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

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

Analysts Set New Price Targets

A number of equities analysts have weighed in on SWI shares. Robert W. Baird lowered their price target on SolarWinds from $15.00 to $14.00 and set a “neutral” rating on the stock in a research report on Friday, August 2nd. Scotiabank started coverage on SolarWinds in a report on Friday, September 13th. They set 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, the stock presently has a consensus rating of “Hold” and an average target price of $13.80.

SolarWinds Price Performance

The company’s 50-day simple moving average is $12.71 and its 200-day simple moving average is $12.01. The company has a debt-to-equity ratio of 0.92, a current ratio of 0.62 and a quick ratio of 0.62. The stock has a market capitalization of $2.24 billion, a price-to-earnings ratio of 187.57 and a beta of 0.97.

SolarWinds (NYSE:SWI) last released its quarterly earnings results on Thursday, August 1st. The software maker reported $0.26 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.23 by $0.03. The business had revenue of $193.30 million during the quarter, compared to the consensus estimate of $188.67 million. SolarWinds had a return on equity of 7.14% and a net margin of 2.96%. The firm’s quarterly revenue was up 4.5% on a year-over-year basis. During the same period in the previous year, the company posted $0.12 EPS. Research analysts forecast that SolarWinds Co. will post 0.71 earnings per share for the current fiscal year.

Institutional Investors Weigh In On SolarWinds

Several institutional investors have recently made changes to their positions in SWI. CWM LLC increased its stake in SolarWinds by 91.8% during the 3rd quarter. CWM LLC now owns 17,222 shares of the software maker’s stock worth $225,000 after acquiring an additional 8,242 shares during the period. GAMMA Investing LLC increased its position in shares of 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 purchasing an additional 1,603 shares during the period. SG Americas Securities LLC acquired a new position in SolarWinds in the third quarter valued at about $385,000. Sanctuary Advisors LLC bought a new stake in SolarWinds during the second quarter worth about $230,000. Finally, Point72 Asset Management L.P. grew its stake in SolarWinds by 74.5% during the second quarter. Point72 Asset Management L.P. now owns 9,425 shares of the software maker’s stock worth $114,000 after buying an additional 4,025 shares in the last quarter. 93.96% of the stock is currently owned by 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.