The stock of Splunk Inc. (NASDAQ:SPLK) increased by $2.49 on Tuesday to at $119.64, up 2.13 percent. The last five days have seen an average of 3,791,181 shares of common stock traded. 16 times new highs were reached in the current year, with a gain of $33.45. The average number of shares traded over the last 20 days was 1,830,350, while the average volume over the last 50 days totaled 1,488,348.
SPLK stock appreciated 10.44% since last month. On 08/18/23, the company’s shares reached a one-month low of $95.24. The stock touched a high of $117.71 on 08/29/23, after rallying from a low of $65.00 in 52 weeks. The price of SPLK stock has risen by 38.97% or $33.45 this year, reaching a new high 16 times. Still, the stock price is up 1.64% from the 52-week high.
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Insider Transactions
SPLK stock investors should be aware that Splunk Inc. (SPLK) stock had its last reported insider trading activity 5 days ago on Aug 24. On Aug 24, Director Steele Elisa sold 3,050 shares at $112.00 each. This transaction resulted in the insider making $341,600. On Jul 10, Morgan Scott sold 4,996 shares at a price of US$104.19. After the transaction, the insider now owns 122,889 shares. President and CEO Steele Gary had earlier sold 9,600 shares on Jul 07 for $104.47 a share. The transaction was completed for $1,002,868.
Valuation Metrics
Beta for the stock is 1.21. There are also a few other valuation ratios worth considering, including the trailing price-to-sales (P/S) ratio of 5.02, and the price-to-cash flow ratio of 23.96.
Financial Health
For the three months ended July 30, Splunk Inc.’s quick ratio was 1.40, while its current ratio was 1.40, indicating its ability to pay off its debt. As far as profitability goes, gross margin for the trailing twelve months is 78.50% percent. Splunk Inc.’s EBITDA margin for the year ended July 30 was -4.59%, whereas its operating margin stood at -0.70% for the same period. Based on annual data, it had gross profit of $2.84 billion and revenue of $3.65 billion.
Investors will also look at the performance of the company’s management in order to determine the potential profitability of their investment. SPLK’s return on assets (ROA) during the last 12 months has been -0.40%. There was a -6.60% return on investment (ROI) in the past year. In the meantime, the return on equity (ROE) for the last 12 months was 10.70%.
Earnings Surprise
According to Splunk Inc.’s quarterly financial report for the quarter that ended July 30. A higher net income was reported in the quarter under review than the previous quarter. Net income for the quarter came in at $909.68 million, while revenues rose by 12.19% to $751.51 million. It was predicted that Splunk Inc.’s quarterly earnings would be $0.71, but it ended up being $0.45, beating the consensus by 57.80%. EBITDA was -$10.23 million for the quarter. At the end of Splunk Inc.’s most recent quarter ended July 30, its liabilities totaled 6.12 billion, while its total debt was $4.07 billion. Equity owned by shareholders amounts to $167.7 million.
Technical Picture
Here’s a quick look at Splunk Inc.’s (SPLK) price momentum from a technical perspective. As of 28 August, the RSI 9-day stood at 86.24%, suggesting the stock is Overbought, with a 53.83% historical volatility rate.
The stochastic %K and %D were 98.32% and 90.82% respectively, while the average true range (ATR) was 3.70. Based on the 14-day stochastic reading of 98.62%, the RSI (14) reading is 77.64%. On the 9-day MACD Oscillator, the stock is at 11.23, and the 14-day reading is at 14.14.
Analyst Ratings
In its analyst report released on August 09, 2023, CapitalOne began covering Splunk Inc. (NASDAQ: SPLK). The stock was rated as an Overweight by the brokerage firm. Analysts have assigned Splunk Inc. (SPLK) an Overweight rating. SPLK is a stock that is recommended for selling by 0 brokerage firms, while 15 companies recommend holding. The stock is underweighted by 0 analysts. Among the analysts who rate the stock, 7 rates it overweight and 20 others recommend it as a buy.
What is SPLK’s price target for the next 12 months?
The current consensus forecast for the stock is between $105.00 and $150.00, with a median target price of $130.00. In analyzing these forecasts, the average price target given by analysts for Splunk Inc. (SPLK) is $127.21.
