What The Financials Tell Us About Pure Storage Inc. (PSTG)

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Pure Storage Inc. (NYSE:PSTG) finished Thursday with an addition of $0.76 to close at $27.04, an upside of 2.89 percent. An average of 2,921,540 shares of common stock have been traded in the last five days. There was a fall of -$0.68 in the past week, and it reached a new high 8 times over the past 12 months. The last 20 days have seen an average of 4,081,090 shares traded, while the 50-day average volume stands at 3,845,826.

PSTG stock has decreased by -8.21% in the last month. The company shares reached their 1-month lowest point of $26.13 on 12/28/22. With the stock rallying to its 52-week high on 03/28/22, shares of the company touched a low of $21.90 and a high of $36.71 in 52 weeks. It has reached a new high 9 times so far this year and lost -16.93% or -$5.51 in price. In spite of this, the price is down -26.34% from the 52-week high.

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Insider Transactions

PSTG stock investors should be aware that Pure Storage Inc. (PSTG) stock had its last reported insider trading activity 3 days ago on Dec 27. In this transaction, the insider spent $283,625. Director, Brown Andrew William Fraser, disposed of 9,930 shares at a price of $27.28 on Dec 21. The insider now owns more than $270,891 worth of shares. Prior to that, Chief Revenue Officer FitzSimons Dan went on to Sale 10,918 shares at $27.62 each on Dec 21. An amount of $301,572 was transacted.

Valuation Metrics

Pure Storage Inc. (PSTG) has a trailing price-to-earnings (P/E) ratio of 600.89. The stock’s beta is 1.28. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 3.12, the price-to-book (PB) ratio at 9.69.

Financial Health

The quick ratio of Pure Storage Inc. for the three months ended October 30 was 1.30, and the current ratio was 1.40, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.01 and a total debt to equity ratio of 0.70 for the quarter ending October 30. Its gross profit as reported stood at $1.47 billion compared to revenue of $2.18 billion.

Earnings Surprise

In the quarter under review, the net income was up than the previous quarter. The company posted a net income of $10.92 million in the quarter, while revenues of -$11.54 million were grew 514.56%. The analyst consensus anticipated Pure Storage Inc.’s latest quarter earnings to come in at $0.25 per share, but it turned out to be $0.31, a 24.00% surprise. For the quarter, EBITDA amounted to $35.66 million. Shareholders own equity worth $302.59 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Pure Storage Inc. (PSTG) price momentum. RSI 9-day as of the close on 29 December was 37.59%, suggesting the stock is Neutral, with historical volatility in this time frame at 28.70%.

As of today, PSTG’s price is $26.67 -2.45% or -$0.68 from its 5-day moving average. PSTG is currently trading -7.37% lower than its 20-day SMA and -9.44% lower than its 100-day SMA. However, the stock’s current price level is -2.80% below the SMA50 and -12.86% below the SMA200.

The stochastic %K and %D were 8.38% and 7.13%, respectively, and the average true range (ATR) was 0.87. With the 14-day stochastic at 17.84% and the average true range at 0.93, the RSI (14) stands at 38.50%. The stock has reached -0.64 on the 9-day MACD Oscillator while the 14-day reading was at -1.55.

Analyst Ratings

Morgan Stanley upgraded Pure Storage Inc. (NYSE: PSTG) to a an Overweight rating in its most recent analyst report. Previously, the stock was rated as an Equal-weight. The consensus rating for Pure Storage Inc. (PSTG) among analysts is Buy. According to current brokerage recommendations, 0 brokerage firms advise that investors sell PSTG, while 4 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 2 analysts, while 16 others rate it as a “buy”.

What is PSTG’s price target for the next 12 months?

Analysts predict a range of price targets between $32.30 and $47.00, with a median target of $39.50. Taking a look at these predictions, the average price target given by analysts for Pure Storage Inc. (PSTG) stock is $38.82.


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