SolarWinds (NYSE:SWI) Reaches New 12-Month High – Still a Buy?

SolarWinds Co. (NYSE:SWI) shares hit a new 52-week high during trading on Friday . The stock traded as high as $13.43 and last traded at $13.42, with a volume of 101780 shares trading hands. The stock had previously closed at $13.06.

Analysts Set New Price Targets

A number of analysts have commented on the company. Robert W. Baird reduced their target price on SolarWinds from $15.00 to $14.00 and set a “neutral” rating for the company in a report on Friday, August 2nd. Scotiabank initiated coverage on SolarWinds in a report on Friday, September 13th. They issued a “sector perform” rating and a $13.00 price objective for the company. Five analysts have rated the stock with a hold rating, Based on data from MarketBeat, the stock currently has a consensus rating of “Hold” and an average price target of $13.80.

SolarWinds Price Performance

The stock has a market capitalization of $2.22 billion, a P/E ratio of 188.86 and a beta of 0.97. The company has a debt-to-equity ratio of 0.92, a quick ratio of 0.62 and a current ratio of 0.62. The firm has a fifty day moving average price of $12.72 and a two-hundred day moving average price of $12.02.

SolarWinds (NYSE:SWI) last posted its quarterly earnings data on Thursday, August 1st. The software maker reported $0.26 EPS for the quarter, beating analysts’ consensus estimates of $0.23 by $0.03. The company had revenue of $193.30 million during the quarter, compared to analysts’ expectations of $188.67 million. SolarWinds had a return on equity of 7.14% and a net margin of 2.96%. SolarWinds’s revenue for the quarter was up 4.5% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.12 earnings per share. As a group, analysts expect that SolarWinds Co. will post 0.71 EPS for the current fiscal year.

Institutional Trading of SolarWinds

Several large investors have recently added to or reduced their stakes in the business. GAMMA Investing LLC raised its position in SolarWinds by 344.7% in the third quarter. GAMMA Investing LLC now owns 2,068 shares of the software maker’s stock worth $27,000 after acquiring an additional 1,603 shares during the period. nVerses Capital LLC bought a new position in SolarWinds in the 2nd quarter worth $41,000. Migdal Insurance & Financial Holdings Ltd. purchased a new position in SolarWinds during the second quarter valued at $58,000. Ameritas Investment Partners Inc. bought a new stake in SolarWinds during the first quarter valued at about $62,000. Finally, Allspring Global Investments Holdings LLC increased its position 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 worth $66,000 after buying an additional 1,001 shares in the last quarter. 93.96% of the stock is currently 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.