SolarWinds (NYSE:SWI) Sees Large Volume Increase – Still a Buy?

SolarWinds Co. (NYSE:SWI) saw unusually-strong trading volume on Thursday . Approximately 1,307,678 shares traded hands during 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

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

SolarWinds Stock Performance

The business has a 50-day moving average of $15.11 and a two-hundred day moving average of $13.70. The company has a market cap of $3.12 billion, a P/E ratio of 29.07 and a beta of 0.94. 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 issued its quarterly earnings data on Wednesday, February 12th. The software maker reported $0.41 earnings per share for the quarter, beating analysts’ consensus estimates of $0.27 by $0.14. SolarWinds had a return on equity of 12.39% and a net margin of 14.04%. On average, sell-side analysts predict that SolarWinds Co. will post 0.75 EPS for the current fiscal year.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of SWI. CWM LLC raised its position in SolarWinds by 91.8% during the third quarter. CWM LLC now owns 17,222 shares of the software maker’s stock valued at $225,000 after acquiring an additional 8,242 shares in the last quarter. Allspring Global Investments Holdings LLC grew its holdings in SolarWinds by 24.6% in the third quarter. Allspring Global Investments Holdings LLC now owns 5,071 shares of the software maker’s stock valued at $66,000 after purchasing an additional 1,001 shares during the period. Allworth Financial LP grew its holdings 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 purchasing an additional 3,331 shares during the period. Louisiana State Employees Retirement System acquired a new stake in SolarWinds in the third quarter valued at approximately $342,000. Finally, Wealth Enhancement Advisory Services LLC acquired a new stake in SolarWinds in the third quarter valued at approximately $191,000. 93.96% of the stock is currently owned by hedge funds and other institutional investors.

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.