SolarWinds (NYSE:SWI) Sets New 1-Year High on Earnings Beat

SolarWinds Co. (NYSE:SWI)’s stock price reached a new 52-week high during mid-day trading on Thursday following a stronger than expected earnings report. The company traded as high as $19.00 and last traded at $18.33, with a volume of 148 shares trading hands. The stock had previously closed at $18.31.

The software maker reported $0.41 earnings per share for the quarter, beating analysts’ consensus estimates of $0.27 by $0.14. SolarWinds had a net margin of 4.93% and a return on equity of 7.96%.

Wall Street Analysts Forecast Growth

Several research firms have recently weighed in on SWI. Robert W. Baird increased their price target on SolarWinds from $15.00 to $18.50 and gave the stock a “neutral” rating in a research note on Monday. Royal Bank of Canada increased their target price on shares of SolarWinds from $13.00 to $16.00 and gave the stock a “sector perform” rating in a research report on Tuesday, January 21st. Truist Financial reissued a “hold” rating and issued a $18.50 price target (up previously from $13.00) on shares of SolarWinds in a research report on Monday. Wedbush downgraded shares of SolarWinds from an “outperform” rating to a “neutral” rating and cut their price objective for the stock from $20.00 to $18.50 in a report on Friday, February 7th. Finally, Scotiabank increased their target price on SolarWinds from $15.00 to $18.50 and gave the stock a “sector perform” rating in a research report on Monday. Five investment analysts have rated the stock with a hold rating, According to data from MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus target price of $18.00.

Hedge Funds Weigh In On SolarWinds

Large investors have recently modified their holdings of the company. Vanguard Group Inc. lifted its stake in SolarWinds by 2.9% in the 4th quarter. Vanguard Group Inc. now owns 6,865,366 shares of the software maker’s stock worth $97,831,000 after purchasing an additional 192,198 shares in the last quarter. State Street Corp increased its holdings in shares of 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. Wellington Management Group LLP raised its position in shares of SolarWinds by 93.3% in the fourth quarter. Wellington Management Group LLP now owns 2,174,522 shares of the software maker’s stock worth $30,987,000 after buying an additional 1,049,310 shares in the last quarter. Geode Capital Management LLC boosted its stake in SolarWinds by 1.3% during the third quarter. Geode Capital Management LLC now owns 1,290,044 shares of the software maker’s stock valued at $16,839,000 after buying an additional 16,730 shares during the period. Finally, Fisher Asset Management LLC purchased a new stake in shares of SolarWinds in the 4th quarter valued at about $13,886,000. 93.96% of the stock is currently owned by institutional investors.

SolarWinds Trading Up 0.1 %

The stock has a 50-day moving average price of $14.73 and a 200-day moving average price of $13.47. The stock has a market cap of $3.13 billion, a P/E ratio of 83.30 and a beta of 0.94. The company has a debt-to-equity ratio of 0.88, a quick ratio of 0.71 and a current ratio of 0.71.

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.