Royal Bank of Canada Forecasts Strong Price Appreciation for SolarWinds (NYSE:SWI) Stock

SolarWinds (NYSE:SWI - Get Free Report) had its price objective upped by equities researchers at Royal Bank of Canada from $13.00 to $16.00 in a report issued on Tuesday,Benzinga reports. The brokerage presently has a "sector perform" rating on the software maker's stock. Royal Bank of Canada's price objective indicates a potential upside of 11.51% from the stock's previous close.

A number of other research firms also recently issued reports on SWI. Robert W. Baird boosted their target price on shares of SolarWinds from $14.00 to $15.00 and gave the company a "neutral" rating in a research report on Friday, November 1st. Wedbush initiated coverage on shares of SolarWinds in a report on Thursday, December 19th. They set an "outperform" rating and a $20.00 price objective on the stock. Five research analysts have rated the stock with a hold rating and one has assigned a buy rating to the stock. According to MarketBeat.com, the stock has an average rating of "Hold" and an average target price of $15.50.

SolarWinds Trading Up 2.1 %

Shares of NYSE:SWI traded up $0.30 during trading on Tuesday, reaching $14.35. The stock had a trading volume of 397,054 shares, compared to its average volume of 421,996. SolarWinds has a 52 week low of $10.14 and a 52 week high of $14.94. The company has a debt-to-equity ratio of 0.88, a quick ratio of 0.71 and a current ratio of 0.71. The firm's fifty day moving average is $13.95 and its 200 day moving average is $13.02. The stock has a market cap of $2.45 billion, a price-to-earnings ratio of 65.22 and a beta of 0.94.

SolarWinds (NYSE:SWI - Get Free Report) last issued its quarterly earnings results on Thursday, October 31st. The software maker reported $0.27 earnings per share for the quarter, topping analysts' consensus estimates of $0.25 by $0.02. The firm had revenue of $200.03 million during the quarter, compared to the consensus estimate of $194.03 million. SolarWinds had a return on equity of 7.96% and a net margin of 4.93%. The business's revenue was up 5.5% compared to the same quarter last year. During the same period last year, the business posted $0.11 EPS. As a group, equities analysts forecast that SolarWinds will post 0.74 EPS for the current fiscal year.

Insiders Place Their Bets

In other SolarWinds news, insider Jason Bliss sold 135,000 shares of the business's stock in a transaction that occurred on Monday, November 4th. The stock was sold at an average price of $13.02, for a total transaction of $1,757,700.00. Following the completion of the sale, the insider now directly owns 838,789 shares of the company's stock, valued at approximately $10,921,032.78. The trade was a 13.86 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CEO Sudhakar Ramakrishna sold 200,000 shares of the firm's stock in a transaction that occurred on Thursday, November 7th. The shares were sold at an average price of $13.68, for a total value of $2,736,000.00. Following the completion of the transaction, the chief executive officer now owns 2,212,171 shares in the company, valued at $30,262,499.28. This represents a 8.29 % decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 351,000 shares of company stock worth $4,703,780. Insiders own 1.95% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in the company. GAMMA Investing LLC raised its stake in shares of SolarWinds by 344.7% during the 3rd quarter. GAMMA Investing LLC now owns 2,068 shares of the software maker's stock worth $27,000 after purchasing an additional 1,603 shares during the period. Allworth Financial LP raised its position in SolarWinds by 732.1% in the third quarter. Allworth Financial LP now owns 3,786 shares of the software maker's stock worth $49,000 after acquiring an additional 3,331 shares during the period. Allspring Global Investments Holdings LLC boosted its stake in 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 acquiring an additional 1,001 shares during the last quarter. West Tower Group LLC grew its position in shares of SolarWinds by 38.3% during the 3rd quarter. West Tower Group LLC now owns 7,221 shares of the software maker's stock valued at $94,000 after acquiring an additional 2,000 shares during the period. Finally, Point72 Asset Management L.P. increased its stake in shares of SolarWinds by 74.5% during the 2nd quarter. Point72 Asset Management L.P. now owns 9,425 shares of the software maker's stock worth $114,000 after purchasing an additional 4,025 shares during the last quarter. 93.96% of the stock is owned by 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.