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

SolarWinds Co. (NYSE:SWI) shares hit a new 52-week high on Wednesday . The company traded as high as $15.20 and last traded at $15.15, with a volume of 89918 shares changing hands. The stock had previously closed at $14.99.

Analysts Set New Price Targets

SWI has been the topic of a number of analyst reports. Robert W. Baird lifted their price objective on SolarWinds from $14.00 to $15.00 and gave the company a “neutral” rating in a report on Friday, November 1st. Royal Bank of Canada lifted their price objective on SolarWinds from $13.00 to $16.00 and gave the company a “sector perform” rating in a report on Tuesday, January 21st. Wedbush assumed coverage on SolarWinds in a report on Thursday, December 19th. They issued an “outperform” rating and a $20.00 price objective on the stock. Finally, Scotiabank lifted their price target on shares of SolarWinds from $13.00 to $15.00 and gave the company a “sector perform” rating in a research report on Tuesday, January 21st. Four research analysts have rated the stock with a hold rating and one has given a buy rating to the company’s stock. According to data from MarketBeat, SolarWinds presently has a consensus rating of “Hold” and a consensus price target of $15.80.

SolarWinds Stock Performance

The company has a debt-to-equity ratio of 0.88, a quick ratio of 0.71 and a current ratio of 0.71. The company has a market capitalization of $2.60 billion, a PE ratio of 69.41 and a beta of 0.94. The company has a 50 day moving average price of $14.29 and a 200 day moving average price of $13.25.

Insider Transactions at SolarWinds

In other news, CEO Sudhakar Ramakrishna sold 200,000 shares of SolarWinds stock in a transaction dated Thursday, November 7th. The stock was sold at an average price of $13.68, for a total transaction of $2,736,000.00. Following the completion of the sale, the chief executive officer now directly owns 2,212,171 shares in the company, valued at $30,262,499.28. The trade was a 8.29 % decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Company insiders own 1.95% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in SWI. GAMMA Investing LLC increased its position in shares of SolarWinds by 344.7% during the third quarter. GAMMA Investing LLC now owns 2,068 shares of the software maker’s stock valued at $27,000 after purchasing an additional 1,603 shares during the period. R Squared Ltd bought a new stake in shares of SolarWinds during the fourth quarter valued at approximately $38,000. Allworth Financial LP increased its position in shares of SolarWinds by 732.1% during 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. Allspring Global Investments Holdings LLC increased its position in shares of SolarWinds by 24.6% during 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. Finally, West Tower Group LLC increased its position in shares of SolarWinds by 38.3% during the third quarter. West Tower Group LLC now owns 7,221 shares of the software maker’s stock valued at $94,000 after purchasing an additional 2,000 shares during the period. 93.96% of the stock is 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.