SolarWinds (NYSE:SWI) Sees Strong Trading Volume – Still a Buy?

Shares of SolarWinds Co. (NYSE:SWI) saw unusually-strong trading volume on Thursday . Approximately 1,006,982 shares were traded during trading, an increase of 33% from the previous session’s volume of 754,398 shares.The stock last traded at $18.42 and had previously closed at $18.43.

Analysts Set New Price Targets

A number of equities research analysts recently issued reports on the stock. Royal Bank of Canada increased their target price on shares of SolarWinds from $13.00 to $16.00 and gave the stock a “sector perform” rating in a research report on Tuesday, January 21st. Scotiabank raised their price target on SolarWinds from $15.00 to $18.50 and gave the stock a “sector perform” rating in a research report on Monday, February 10th. Wedbush downgraded SolarWinds from an “outperform” rating to a “neutral” rating and dropped their price objective for the company from $20.00 to $18.50 in a report on Friday, February 7th. Robert W. Baird raised their target price on SolarWinds from $15.00 to $18.50 and gave the stock a “neutral” rating in a report on Monday, February 10th. Finally, Truist Financial reaffirmed 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. Five analysts have rated the stock with a hold rating, Based on data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus price target of $18.00.

SolarWinds Price Performance

The company has a debt-to-equity ratio of 0.85, a quick ratio of 0.71 and a current ratio of 0.85. The firm has a market capitalization of $3.19 billion, a price-to-earnings ratio of 29.26 and a beta of 0.93. The company has a 50-day moving average of $17.58 and a 200-day moving average of $14.94.

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

Institutional Trading of SolarWinds

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Vanguard Group Inc. lifted 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 valued at $97,831,000 after buying an additional 192,198 shares during the last quarter. Dimensional Fund Advisors LP boosted its holdings in shares of SolarWinds by 6.9% during the 4th 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 grew 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 valued at $64,019,000 after purchasing an additional 142,541 shares during the last quarter. State Street Corp raised its stake in SolarWinds by 57.5% in the 3rd quarter. State Street Corp now owns 2,193,026 shares of the software maker’s stock worth $28,619,000 after purchasing an additional 800,467 shares in the last quarter. Finally, Wellington Management Group LLP increased its holdings in shares of SolarWinds by 93.3% during the fourth quarter. Wellington Management Group LLP now owns 2,174,522 shares of the software maker’s stock worth $30,987,000 after purchasing an additional 1,049,310 shares during the period. 93.96% of the stock is owned by 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.