The stock of Pure Storage Inc. (NYSE:PSTG) increased by $0.31 on Tuesday to finish at $36.32, up 0.86 percent. The last five days have seen an average of 3,149,760 shares of common stock traded. 23 times new highs were reached in the current year, with a gain of $9.56. The average number of shares traded over the last 20 days was 2,884,130, while the average volume over the last 50 days totaled 3,226,350.
PSTG stock dropped -1.81% since last month. On 08/25/23, the company’s shares reached a one-month low of $35.26. The stock touched a high of $39.19 on 07/19/23, after rallying from a low of $22.14 in 52 weeks. The price of PSTG stock has risen by 35.72% or $9.56 this year, reaching a new high 23 times. Still, the stock price is down -7.32% 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 44 days ago on Jul 17. On Jul 17, Chief Accounting Officer Chu Mona sold 5,387 shares at $38.49 each. This transaction resulted in the insider making $207,346. On Jul 11, Yen Mallun sold 12,495 shares at a price of US$37.95. After the transaction, the insider now owns 40,316 shares. Director Brown Andrew William Fraser had earlier sold 9,097 shares on Jun 26 for $35.83 a share. The transaction was completed for $325,957.
Valuation Metrics
Beta for the stock is 1.26. There are also a few other valuation ratios worth considering, including the trailing price-to-sales (P/S) ratio of 4.09, the price-to-book (PB) ratio of 12.27, and the price-to-cash flow ratio of 20.51.
Financial Health
For the three months ended April 29, Pure Storage Inc.’s quick ratio was 1.60, while its current ratio was 1.70, indicating its ability to pay off its debt. The company’s long-term debt to equity ratio for the quarter ending April 29 is 0.12, and the total debt to equity ratio is 0.12. As far as profitability goes, gross margin for the trailing twelve months is 69.20% percent. Pure Storage Inc.’s EBITDA margin for the year ended April 29 was 6.68%, whereas its operating margin stood at 0.60% for the same period. Based on annual data, it had gross profit of $1.9 billion and revenue of $2.75 billion.
Investors will also look at the performance of the company’s management in order to determine the potential profitability of their investment. PSTG’s return on assets (ROA) during the last 12 months has been 0.50%. There was a 4.20% return on investment (ROI) in the past year. In the meantime, the return on equity (ROE) for the last 12 months was 2.00%.
Earnings Surprise
According to Pure Storage Inc.’s quarterly financial report for the quarter that ended April 29. A lower net income was reported in the quarter under review than the previous quarter. Net income for the quarter came in at $588.35 million, while revenues fell by -5.28% to $239.19 million. It was predicted that Pure Storage Inc.’s quarterly earnings would be $0.08, but it ended up being $0.04. EBITDA was -$42.12 million for the quarter. At the end of Pure Storage Inc.’s most recent quarter ended April 29, its liabilities totaled 2.05 billion, while its total debt was $287.61 million. Equity owned by shareholders amounts to $307.53 million.
Technical Picture
Here’s a quick look at Pure Storage Inc.’s (PSTG) price momentum from a technical perspective. As of 29 August, the RSI 9-day stood at 45.12%, suggesting the stock is Neutral, with a 35.87% historical volatility rate.
The stochastic %K and %D were 23.94% and 24.12% respectively, while the average true range (ATR) was 1.07. Based on the 14-day stochastic reading of 32.82%, the RSI (14) reading is 46.66%. On the 9-day MACD Oscillator, the stock is at -0.62, and the 14-day reading is at -0.58.
Analyst Ratings
In its most recent analyst report, Wedbush raised its rating on Pure Storage Inc. (NYSE: PSTG) to an Outperform. Prior to this, analysts firm rated the stock as a Neutral. Analysts have assigned Pure Storage Inc. (PSTG) an Buy rating. PSTG is a stock that is recommended for selling by 0 brokerage firms, while 3 companies recommend holding. The stock is underweighted by 0 analysts. Among the analysts who rate the stock, 2 rates it overweight and 16 others recommend it as a buy.
What is PSTG’s price target for the next 12 months?
The current consensus forecast for the stock is between $31.00 and $47.00, with a median target price of $42.00. In analyzing these forecasts, the average price target given by analysts for Pure Storage Inc. (PSTG) is $41.82.
