It’s Time To Focus On The Long Run With SolarWinds Corporation (SWI) stock

The closing price of SolarWinds Corporation (NYSE: SWI) was $9.24 for the day, up 0.65% from the previous closing price of $9.18. In other words, the price has increased by $+0.06 from its previous closing price. On the day, 575795 shares were traded. SWI stock price reached its highest trading level at $9.39 during the session, while it also had its lowest trading level at $9.03.

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Our analysis of SWI’s different ratios will help us gain a deeper understanding of the company. It provided that stocks Price–to–Cash (P/C) ratio for the trailing twelve months (TTM) is standing at 3.04 whereas its Price-to-Free Cash Flow (P/FCF) for the term is 11.09. For the most recent quarter (mrq), Quick Ratio is recorded 1.50 and its Current Ratio is at 1.50. In the meantime, Its Debt-to-Equity ratio is 1.22 whereas as Long-Term Debt/Eq ratio is at 1.20.

Upgrades & Downgrades

In addition, analysts’ ratings and any changes thereto give investors an idea of the stock’s future direction. In the most recent recommendation for the company, JP Morgan on December 14, 2021, Downgraded its rating to Neutral and sets its target price to $16 from $23 previously.

On October 29, 2021, RBC Capital Mkts Downgraded its rating to Sector Perform which previously was Outperform and also lowered its target price recommendation from $28 to $19.

Berenberg Downgraded its Buy to Hold on August 04, 2021, while the target price for the stock was maintained at $24.

Insider Transactions:

Also, insider trades can serve as a great indicator of what management thinks about the future direction of a stock’s price. A recent insider transaction in this stock occurred on Dec 07 when Bliss Jason sold 899 shares for $8.50 per share. The transaction valued at 7,642 led to the insider holds 596,811 shares of the business.

Bliss Jason sold 7,650 shares of SWI for $65,331 on Dec 05. The Chief Administrative Officer now owns 597,710 shares after completing the transaction at $8.54 per share.

Valuation Measures:

For the stock, the TTM Price-to-Sale (P/S) ratio is 2.08 while its Price-to-Book (P/B) ratio in mrq is 1.14.

Stock Price History:

Over the past 52 weeks, SWI has reached a high of $14.36, while it has fallen to a 52-week low of $7.51. The 50-Day Moving Average of the stock is 8.91, while the 200-Day Moving Average is calculated to be 10.00.

Shares Statistics:

SWI traded an average of 348.21K shares per day over the past three months and 320.16k shares per day over the past ten days. A total of 161.11M shares are outstanding, with a floating share count of 40.77M. Insiders hold about 1.70% of the company’s shares, while institutions hold 98.20% stake in the company. Shares short for SWI as of Oct 13, 2022 were 2.38M with a Short Ratio of 2.06M, compared to 2.33M on Sep 14, 2022. Therefore, it implies a Short% of Shares Outstanding of 1.48% and a Short% of Float of 4.92%.

Earnings Estimates

The firm’s stock currently is rated by 7 analysts. On average, analysts expect EPS of $0.2 for the current quarter, with a high estimate of $0.21 and a low estimate of $0.19, while EPS last year was $0.37. The consensus estimate for the next quarter is $0.19, with high estimates of $0.2 and low estimates of $0.18.

Analysts are recommending an EPS of between $0.85 and $0.83 for the fiscal current year, implying an average EPS of $0.84. EPS for the following year is $0.94, with 7 analysts recommending between $1.08 and $0.77.

Revenue Estimates

It is expected that $90B in revenue will be generated in the current quarter, according to 6 analysts. It ranges from a high estimate of $183M to a low estimate of $180.34M. As of the current estimate, SolarWinds Corporation’s year-ago sales were $178.57M, an estimated increase of 2.00% from the year-ago figure. For the next quarter, 6 analysts are estimating revenue of $185.64M, a decrease of -0.60% less than the figure of $2.00% in the same quarter last year. There is a high estimate of $187.2M for the next quarter, whereas the lowest estimate is $183.2M.

A total of 7 analysts have provided revenue estimates for SWI’s current fiscal year. The highest revenue estimate was $723M, while the lowest revenue estimate was $714.41M, resulting in an average revenue estimate of $719.62M. In the same quarter a year ago, actual revenue was $718.63M, up 0.10% from the average estimate. Based on 7 analysts’ estimates, the company’s revenue will be $749.41M in the next fiscal year. The high estimate is $770.9M and the low estimate is $718.8M. The average revenue growth estimate for next year is up 4.10% from the average revenue estimate for this year.