SolarWinds (NYSE:SWI) Sets New 52-Week High – Should You Buy?

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 trading hands. The stock had previously closed at $13.69.

Wall Street Analysts Forecast Growth

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

SolarWinds Stock Down 0.5 %

The firm has a market cap of $2.48 billion, a PE ratio of 65.50 and a beta of 0.96. 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 business has a fifty day moving average price of $13.13 and a two-hundred day moving average price of $12.46.

SolarWinds (NYSE:SWI) last posted its quarterly earnings results on Thursday, October 31st. The software maker reported $0.27 earnings per share for the quarter, beating 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 firm had revenue of $200.03 million for the quarter, compared to analyst estimates of $194.03 million. During the same period in the previous year, the firm earned $0.11 earnings per share. SolarWinds’s quarterly revenue was up 5.5% on a year-over-year basis. On average, analysts anticipate that SolarWinds Co. will post 0.74 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, insider Jason Bliss sold 135,000 shares of the company’s stock in a transaction dated Monday, November 4th. The stock was sold at an average price of $13.02, for a total transaction of $1,757,700.00. Following the completion of the sale, the insider now owns 838,789 shares in the company, valued at approximately $10,921,032.78. This represents a 13.86 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, CEO Sudhakar Ramakrishna sold 200,000 shares of the 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 sale, the chief executive officer now owns 2,212,171 shares of the company’s stock, valued at approximately $30,262,499.28. The trade was a 8.29 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 351,000 shares of company stock valued at $4,703,780 in the last three months. Insiders own 1.95% of the company’s stock.

Hedge Funds Weigh In On SolarWinds

Several institutional investors and hedge funds have recently made changes to their positions in SWI. Price T Rowe Associates Inc. MD grew its position in shares of SolarWinds by 7.0% in the first quarter. Price T Rowe Associates Inc. MD now owns 32,746 shares of the software maker’s stock valued at $414,000 after purchasing an additional 2,145 shares during the last quarter. CWM LLC boosted its holdings in shares of SolarWinds by 282.6% in the 2nd quarter. CWM LLC now owns 8,980 shares of the software maker’s stock valued at $108,000 after purchasing an additional 6,633 shares in the last quarter. Bank of New York Mellon Corp raised its position in SolarWinds by 9.6% during the 2nd quarter. Bank of New York Mellon Corp now owns 279,792 shares of the software maker’s stock worth $3,371,000 after purchasing an additional 24,400 shares during the last quarter. Migdal Insurance & Financial Holdings Ltd. acquired a new stake in SolarWinds during the 2nd quarter worth about $58,000. Finally, Innealta Capital LLC acquired a new stake in shares of SolarWinds in the 2nd quarter valued at about $79,000. Institutional investors and hedge funds own 93.96% of the company’s stock.

About SolarWinds

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.