4 Analysts Assess SolarWinds: What You Need To Know

In the latest quarter, 4 analysts provided ratings for SolarWinds SWI, showcasing a mix of bullish and bearish perspectives.

Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.

Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $17.38, a high estimate of $20.00, and a low estimate of $15.00. This upward trend is apparent, with the current average reflecting a 27.14% increase from the previous average price target of $13.67.

Understanding Analyst Ratings: A Comprehensive Breakdown

An in-depth analysis of recent analyst actions unveils how financial experts perceive SolarWinds. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to SolarWinds. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Unveiling insights, analysts deliver qualitative insights into stock performance, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of SolarWinds compared to the broader market.
• Price Targets: Analysts set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.

Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of SolarWinds's market standing. Stay informed and make data-driven decisions with our Ratings Table.

Stay up to date on SolarWinds analyst ratings.

Unveiling the Story Behind SolarWinds

SolarWinds Corp is a provider of information technology (IT), and management software. Company offers full-stack observability solutions. The company's business is focused on building products that enable technology professionals and leaders to securely monitor and manage the performance of their IT environments, whether on-premises, in the cloud or in hybrid deployments. The products offered are designed to monitor and manage networks, systems, databases and applications across on-premises, multi-cloud and hybrid IT environments without the need for customization or professional services.

Unraveling the Financial Story of SolarWinds

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Growth: SolarWinds displayed positive results in 3 months. As of 30 September, 2024, the company achieved a solid revenue growth rate of approximately 5.5%. This indicates a notable increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Information Technology sector.

Net Margin: SolarWinds's net margin is impressive, surpassing industry averages. With a net margin of 6.28%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): SolarWinds's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of 0.94%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): SolarWinds's ROA stands out, surpassing industry averages. With an impressive ROA of 0.41%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: SolarWinds's debt-to-equity ratio is below the industry average at 0.92, reflecting a lower dependency on debt financing and a more conservative financial approach.

The Significance of Analyst Ratings Explained

Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.