Splunk Inc. (NASDAQ:SPLK) finished Wednesday with an addition of $1.77 to close at $99.93, an upside of 1.80 percent. An average of 1,567,100 shares of common stock have been traded in the last five days. There was a gain of $2.91 in the past week, and it reached a new high 2 times over the past 12 months. The last 20 days have seen an average of 1,287,290 shares traded, while the 50-day average volume stands at 1,361,142.
SPLK stock has decreased by -4.19% in the last month. The company shares reached their 1-month lowest point of $95.24 on 08/18/23. With the stock rallying to its 52-week high on 06/15/23, shares of the company touched a low of $65.00 and a high of $112.03 in 52 weeks. It has reached a new high 12 times so far this year and achieved 16.08% or $13.84 in price. In spite of this, the price is down -10.80% from the 52-week high.
Insider Transactions
SPLK stock investors should be aware that Splunk Inc. (SPLK) stock had its last reported insider trading activity 45 days ago on Jul 10. In this transaction, the insider spent $520,545. President and CEO, Steele Gary, disposed of 9,600 shares at a price of $104.47 on Jul 07. The insider now owns more than $1,002,868 worth of shares. Prior to that, SVP, Chief Revenue Officer Smith Christian went on to Sale 1,500 shares at $105.64 each on Jul 03. An amount of $158,460 was transacted.
Valuation Metrics
Splunk Inc. (SPLK) stock’s beta is 1.26. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 4.42, and the price-to-cash flow ratio at 21.25.
Financial Health
The quick ratio of Splunk Inc. for the three months ended April 29 was 1.30, and the current ratio was 1.30, indicating that the company is able to meet its debt obligations. Splunk Inc.’s EBITDA margin for the year ending April 29 is -4.59%, while its operating margin for the same period stands at -4.00%. Its gross profit as reported stood at $2.84 billion compared to revenue of $3.65 billion.
For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Splunk Inc.’s return on assets was -3.00%.
Earnings Surprise
In the quarter under review, the net income was down than the previous quarter. The company posted a net income of -$196.42 million in the quarter, while revenues of -$792.44 million were shrunk -54.93%. The analyst consensus anticipated Splunk Inc.’s latest quarter earnings to come in at -$0.13 per share, but it turned out to be $0.18, a 238.50% surprise. For the quarter, EBITDA amounted to -$147.32 million. Shareholders own equity worth $165.6 million.
Technical Picture
From a technical analysis perspective, let’s take a brief look at Splunk Inc. (SPLK) price momentum. RSI 9-day as of the close on 23 August was 49.84%, suggesting the stock is Neutral, with historical volatility in this time frame at 13.23%.
As of today, SPLK’s price is $98.27 +3.00% or $2.91 from its 5-day moving average. SPLK is currently trading -5.16% lower than its 20-day SMA and +8.31% higher than its 100-day SMA. However, the stock’s current price level is -1.72% below the SMA50 and +33.94% above the SMA200.
The stochastic %K and %D were 35.35% and 27.34%, respectively, and the average true range (ATR) was 2.43. With the 14-day stochastic at 45.53% and the average true range at 2.65, the RSI (14) stands at 46.64%. The stock has reached 0.74 on the 9-day MACD Oscillator while the 14-day reading was at -0.17.
Analyst Ratings
CapitalOne launched coverage on Splunk Inc. (NASDAQ: SPLK) in its analyst report released on August 09, 2023. The firm assigned the stock an Overweight rating. The consensus rating for Splunk Inc. (SPLK) among analysts is Overweight. According to current brokerage recommendations, 0 brokerage firms advise that investors sell SPLK, while 15 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 7 analysts, while 20 others rate it as a “buy”.
What is SPLK’s price target for the next 12 months?
Analysts predict a range of price targets between $86.00 and $135.00, with a median target of $123.00. Taking a look at these predictions, the average price target given by analysts for Splunk Inc. (SPLK) stock is $120.09.
