Why Should You Put SolarWinds Corporation (NYSE: SWI) On Your Portfolio?


    ArrowMark Colorado Holdings LLC recently announced the acquisition of new stake in SolarWinds Corporation (NYSE:SWI). The institutional investor has increased its shareholding in the Technology company by 3.29% to 7.9 million shares with purchase of 0.25 million shares. This fresh investment now brings its stake to 2.53% valued currently at $139.58 million. In addition, Brown Brothers Harriman & Co. (In. raised its holdings by 0.66 million to 4.63 million shares. And Sunriver Management LLC has lifted its position by 33.07% or 0.85 million shares – to 3.41 million shares.

    With over 0.44 million SolarWinds Corporation (SWI) shares trading Tuesday and a closing price of $18.56 on the day, the dollar volume was approximately $8.25 million. The shares have shown a positive weekly performance of 4.56% and its price on 07/21/20 lost nearly -0.22%. Currently, there are 308.94M common shares owned by the public and among those 52.73M shares have been available to trade.

    An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 14 analysts who have offered their price forecasts for SWI have a consensus price objective of $19.21. The analysts have set the share’s price value over the next 12 months at a high of $25.00 and a low of $14.00 should the stock experience a downside. Incidentally, analysts’ outlook for the SolarWinds Corporation stock is 2.50 for the next 12 months. The average price target is 3.03% above its last price level and an upside to the estimated low will see the stock lose -32.57% over that period. But an upside of 25.76% will see the stock hit the forecast high price target while mean target price for the stock is $19.50.

    Insiders at the company have transacted a total of 0 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 0 of these insider trades were purchases, accounting for 0 shares. Insider sales of the common stock occurred on 0 occasions, with total insider shares sold totaling 0 shares.

    The top 3 mutual fund holders in SolarWinds Corporation are Vanguard Explorer Fund, Meridian Growth Fund, and ETFMG Prime Cyber Security ETF. Vanguard Explorer Fund owns 2.67 million shares of the company’s stock, all valued at over $47.17 million. The company bought an additional 0.19 million shares recently to bring their total holdings to about 0.86% of the shares outstanding. Meridian Growth Fund sold 39396.0 shares to see its total holdings shrink to 2.1 million shares valued at over $37.12 million and representing 0.67% of the shares outstanding. ETFMG Prime Cyber Security ETF sold 12228.0 shares to bring its total holdings to over 1.93 million shares at a value of $34.15 million. ETFMG Prime Cyber Security ETF now owns shares totaling to 0.62% of the shares outstanding.

    Shares of SolarWinds Corporation (NYSE: SWI) opened at $18.72, up $0.12 from a prior closing price of $18.60. However, the script later closed the day at $18.56, down -0.22%. The company’s stock has a 5-day price change of 4.56% and 18.97% over the past three months. SWI shares are trading 0.05% year to date (YTD), with the 12-month market performance up to 4.04% higher. It has a 12-month low price of $11.50 and touched a high of $21.66 over the same period. Currently, 0.44 million shares have been traded, compared to an average intraday trading volume of 666.97K shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 2.45%, 2.19%, and 3.46% respectively.

    Institutional ownership of SolarWinds Corporation (NYSE: SWI) shares accounts for 99.80% of the company’s 308.94M shares outstanding. Mutual fund holders own 7.63%, while other institutional holders and individual stakeholders account for 86.38% and 10.77% respectively.

    It has a market capitalization of $5.72B. The stock’s trailing 12-month PE ratio is 371.20, while the earnings-per-share (ttm) stands at $0.05. The company has a PEG of 36.75 and a Quick Ratio of 0.90 with the debt-to-equity ratio at 0.73. Price movements for the stock have been influenced by the stock’s volatility, which stands at 2.54% over the week and 3.16% over the month.

    Analysts forecast that SolarWinds Corporation (SWI) will achieve an EPS of $0.2 for the current quarter, $0.22 for the next quarter and $0.97 for 2021. The lowest estimate earnings-per-share for the quarter is $0.19 while analysts give the company a high EPS estimate of $0.21. Comparatively, EPS for the current quarter was $0.2 a year ago. Earnings per share for the fiscal year are expected to increase by 117.70%, and 11.91% over the next financial year.

    If you are looking to buy this stock, then you may note that the average analyst recommendation by 14 brokerage firm advisors rate SolarWinds Corporation (SWI) as a “Moderate Buy” at a consensus score of 2.50. Specifically, 6 Wall Street analysts polled rate the stock as a buy, while 4 of the 14 advise that investors “hold,” and 2 rated it as a “Sell.”

    Looking at the support for the SWI, a number of firms have released research notes about the stock. Credit Suisse stated their Neutral rating for the stock in a research note on April 23, 2020, with the firm’s price target at $22-$18. Barclays coverage for the SolarWinds Corporation (SWI) stock in a research note released on January 10, 2020 offered a Underweight rating with a price target of $17. Evercore ISI was of a view on October 22, 2019 that the stock is In-line, while BofA/Merrill gave the stock Underperform rating on September 30, 2019, issuing a price target of. Goldman on their part issued Sell rating on July 01, 2019.


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