Jefferies took its SolarWinds [SWI] rating to the equivalent of Hold from 18, and the price target to $15.0 from $Buy, in a research note dated 2021-01-11. That figure represents around a -2.18% premium from where the company’s shares closed on Friday. Other analysts also revised their coverage, with Robert W. Baird’s analysts downgrading the shares from “an Outperform” rating to “a Neutral” rating in a research note to investors issued in late December. Meanwhile, Berenberg had launched its coverage on SWI with “Buy”, in a research note produced for clients October 07, 2020. In addition, there was a downgrade from Credit Suisse on April 23, 2020. The rater changed SWI from “an Outperform” to “a Neutral”.
Is SolarWinds Corporation [NYSE:SWI] a Good Buy Right Now?
It should be noted that SWI technical indicators for short, intermediate as well as long term progress have placed an overall average of 56% as Sell. The average signal changed from 40% Sell in the last week and compares with 100% Buy in the past month. Data from SolarWinds Corporation’s Trend Spotter indicated that the signals were Weakest. The stock current average is 4.26 million shares in the past 20 days and the short term average signal indicates a 100% Sell. In the last 50 days, the average trading volume was 2.03 million shares while the medium term average advocated for Hold. The average long-term signal stands at 50% Sell and the 100-day average volume stands at 1.23 million shares.
SWI Price Performance
On Wall Street, SolarWinds Corporation [NYSE:SWI] finished Friday’s session up 4.56% at $15.35. The stock went up to $15.81 at the same session while its lowest single day price was $14.68. In the last five days, it saw a rise of about 2.68%, SolarWinds Corporation shares gained by almost 2.68% since the beginning of the year. However, the share price has dropped to as low as -36.94% below its one year high. On 01/08/21, the company shares recorded $15.81, the highest single-day price it has got to in the last 52-weeks and a 52-week low was seen on 01/06/21, the same year at $14.03. The company’s shares have declined by -19.13% in the past year. The 50-day SMA achieved is $19.96 while the 200-day SMA is $19.01. Volume gained to 6.69 million from 2.2 million in the previous session.
SolarWinds Corporation [SWI] Valuation Measures
Notably, SolarWinds Corporation [SWI] stock cannot be classified as a good candidate in the listing of underestimated low-priced Software – Infrastructure companies to purchase soonest possible with the prevailing 12-month PE ratio of 124.80. The measure means the stock is exchanging at a premium as compared to the 32.29x trailing earnings of the industry. It can be helpful for investors to consider historical price-sales ratio, more specifically, a 4.60 PS value ratio is reported for the last one year of reported earnings. That is higher than the industry average of 2.97 which means SWI serve an unattractive investment opportunity compared to its competitors.
SWI Stock Support And Resistance Levels
On the 24-hour scale, the immediate backing is perceived around 14.75 level, and in case of violation of this particular level, it will cause more drop to 14.15 level. On the upper level, 16.41 is still the key resistance. The stock may increase to the subsequent resistance at 15.88. The Relative Strength Index (RSI) pinned on the 14-day chart is 34.98, implying a neutral technical stance while the MACD stands at -0.25, meaning price will decrease in the next trading period. Percent R indicator moved to 64.14%, implying low price movement. Stochastic %K at 20.84% suggest selling the stock.
What is the short interest in SolarWinds Corporation?
Short interest in the SolarWinds Corporation stock has surged, increasing by 0.35 million shares to total 3.42 million shares on Dec 14, 2020. The interest had seen shares on Nov 12, 2020 stand at 3.77 million, data from Yahoo Finance shows. The decrease of -10.23% suggests the stock saw some decreased bullish sentiment. The stock’s days to cover (short ratio) moved to while the shorted shares account for just 4.70% of the overall float for the stock.
SolarWinds Corporation’s Biggest Shareholders: Who Owns SolarWinds Corporation [SWI]?
Filings by ArrowMark Colorado Holdings LLC showed that the firm now holds a total of 7,464,004 shares or roughly 2.38% of the outstanding SWI shares. This means their shares have reduced by -322,067 from the 7,464,004 the investor reportedly held in its prior 13-F filing. With the conclusion of the sale, Brown Brothers Harriman & Co. updated stake is worth $136,298,883. Details in the latest 13F filings reveal that The Vanguard Group, Inc. disposed off their -1.92% stake valued at $122,974,829 while Fairview Capital Investment Manag added theirs at $120,704,698. During the last quarter, The Vanguard Group, Inc. liquidated -105,352 of its shares in SolarWinds Corporation while Fairview Capital Investment Manag bought 87,975 shares. The Neuberger Berman Investment Advis’s holdings currently number 4,959,467 shares at $76127818.45. According to the firm’s last 13F report, BlackRock Fund Advisors shares in the company at filing stood at 2,446,915 shares, roughly $55,985,415.
SWI Earnings Forecast For The Current Quarter
SolarWinds Corporation [SWI] is expected to report strong earnings results for the quarter ending on Dec 2020. Consensus estimates give the company expected revenues of $263.91M and an earnings per share of $0.25 for Dec 2020. Looking further ahead, the company is expected to report revenue of $265.87M at an EPS of $0.24 for Mar 2021. The estimates represent upside of 9.20% and 6.03% in the company’s revenue and earnings per share, respectively, on a year-on-year basis.
SWI Earnings Estimates For The Current Year
For the financial year, SolarWinds Corporation [NYSE:SWI] is expected to bring in revenue of $1.02B. The returns are nearly $81.54 million higher than the company’s actual revenue recorded in the fiscal year 2019. In terms of EPS for the 2020, estimate put it at 0.98, higher than that of FY19 by $0.13. Estimates put this year’s earnings growth at 15.30%, 6.10% for the next, and at an annual 15.40% over the next 5-year period. As for sales, forecasts are for an increase of 8.50% in the current fiscal year and a further 9.20% over the following year.