SolarWinds (NYSE:SWI) Sees Unusually-High Trading Volume – Still a Buy?

SolarWinds Co. (NYSE:SWI) saw unusually-strong trading volume on Thursday . Approximately 1,307,678 shares traded hands during mid-day trading, an increase of 38% from the previous session’s volume of 945,222 shares.The stock last traded at $18.31 and had previously closed at $18.31.

Wall Street Analyst Weigh In

Several research analysts have weighed in on SWI shares. Wedbush downgraded SolarWinds from an “outperform” rating to a “neutral” rating and lowered their target price for the company from $20.00 to $18.50 in a research note on Friday, February 7th. Scotiabank lifted their target price on SolarWinds from $15.00 to $18.50 and gave the company a “sector perform” rating in a research note on Monday, February 10th. Truist Financial restated a “hold” rating and issued a $18.50 price target (up from $13.00) on shares of SolarWinds in a research note on Monday, February 10th. Robert W. Baird lifted their price target on SolarWinds from $15.00 to $18.50 and gave the company a “neutral” rating in a research note on Monday, February 10th. Finally, Royal Bank of Canada lifted their price objective on SolarWinds from $13.00 to $16.00 and gave the stock a “sector perform” rating in a report on Tuesday, January 21st. Five analysts have rated the stock with a hold rating, Based on data from MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus target price of $18.00.

SolarWinds Price Performance

The stock has a market capitalization of $3.14 billion, a price-to-earnings ratio of 29.07 and a beta of 0.94. The company has a 50 day moving average of $15.25 and a 200 day moving average of $13.79. The company has a quick ratio of 0.71, a current ratio of 0.85 and a debt-to-equity ratio of 0.85.

SolarWinds (NYSE:SWI) last posted its quarterly earnings results on Wednesday, February 12th. The software maker reported $0.41 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.27 by $0.14. SolarWinds had a return on equity of 12.19% and a net margin of 14.04%. As a group, equities research analysts forecast that SolarWinds Co. will post 0.75 EPS for the current fiscal year.

Institutional Investors Weigh In On SolarWinds

Several institutional investors and hedge funds have recently modified their holdings of the stock. Vanguard Group Inc. boosted its position in shares of SolarWinds by 2.9% in the fourth quarter. Vanguard Group Inc. now owns 6,865,366 shares of the software maker’s stock worth $97,831,000 after buying an additional 192,198 shares during the period. Dimensional Fund Advisors LP boosted its position in shares of SolarWinds by 6.9% in the fourth quarter. Dimensional Fund Advisors LP now owns 6,698,697 shares of the software maker’s stock worth $95,456,000 after buying an additional 433,905 shares during the period. Voss Capital LP boosted its position in shares of SolarWinds by 3.3% in the fourth quarter. Voss Capital LP now owns 4,492,541 shares of the software maker’s stock worth $64,019,000 after buying an additional 142,541 shares during the period. State Street Corp lifted its stake in shares of SolarWinds by 57.5% in the third 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 in the last quarter. Finally, Wellington Management Group LLP lifted its stake in shares of SolarWinds by 93.3% in the fourth quarter. Wellington Management Group LLP now owns 2,174,522 shares of the software maker’s stock worth $30,987,000 after acquiring an additional 1,049,310 shares in the last quarter. Hedge funds and other institutional investors own 93.96% of the company’s stock.

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.