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

Shares of SolarWinds Co. (NYSE:SWI) hit a new 52-week high during mid-day 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 Analyst Weigh In

A number of research firms have commented on SWI. Scotiabank initiated coverage on SolarWinds in a research note on Friday, September 13th. They set a “sector perform” rating and a $13.00 price objective on the stock. Robert W. Baird increased their target price on SolarWinds from $14.00 to $15.00 and gave the stock a “neutral” rating in a report on Friday, November 1st. Five analysts have rated the stock with a hold rating, Based on data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus price target of $14.00.

SolarWinds Trading Down 0.8 %

The firm’s 50-day simple moving average is $13.32 and its 200 day simple moving average is $12.55. The company has a debt-to-equity ratio of 0.88, a current ratio of 0.71 and a quick ratio of 0.71. The firm has a market capitalization of $2.51 billion, a price-to-earnings ratio of 66.91 and a beta of 0.96.

SolarWinds (NYSE:SWI) last announced its quarterly earnings data on Thursday, October 31st. The software maker reported $0.27 earnings per share for the quarter, topping the consensus estimate of $0.25 by $0.02. SolarWinds had a return on equity of 7.96% and a net margin of 4.93%. The business had revenue of $200.03 million during the quarter, compared to the consensus estimate of $194.03 million. During the same period in the prior year, the company earned $0.11 EPS. SolarWinds’s revenue for the quarter was up 5.5% on a year-over-year basis. Equities analysts expect that SolarWinds Co. will post 0.74 earnings per share for the current year.

Insider Activity

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

Hedge Funds Weigh In On SolarWinds

Several institutional investors and hedge funds have recently added to or reduced their stakes in SWI. GAMMA Investing LLC increased its holdings in SolarWinds by 344.7% in the third quarter. GAMMA Investing LLC now owns 2,068 shares of the software maker’s stock valued at $27,000 after purchasing an additional 1,603 shares during the period. nVerses Capital LLC acquired a new position in shares of SolarWinds in the 2nd quarter valued at about $41,000. Allworth Financial LP lifted its stake in SolarWinds by 732.1% in the third quarter. Allworth Financial LP now owns 3,786 shares of the software maker’s stock valued at $49,000 after buying an additional 3,331 shares during the period. Migdal Insurance & Financial Holdings Ltd. acquired a new stake in SolarWinds in the second quarter worth $58,000. Finally, Allspring Global Investments Holdings LLC grew its stake in shares of SolarWinds by 24.6% in the 3rd quarter. Allspring Global Investments Holdings LLC now owns 5,071 shares of the software maker’s stock valued at $66,000 after buying an additional 1,001 shares during the period. 93.96% of the stock is currently owned by institutional investors and hedge funds.

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.