Zacks Investment Research Lowers SolarWinds (NYSE:SWI) to Hold

Zacks Investment Research cut shares of SolarWinds (NYSE:SWI) from a buy rating to a hold rating in a research report report published on Tuesday, Zacks.com reports.

According to Zacks, “SolarWinds Corporation designs and develops information technology management software. The Company offers solutions consisting of network performance monitoring, configuration, virtualization, database management, hosted logs, security and configuration. SolarWinds Corporation is based in TX, United States. “

A number of other equities analysts also recently commented on the company. Citigroup raised their price objective on SolarWinds from $20.00 to $23.00 and gave the stock a buy rating in a report on Monday, May 6th. Goldman Sachs Group downgraded SolarWinds from a neutral rating to a sell rating and dropped their price objective for the stock from $20.00 to $17.50 in a research note on Sunday, June 30th. Jefferies Financial Group boosted their price objective on SolarWinds from $21.00 to $23.00 and gave the stock a buy rating in a research note on Thursday, April 25th. Finally, ValuEngine downgraded SolarWinds from a hold rating to a sell rating in a research note on Tuesday, July 2nd. Two investment analysts have rated the stock with a sell rating, five have assigned a hold rating and ten have given a buy rating to the company’s stock. The company currently has an average rating of Hold and a consensus price target of $19.43.

Shares of SolarWinds stock traded down $0.47 during midday trading on Tuesday, hitting $17.13. The company had a trading volume of 2,597 shares, compared to its average volume of 684,661. SolarWinds has a 12-month low of $12.25 and a 12-month high of $21.22. The company has a current ratio of 1.51, a quick ratio of 1.51 and a debt-to-equity ratio of 0.73. The stock has a market capitalization of $5.22 billion and a PE ratio of 30.07. The business has a fifty day moving average price of $18.29.

SolarWinds (NYSE:SWI) last announced its quarterly earnings data on Thursday, August 1st. The software maker reported $0.18 EPS for the quarter, missing the Zacks’ consensus estimate of $0.19 by ($0.01). SolarWinds had a return on equity of 8.67% and a net margin of 67.62%. The company had revenue of $230.60 million for the quarter, compared to analyst estimates of $226.51 million. SolarWinds’s revenue was up 14.3% compared to the same quarter last year. As a group, sell-side analysts anticipate that SolarWinds will post 0.82 earnings per share for the current fiscal year.

In other news, CEO Kevin B. Thompson sold 19,158 shares of the business’s stock in a transaction on Monday, May 13th. The stock was sold at an average price of $18.97, for a total transaction of $363,427.26. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, VP W. Joseph Kim sold 4,530 shares of the business’s stock in a transaction on Monday, May 20th. The stock was sold at an average price of $19.58, for a total value of $88,697.40. The disclosure for this sale can be found here. Insiders have sold 2,690,902 shares of company stock worth $46,953,909 over the last ninety days. 1.60% of the stock is owned by insiders.

Several hedge funds have recently modified their holdings of SWI. Aperio Group LLC bought a new position in shares of SolarWinds in the 2nd quarter valued at about $34,000. Bank of Montreal Can bought a new position in shares of SolarWinds during the 1st quarter valued at $35,000. BNP Paribas Arbitrage SA bought a new position in shares of SolarWinds during the 2nd quarter valued at $36,000. Meeder Asset Management Inc. bought a new position in shares of SolarWinds during the 1st quarter valued at $65,000. Finally, Machina Capital S.A.S. grew its holdings in shares of SolarWinds by 4,590.0% during the 2nd quarter. Machina Capital S.A.S. now owns 4,690 shares of the software maker’s stock valued at $86,000 after purchasing an additional 4,590 shares during the last quarter. Institutional investors and hedge funds own 93.04% of the company’s stock.

SolarWinds Company Profile

SolarWinds Corporation provides information technology (IT) infrastructure management software products in the United States and internationally. It offers products to monitor and manage network, system, desktop, application, storage, and database and Website infrastructures, whether on-premise, in the public or private cloud, or in a hybrid IT infrastructure.

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