SolarWinds Co. (NYSE:SWI) Sees Significant Drop in Short Interest

SolarWinds Co. (NYSE:SWI) saw a large drop in short interest in October. As of October 31st, there was short interest totalling 1,930,000 shares, a drop of 21.9% from the October 15th total of 2,470,000 shares. Based on an average trading volume of 514,500 shares, the days-to-cover ratio is currently 3.8 days. Approximately 4.0% of the shares of the company are short sold.

Insider Transactions at SolarWinds

In related news, Director William G. Bock sold 16,000 shares of the company’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 completion of the sale, the director now owns 88,857 shares of the company’s stock, valued at $1,166,692.41. This represents a 15.26 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, insider Jason Bliss sold 135,000 shares of the stock in a transaction that occurred on Monday, November 4th. The shares were sold at an average price of $13.02, for a total transaction of $1,757,700.00. Following the completion of the transaction, the insider now owns 838,789 shares of the company’s stock, valued at $10,921,032.78. This trade represents a 13.86 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders sold 351,000 shares of company stock worth $4,703,780. 1.95% of the stock is currently owned by corporate insiders.

Institutional Trading of SolarWinds

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. GAMMA Investing LLC raised its stake in shares of SolarWinds by 344.7% in the third quarter. GAMMA Investing LLC now owns 2,068 shares of the software maker’s stock valued at $27,000 after purchasing an additional 1,603 shares in the last quarter. nVerses Capital LLC bought a new position in shares of SolarWinds in the second quarter worth about $41,000. Allworth Financial LP lifted its holdings in SolarWinds by 732.1% during the 3rd quarter. Allworth Financial LP now owns 3,786 shares of the software maker’s stock worth $49,000 after buying an additional 3,331 shares in the last quarter. Migdal Insurance & Financial Holdings Ltd. bought a new position in SolarWinds in the second quarter valued at about $58,000. Finally, Ameritas Investment Partners Inc. bought a new stake in shares of SolarWinds during the first quarter worth approximately $62,000. 93.96% of the stock is currently owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

A number of brokerages have recently issued reports on SWI. Robert W. Baird boosted their target price on SolarWinds from $14.00 to $15.00 and gave the stock a “neutral” rating in a research report on Friday, November 1st. Scotiabank initiated coverage on SolarWinds in a report on Friday, September 13th. They set a “sector perform” rating and a $13.00 price objective on the stock. Five equities research analysts have rated the stock with a hold rating, According to data from MarketBeat, the company currently has an average rating of “Hold” and an average price target of $14.00.

SolarWinds Stock Down 1.9 %

SWI stock traded down $0.26 during trading hours on Friday, hitting $13.18. The company’s stock had a trading volume of 328,388 shares, compared to its average volume of 700,161. The company has a market capitalization of $2.25 billion, a PE ratio of 59.91 and a beta of 0.96. The stock has a 50 day moving average price of $12.90 and a two-hundred day moving average price of $12.30. The company has a quick ratio of 0.71, a current ratio of 0.71 and a debt-to-equity ratio of 0.88. SolarWinds has a 12 month low of $10.14 and a 12 month high of $14.02.

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

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.