The Price Target For Sumo Logic Inc. (SUMO)?


Sumo Logic Inc. (NASDAQ:SUMO) finished Friday with an addition of $0.07 to close at $8.10, an upside of 0.87 percent. An average of 633,580 shares of common stock have been traded in the last five days. There was a gain of $0.20 in the past week, and it reached a new high 1 time over the past 12 months. The last 20 days have seen an average of 1,247,485 shares traded, while the 50-day average volume stands at 970,534.

SUMO stock has increased by 6.58% in the last month. The company shares reached their 1-month lowest point of $7.09 on 12/05/22. With the stock rallying to its 52-week high on 01/04/22, shares of the company touched a low of $6.43 and a high of $14.23 in 52 weeks. It has reached a new high 2 times so far this year and lost -40.27% or -$5.46 in price. In spite of this, the price is down -43.08% from the 52-week high.

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Insider Transactions

SUMO stock investors should be aware that Sumo Logic Inc. (SUMO) stock had its last reported insider trading activity 16 days ago on Dec 15. In this transaction, the insider spent $41,429. Chief Marketing Officer, Chettiar Suku Krishnaraj, disposed of 45,554 shares at a price of $8.30 on Dec 15. The insider now owns more than $378,280 worth of shares. Prior to that, Director Beedgen Christian went on to Sale 11,339 shares at $8.30 each on Dec 15. An amount of $94,159 was transacted.

Valuation Metrics

Sumo Logic Inc. (SUMO) has a trailing price-to-sales (P/S) ratio at 3.39, the price-to-book (PB) ratio at 2.54.

Financial Health

The quick ratio of Sumo Logic Inc. for the three months ended July 30 was 2.20, and the current ratio was 2.20, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.00 and a total debt to equity ratio of 0.00 for the quarter ending July 30. Its gross profit as reported stood at $163.82 million compared to revenue of $242.12 million.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Sumo Logic Inc.’s return on assets was -22.10%.

Earnings Surprise

In the quarter under review, the net income was up than the previous quarter. The company posted a net income of -$26.29 million in the quarter, while revenues of -$35.88 million were shrunk -17.31%. The analyst consensus anticipated Sumo Logic Inc.’s latest quarter earnings to come in at -$0.14 per share, but it turned out to be -$0.1, a 28.60% surprise. For the quarter, EBITDA amounted to -$18.12 million. Shareholders own equity worth $120.01 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Sumo Logic Inc. (SUMO) price momentum. RSI 9-day as of the close on 30 December was 52.39%, suggesting the stock is Neutral, with historical volatility in this time frame at 54.20%.

As of today, SUMO’s price is $7.82 +2.53% or $0.20 from its 5-day moving average. SUMO is currently trading +2.02% higher than its 20-day SMA and -2.99% lower than its 100-day SMA. However, the stock’s current price level is +12.03% above the SMA50 and -18.18% below the SMA200.

The stochastic %K and %D were 28.67% and 20.18%, respectively, and the average true range (ATR) was 0.47. With the 14-day stochastic at 39.78% and the average true range at 0.49, the RSI (14) stands at 52.14%. The stock has reached -0.03 on the 9-day MACD Oscillator while the 14-day reading was at -0.30.

Analyst Ratings

Berenberg downgraded Sumo Logic Inc. (NASDAQ: SUMO) to a a Hold rating in its most recent analyst report. Previously, the stock was rated as a Buy. The consensus rating for Sumo Logic Inc. (SUMO) among analysts is Overweight. According to current brokerage recommendations, 0 brokerage firms advise that investors sell SUMO, while 5 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 0 analysts, while 5 others rate it as a “buy”.

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

Analysts predict a range of price targets between $8.50 and $19.00, with a median target of $10.00. Taking a look at these predictions, the average price target given by analysts for Sumo Logic Inc. (SUMO) stock is $12.06.


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