SolarWinds (NYSE:SWI) Sets New 52-Week High – Still a Buy?

SolarWinds Co. (NYSE:SWI)’s stock price reached a new 52-week high during trading on Wednesday . The stock traded as high as $14.74 and last traded at $14.71, with a volume of 158559 shares trading hands. The stock had previously closed at $14.41.

Wall Street Analysts Forecast Growth

Several equities analysts have recently issued reports on the company. Scotiabank started coverage on SolarWinds in a research report on Friday, September 13th. They set a “sector perform” rating and a $13.00 price objective for the company. Robert W. Baird upped their price objective on shares of SolarWinds from $14.00 to $15.00 and gave the stock a “neutral” rating in a report on Friday, November 1st. Five equities research analysts have rated the stock with a hold rating, Based on data from MarketBeat.com, SolarWinds currently has an average rating of “Hold” and a consensus price target of $14.00.

SolarWinds Stock Up 2.2 %

The firm’s 50-day moving average price is $13.23 and its 200 day moving average price is $12.52. The company has a market capitalization of $2.51 billion, a price-to-earnings ratio of 65.50 and a beta of 0.96. The company has a current ratio of 0.71, a quick ratio of 0.71 and a debt-to-equity ratio of 0.88.

SolarWinds (NYSE:SWI) last posted its quarterly earnings data on Thursday, October 31st. The software maker reported $0.27 EPS for the quarter, beating analysts’ consensus estimates of $0.25 by $0.02. SolarWinds had a net margin of 4.93% and a return on equity of 7.96%. The company had revenue of $200.03 million for the quarter, compared to analyst estimates of $194.03 million. During the same period in the prior year, the firm posted $0.11 EPS. The company’s quarterly revenue was up 5.5% on a year-over-year basis. On average, sell-side analysts forecast that SolarWinds Co. will post 0.74 EPS for the current fiscal year.

Insider Transactions at SolarWinds

In other news, CEO Sudhakar Ramakrishna sold 200,000 shares of the company’s stock in a transaction on Thursday, November 7th. The shares were sold at an average price of $13.68, for a total value of $2,736,000.00. Following the completion of the sale, the chief executive officer now owns 2,212,171 shares of the company’s stock, valued at approximately $30,262,499.28. This represents a 8.29 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director William G. Bock sold 16,000 shares of the company’s stock in a transaction on Tuesday, November 5th. The shares were sold at an average price of $13.13, for a total transaction of $210,080.00. Following the sale, the director now owns 88,857 shares of the company’s stock, valued at $1,166,692.41. This represents a 15.26 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 351,000 shares of company stock worth $4,703,780 over the last quarter. Corporate insiders own 1.95% of the company’s stock.

Institutional Trading of SolarWinds

Several institutional investors have recently bought and sold shares of the company. Dimensional Fund Advisors LP boosted its holdings in shares of SolarWinds by 8.7% during the 2nd quarter. Dimensional Fund Advisors LP now owns 5,776,309 shares of the software maker’s stock valued at $69,603,000 after acquiring an additional 461,061 shares during the last quarter. State Street Corp raised its stake in SolarWinds by 57.5% during the 3rd quarter. State Street Corp now owns 2,193,026 shares of the software maker’s stock worth $28,619,000 after acquiring an additional 800,467 shares during the period. Geode Capital Management LLC raised its position in shares of SolarWinds by 1.3% during the third quarter. Geode Capital Management LLC now owns 1,290,044 shares of the software maker’s stock valued at $16,839,000 after buying an additional 16,730 shares during the last quarter. Scalar Gauge Management LLC grew its holdings in shares of SolarWinds by 11.3% in the second quarter. Scalar Gauge Management LLC now owns 834,060 shares of the software maker’s stock valued at $10,050,000 after purchasing an additional 85,000 shares in the last quarter. Finally, AQR Capital Management LLC boosted its stake in SolarWinds by 48.5% during the second quarter. AQR Capital Management LLC now owns 825,829 shares of the software maker’s stock worth $9,869,000 after buying an additional 269,578 shares during the period. 93.96% of the stock is owned by hedge funds and other institutional investors.

SolarWinds Company Profile

SolarWinds Corporation provides information technology (IT) management software products in the United States and internationally. It provides a suite of network management software that offers real-time visibility into network utilization and bandwidth, as well as the ability to detect, diagnose, and resolve network performance problems; and a suite of infrastructure management products, which monitors and analyzes the performance of applications and their supporting infrastructure, including servers, physical, virtual and cloud infrastructure, storage, and databases.