Can Pure Storage Inc. (PSTG) Add Value To Your Portfolio?

As of Friday close, Pure Storage Inc.’s (NYSE:PSTG) stock was up $1.38, moving up 5.47 percent to $26.59. The average number of shares traded per day over the past five days has been 3,953,740 shares. 1 time new highs have been achieved over the past 5 days, with a -$0.79 fall in that time frame. In the last twenty days, the average volume was 3,195,550, while in the previous 50 days, it was 3,738,606.

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Since last month, PSTG stock retreated -15.18%. Shares of the company fell to $24.25 on 05/12/22, the lowest level in the past month. A 52-week high of $36.71 was reached on 03/28/22 after having rallying from a 52-week low of $16.83. Since the beginning of this year, PSTG’s stock price has dropped by -18.31% or -$5.96, and marked a new high 9 times. However, the stock has declined by -27.57% since its 52-week high.

Pure Storage Inc. (PSTG) last reported insider trading activity 52 days ago on Mar 23. Singh Ajay, the Chief Product Officer of the company, disposed of 36,338 shares for $34.39 on Mar 23. It resulted in a $1,249,591 divestment by the insider. Brown Andrew William Fraser sold 11,564 shares at an average price of $35.20 on Mar 21. The insider now owns 58,988 shares following the transaction. On Dec 09, Chief Financial Officer Krysler P. Kevan sold 26,444 shares at $32.80 apiece. The transaction was valued at $867,268.

Valuation Metrics

The stock’s beta is 1.50. Besides these, the trailing price-to-sales (P/S) ratio of 3.69, the price-to-book (PB) ratio of 10.27, and the price-to-cash flow ratio of 26.16 may also be considered.

Financial Health

In the three months ended October 30, Pure Storage Inc.’s quick ratio stood at 2.30, while its current ratio was 2.30, showing that the company is able to pay off its debt. According to company report, the long-term debt-to-equity ratio for the quarter ending October 30 was 1.04, and the total debt-to-equity ratio was 1.04. On the profitability front, the trailing twelve-month gross margin is 67.50% percent. In the year ended October 30, operating margins totaled -4.50%. Based on annual data, PSTG earned $1.47 billion in gross profit and brought in $2.18 billion in revenue.

A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was -7.30%. Return on equity (ROE) for the past 12 months was -19.80%.

In Pure Storage Inc.’s quarter-end financial report for October 30, it reported total debt of $786.78 million. According to the earnings report, the company had a higher net income in the recent quarter than it did in the previous quarter. PSTG’s revenue fell -48.68% to $562.74 million during the quarter, while net income inched up to $211.9 million. While analysts expected Pure Storage Inc. to report $0.12 quarterly earnings, the actual figure was $0.22 per share, beating the consensus estimate by 83.30%. During the quarter, the company generated $61.88 million in EBITDA. The liabilities of Pure Storage Inc. were 2.38 billion at the end of its most recent quarter ended October 30, and its total debt was $912.46 million. The value of shareholders’ equity is $298.5 million.

Technical Picture

This quick technical analysis looks at Pure Storage Inc.’s (PSTG) price momentum. With a historical volatility rate of 67.36%, the RSI 9-day stood at 40.21% on 13 May.

With respect to its five-day moving average, the current Pure Storage Inc. price is down by -2.89% percent or -$0.79. At present, PSTG shares trade -13.47% below its 20-day simple moving average and -16.07% percent below its 100-day simple moving average. However, the stock is currently trading approximately -11.04% below its SMA50 and +34.91% above its SMA200.

Stochastic coefficient K was 16.89% and Stochastic coefficient D was 10.26%, while ATR was 1.48. Given the Stochastic reading of 35.56% for the 14-day period, the RSI (14) reading has been calculated as 39.25%. As of today, the MACD Oscillator reading stands at -1.44, while the 14-day reading stands at -2.50.

Analyst Ratings

UBS launched its rating on Pure Storage Inc. (NYSE: PSTG) to a Neutral in a note to investors on April 05, 2022. Pure Storage Inc. (PSTG) has been rated Buy by analysts. According to 0 brokerage firms, PSTG is a sell, and 3 firms recommend it is a Hold. There are 0 analysts who say the stock is underweight. A total of 2 analysts rate Pure Storage Inc. stock as buy, with 15 recommending it as overweight.

With a median target price of $39.00, the current consensus forecast for the stock is $34.00 – $48.00. Based on these forecasts, analysts predict Pure Storage Inc. (PSTG) will achieve an average price target of $38.44.


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