SolarWinds (NYSE:SWI) Share Price Crosses Above 200 Day Moving Average – Should You Sell?

SolarWinds Co. (NYSE:SWI)’s stock price crossed 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 changing hands.

Analyst Upgrades and Downgrades

Several equities analysts recently commented on the stock. Robert W. Baird upped their price target on shares of SolarWinds from $14.00 to $15.00 and gave the company a “neutral” rating in a report on Friday, November 1st. Wedbush assumed coverage on shares of SolarWinds in a research note on Thursday, December 19th. They issued an “outperform” rating and a $20.00 target price on the stock. Five investment analysts have rated the stock with a hold rating and one has issued a buy rating to the company. According to data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus price target of $15.00.

SolarWinds Price Performance

The firm’s 50-day moving average price is $13.91 and its two-hundred day moving average price is $12.93. The stock has a market cap of $2.35 billion, a PE ratio of 62.73 and a beta of 0.94. The company has a current ratio of 0.71, a quick ratio of 0.71 and a debt-to-equity ratio of 0.88.

SolarWinds (NYSE:SWI) last posted its earnings results on Thursday, October 31st. The software maker reported $0.27 EPS for the quarter, beating analysts’ consensus estimates of $0.25 by $0.02. SolarWinds had a net margin of 4.93% and a return on equity of 7.96%. The company had revenue of $200.03 million during the quarter, compared to analysts’ expectations of $194.03 million. During the same quarter in the prior year, the company posted $0.11 earnings per share. SolarWinds’s revenue for the quarter was up 5.5% compared to the same quarter last year. On average, equities analysts expect that SolarWinds Co. will post 0.74 earnings per share for the current fiscal year.

Insider Activity at SolarWinds

In other news, Director William G. Bock sold 16,000 shares of the firm’s stock in a transaction dated Tuesday, November 5th. The shares were sold at an average price of $13.13, for a total value of $210,080.00. Following the transaction, the director now directly owns 88,857 shares of the company’s stock, valued at approximately $1,166,692.41. This trade represents a 15.26 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, 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 transaction, the chief executive officer now directly owns 2,212,171 shares in the company, 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 over the last 90 days. Insiders own 1.95% of the company’s stock.

Hedge Funds Weigh In On SolarWinds

Institutional investors have recently bought and sold shares of the company. 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 acquiring an additional 1,603 shares during the last quarter. 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 acquiring an additional 3,331 shares during the last quarter. Allspring Global Investments Holdings LLC grew its holdings in shares of SolarWinds by 24.6% in 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 in the last quarter. West Tower Group LLC grew its holdings in shares of SolarWinds by 38.3% in 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 in the last quarter. Finally, Point72 Asset Management L.P. grew its holdings in shares of SolarWinds by 74.5% in the second quarter. Point72 Asset Management L.P. now owns 9,425 shares of the software maker’s stock valued at $114,000 after purchasing an additional 4,025 shares in the last quarter. 93.96% of the stock is owned by hedge funds and other institutional investors.

SolarWinds Company Profile

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.