SolarWinds (NYSE:SWI) Sets New 52-Week High – Here’s Why

SolarWinds Co. (NYSE:SWI) hit a new 52-week high on Wednesday . The company traded as high as $14.07 and last traded at $14.05, with a volume of 166391 shares traded. The stock had previously closed at $13.69.

Analyst Upgrades and Downgrades

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

SolarWinds Stock Performance

The stock has a market capitalization of $2.47 billion, a price-to-earnings ratio of 62.28 and a beta of 0.96. The firm has a fifty day moving average of $13.06 and a 200 day moving average of $12.43. The company has a debt-to-equity ratio of 0.88, a current ratio of 0.71 and a quick ratio of 0.71.

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

Insiders Place Their Bets

In other news, insider Jason Bliss sold 135,000 shares of the firm’s stock in a transaction that occurred on Monday, November 4th. The stock was sold at an average price of $13.02, for a total value of $1,757,700.00. Following the transaction, the insider now owns 838,789 shares in the company, valued at $10,921,032.78. This trade represents a 13.86 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, CEO Sudhakar Ramakrishna sold 200,000 shares of the firm’s stock in a transaction that occurred 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 transaction, the chief executive officer now owns 2,212,171 shares in the company, valued at approximately $30,262,499.28. This trade represents a 8.29 % decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 351,000 shares of company stock worth $4,703,780. 1.95% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On SolarWinds

Institutional investors have recently added to or reduced their stakes in the stock. GAMMA Investing LLC lifted its position in SolarWinds by 344.7% during the third quarter. GAMMA Investing LLC now owns 2,068 shares of the software maker’s stock worth $27,000 after buying an additional 1,603 shares in the last quarter. nVerses Capital LLC purchased a new position in SolarWinds during the second quarter worth approximately $41,000. Allworth Financial LP lifted its position in SolarWinds by 732.1% during the third quarter. Allworth Financial LP now owns 3,786 shares of the software maker’s stock worth $49,000 after buying an additional 3,331 shares in the last quarter. Migdal Insurance & Financial Holdings Ltd. purchased a new position in SolarWinds during the second quarter worth approximately $58,000. Finally, Allspring Global Investments Holdings LLC lifted its position in SolarWinds by 24.6% during the third quarter. Allspring Global Investments Holdings LLC now owns 5,071 shares of the software maker’s stock worth $66,000 after buying an additional 1,001 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.