SolarWinds (NYSE:SWI) Stock Price Down 3.7% - Should You Sell?

SolarWinds Co. (NYSE:SWI - Get Free Report)'s share price dropped 3.7% during mid-day trading on Monday . The company traded as low as $12.69 and last traded at $12.71. Approximately 133,884 shares traded hands during mid-day trading, a decline of 76% from the average daily volume of 548,263 shares. The stock had previously closed at $13.20.

Analysts Set New Price Targets

SWI has been the topic of a number of recent analyst reports. Robert W. Baird cut their price target on shares of SolarWinds from $15.00 to $14.00 and set a "neutral" rating on the stock in a report on Friday, August 2nd. Scotiabank initiated coverage on shares of SolarWinds in a report on Friday, September 13th. They issued a "sector perform" rating and a $13.00 price target on the stock. Five equities research analysts have rated the stock with a hold rating, According to data from MarketBeat, the stock presently has a consensus rating of "Hold" and an average target price of $13.80.

SolarWinds Stock Performance

The company's 50-day moving average price is $12.67 and its 200 day moving average price is $12.00. The company has a debt-to-equity ratio of 0.92, a quick ratio of 0.62 and a current ratio of 0.62. The stock has a market capitalization of $2.16 billion, a PE ratio of 183.79 and a beta of 0.97.

SolarWinds (NYSE:SWI - Get Free Report) last posted its earnings results on Thursday, August 1st. The software maker reported $0.26 EPS for the quarter, topping the consensus estimate of $0.23 by $0.03. SolarWinds had a net margin of 2.96% and a return on equity of 7.14%. The firm had revenue of $193.30 million during the quarter, compared to analysts' expectations of $188.67 million. During the same period last year, the company posted $0.12 EPS. The company's quarterly revenue was up 4.5% compared to the same quarter last year. On average, equities research analysts expect that SolarWinds Co. will post 0.71 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the business. GAMMA Investing LLC lifted its position in SolarWinds by 344.7% during the 3rd 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 period. nVerses Capital LLC purchased a new position in SolarWinds during the 2nd quarter valued at about $41,000. Migdal Insurance & Financial Holdings Ltd. purchased a new position in SolarWinds during the 2nd quarter valued at about $58,000. Ameritas Investment Partners Inc. purchased a new position in SolarWinds during the 1st quarter valued at about $62,000. Finally, Innealta Capital LLC purchased a new position in SolarWinds during the 2nd quarter valued at about $79,000. 93.96% of the stock is owned by hedge funds and other institutional investors.

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.