SolarWinds (NYSE:SWI) Share Price Passes Above Two Hundred Day Moving Average - Here's Why

SolarWinds Co. (NYSE:SWI - Get Free Report)'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 traded.

Analyst Ratings Changes

SWI has been the topic of several recent research reports. Robert W. Baird lifted their price objective on SolarWinds from $14.00 to $15.00 and gave the stock a "neutral" rating in a report on Friday, November 1st. Wedbush began coverage on SolarWinds in a research note on Thursday, December 19th. They issued an "outperform" rating and a $20.00 price objective on the stock. Finally, Scotiabank started coverage on SolarWinds in a research report on Friday, September 13th. They set a "sector perform" rating and a $13.00 target price for the company. Five analysts have rated the stock with a hold rating and one has assigned a buy rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of "Hold" and an average price target of $15.00.

SolarWinds Stock Down 1.8 %

The firm has a fifty day moving average price of $13.91 and a 200 day moving average price of $12.93. The firm has a market capitalization of $2.35 billion, a price-to-earnings 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 - Get Free Report) last announced its earnings results on Thursday, October 31st. The software maker reported $0.27 earnings per share for the quarter, beating analysts' consensus estimates of $0.25 by $0.02. SolarWinds had a return on equity of 7.96% and a net margin of 4.93%. The company had revenue of $200.03 million during the quarter, compared to analyst estimates of $194.03 million. During the same period last year, the company posted $0.11 earnings per share. The firm's quarterly revenue was up 5.5% compared to the same quarter last year. Sell-side analysts anticipate that SolarWinds Co. will post 0.74 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, Director William G. Bock sold 16,000 shares of SolarWinds stock in a transaction on Tuesday, November 5th. The stock was sold at an average price of $13.13, for a total transaction of $210,080.00. Following the completion of the sale, the director now directly owns 88,857 shares of the company's stock, valued at $1,166,692.41. The trade was a 15.26 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider Jason Bliss sold 135,000 shares of the stock in a transaction dated Monday, November 4th. The shares were sold at an average price of $13.02, for a total value of $1,757,700.00. Following the completion of the transaction, the insider now directly owns 838,789 shares in the company, valued at $10,921,032.78. The trade was a 13.86 % decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders have sold 351,000 shares of company stock valued at $4,703,780. 1.95% of the stock is currently owned by corporate insiders.

Institutional Trading of SolarWinds

Institutional investors and hedge funds have recently modified their holdings of the stock. Dimensional Fund Advisors LP grew its stake in shares of SolarWinds by 8.7% during the 2nd quarter. Dimensional Fund Advisors LP now owns 5,776,309 shares of the software maker's stock worth $69,603,000 after acquiring an additional 461,061 shares in the last quarter. State Street Corp grew its position in SolarWinds by 57.5% in the third quarter. State Street Corp now owns 2,193,026 shares of the software maker's stock valued at $28,619,000 after purchasing an additional 800,467 shares in the last quarter. Geode Capital Management LLC increased its stake in SolarWinds by 1.3% in the 3rd 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 last quarter. Scalar Gauge Management LLC lifted its position in SolarWinds by 11.3% during the 2nd quarter. Scalar Gauge Management LLC now owns 834,060 shares of the software maker's stock worth $10,050,000 after buying an additional 85,000 shares in the last quarter. Finally, AQR Capital Management LLC boosted its stake in shares of SolarWinds by 48.5% during the 2nd quarter. AQR Capital Management LLC now owns 825,829 shares of the software maker's stock worth $9,869,000 after buying an additional 269,578 shares during the last quarter. 93.96% of the stock is owned by 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.