SolarWinds (NYSE:SWI) Stock Passes Above Two Hundred Day Moving Average – Time to Sell?

SolarWinds Co. (NYSE:SWI)’s stock price passed above its 200-day moving average during trading on Friday . The stock has a 200-day moving average of $12.91 and traded as high as $13.90. SolarWinds shares last traded at $13.80, with a volume of 391,715 shares traded.

Analyst Upgrades and Downgrades

Several research analysts recently commented on the company. Robert W. Baird boosted their price target on SolarWinds from $14.00 to $15.00 and gave the stock a “neutral” rating in a research note on Friday, November 1st. Wedbush initiated coverage on SolarWinds in a report on Thursday, December 19th. They issued an “outperform” rating and a $20.00 price objective for the company. Finally, 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 research analysts have rated the stock with a hold rating and one has given a buy rating to the company’s stock. Based on data from MarketBeat.com, SolarWinds currently has an average rating of “Hold” and an average price target of $15.00.

SolarWinds Price Performance

The company has a market capitalization of $2.35 billion, a P/E ratio of 62.73 and a beta of 0.94. The company has a fifty day moving average price of $13.90 and a 200 day moving average price of $12.91. 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 posted its 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. The company had revenue of $200.03 million during the quarter, compared to analyst estimates of $194.03 million. SolarWinds had a return on equity of 7.96% and a net margin of 4.93%. The business’s revenue was up 5.5% compared to the same quarter last year. During the same period in the prior year, the company earned $0.11 earnings per share. On average, sell-side analysts forecast that SolarWinds Co. will post 0.74 EPS for the current fiscal year.

Insider Buying and Selling

In other SolarWinds news, Director William G. Bock sold 16,000 shares of the company’s stock in a transaction that occurred on Tuesday, November 5th. The stock was sold at an average price of $13.13, for a total value of $210,080.00. Following the completion of the sale, the director now directly owns 88,857 shares in the company, valued at $1,166,692.41. This represents a 15.26 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CEO Sudhakar Ramakrishna sold 200,000 shares of the company’s stock in a transaction that occurred on Thursday, November 7th. The stock was sold at an average price of $13.68, for a total value of $2,736,000.00. Following the completion of the sale, the chief executive officer now owns 2,212,171 shares of the company’s stock, valued at $30,262,499.28. This trade represents a 8.29 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 351,000 shares of company stock valued at $4,703,780 in the last three months. 1.95% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On SolarWinds

A number of institutional investors have recently added to or reduced their stakes in the company. Dimensional Fund Advisors LP lifted its position in SolarWinds by 8.7% in the second quarter. Dimensional Fund Advisors LP now owns 5,776,309 shares of the software maker’s stock worth $69,603,000 after purchasing an additional 461,061 shares during the period. State Street Corp lifted its position in SolarWinds by 57.5% in the third quarter. State Street Corp now owns 2,193,026 shares of the software maker’s stock worth $28,619,000 after purchasing an additional 800,467 shares during the period. Geode Capital Management LLC lifted its position in SolarWinds by 1.3% in the third quarter. Geode Capital Management LLC now owns 1,290,044 shares of the software maker’s stock worth $16,839,000 after purchasing an additional 16,730 shares during the period. Scalar Gauge Management LLC lifted its position in shares of SolarWinds by 11.3% during the 2nd quarter. Scalar Gauge Management LLC now owns 834,060 shares of the software maker’s stock valued at $10,050,000 after acquiring an additional 85,000 shares during the last quarter. Finally, AQR Capital Management LLC lifted its position in shares of SolarWinds by 48.5% during the 2nd quarter. AQR Capital Management LLC now owns 825,829 shares of the software maker’s stock valued at $9,869,000 after acquiring an additional 269,578 shares during the last quarter. 93.96% of the stock is currently owned by institutional investors and hedge funds.

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.