most popular mid-cap stocks (market caps of between $1 billion and $10 billion) among them to hold until the next filing period. This strategy delivered 39.7% gains over the past 12 months and outperformed the 24.1% gain enjoyed by the S&P 500 ETFs. Our enhanced small-cap hedge fund strategy returned more than 45% over the last 12 months and outperformed SPY by more than 30 percentage points over the last 4.5 years (see details here).

According to our data, 7 elite funds had a bullish position in Coupa Software Inc (NASDAQ:COUP) at the end of the fourth quarter, up 7 funds from the previous quarter. The amount held by those 7 funds amounted to $152.3 million at the end of the fourth quarter, good for 12.2% of Coupa’s float at the time.

The Bottom Line

Coupa Software Inc (NASDAQ:COUP) shares have surged higher due to a secondary offering. For more reading, check out ‘11 Cities With The Highest Demand for Software Engineers‘.

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