SolarWinds (NYSE:SWI) Sets New 52-Week High – Still a Buy?

SolarWinds Co. (NYSE:SWI)’s share price hit a new 52-week high during trading on Tuesday . The stock traded as high as $13.47 and last traded at $13.47, with a volume of 354153 shares changing hands. The stock had previously closed at $13.12.

Analysts Set New Price Targets

Several research analysts recently issued reports on the stock. Robert W. Baird increased their price target on shares of SolarWinds from $14.00 to $15.00 and gave the stock a “neutral” rating in a research note on Friday. Scotiabank initiated coverage on SolarWinds in a report on Friday, September 13th. They issued a “sector perform” rating and a $13.00 target price on the stock. Five research analysts have rated the stock with a hold rating, According to data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus target price of $14.00.

SolarWinds Stock Performance

The firm’s 50 day moving average is $12.73 and its 200 day moving average is $12.16. 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 stock has a market cap of $2.27 billion, a P/E ratio of 60.32 and a beta of 0.96.

SolarWinds (NYSE:SWI) last posted its quarterly earnings results on Thursday, October 31st. The software maker reported $0.27 EPS for the quarter, beating the consensus estimate of $0.25 by $0.02. SolarWinds had a net margin of 4.93% and a return on equity of 7.99%. The company had revenue of $200.03 million for the quarter, compared to analyst estimates of $194.03 million. During the same period in the prior year, the company earned $0.11 earnings per share. The firm’s revenue was up 5.5% on a year-over-year basis. Analysts anticipate that SolarWinds Co. will post 0.71 EPS for the current year.

Institutional Trading of SolarWinds

A number of hedge funds have recently added to or reduced their stakes in the company. Allspring Global Investments Holdings LLC increased its stake in shares of SolarWinds by 28.3% in the 1st quarter. Allspring Global Investments Holdings LLC now owns 10,633 shares of the software maker’s stock worth $134,000 after acquiring an additional 2,343 shares during the last quarter. ProShare Advisors LLC lifted its position in shares of SolarWinds by 14.4% during the first quarter. ProShare Advisors LLC now owns 12,420 shares of the software maker’s stock worth $157,000 after purchasing an additional 1,565 shares in the last quarter. Foundry Partners LLC grew its holdings in shares of SolarWinds by 11.6% in the first quarter. Foundry Partners LLC now owns 484,521 shares of the software maker’s stock valued at $6,115,000 after purchasing an additional 50,537 shares in the last quarter. Ameritas Investment Partners Inc. purchased a new stake in SolarWinds during the 1st quarter worth about $62,000. Finally, Price T Rowe Associates Inc. MD increased its holdings in shares of SolarWinds by 7.0% in the 1st quarter. Price T Rowe Associates Inc. MD now owns 32,746 shares of the software maker’s stock valued at $414,000 after acquiring an additional 2,145 shares during the last quarter. 93.96% of the stock is 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.