Splunk Inc. [SPLK] is 23.48% higher this YTD. Is it still time to buy?

 Splunk Inc. [SPLK] is 23.48% higher this YTD. Is it still time to buy?

Splunk Inc. [NASDAQ: SPLK] price surged by 4.05 percent to reach at $7.2.

A sum of 1823847 shares traded at recent session while its average daily volume was at 1.73M shares. Splunk Inc. shares reached a high of $185.36 and dropped to a low of $177.82 until finishing in the latest session at $184.93.

The one-year SPLK stock forecast points to a potential upside of 19.53. The average equity rating for SPLK stock is currently 2.10, trading closer to a bullish pattern in the stock market.

Guru’s Opinion on Splunk Inc. [SPLK]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for SPLK shares is $229.82 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on SPLK stock is a recommendation set at 2.10. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Citigroup have made an estimate for Splunk Inc. shares, keeping their opinion on the stock as Neutral, with their previous recommendation back on August 27, 2020. While these analysts kept the previous recommendation, JMP Securities raised their target price from $200 to $240. The new note on the price target was released on August 27, 2020, representing the official price target for Splunk Inc. stock. Previously, the target price had yet another raise from $250 to $300, while Wells Fargo kept a Overweight rating on SPLK stock. On August 27, 2020, analysts increased their price target for SPLK shares from 228 to 242.

The Average True Range (ATR) for Splunk Inc. is set at 8.00, with the Price to Sales ratio for SPLK stock in the period of the last 12 months amounting to 12.86. The Price to Book ratio for the last quarter was 17.61, with the Price to Cash per share for the same quarter was set at 12.62.

SPLK Stock Performance Analysis:

Splunk Inc. [SPLK] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -0.23. With this latest performance, SPLK shares dropped by -8.61% in over the last four-week period, additionally plugging by 52.71% over the last 6 months – not to mention a rise of 50.67% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for SPLK stock in for the last two-week period is set at 42.25, with the RSI for the last a single of trading hit 42.51, and the three-weeks RSI is set at 43.50 for Splunk Inc. [SPLK]. The present Moving Average for the last 50 days of trading for this stock 200.70, while it was recorded at 179.56 for the last single week of trading, and 166.31 for the last 200 days.

Insight into Splunk Inc. Fundamentals:

Operating Margin for any stock indicates how profitable investing would be, and Splunk Inc. [SPLK] shares currently have an operating margin of -11.17 and a Gross Margin at +81.62. Splunk Inc.’s Net Margin is presently recorded at -14.27.

Return on Total Capital for SPLK is now -7.42, given the latest momentum, and Return on Invested Capital for the company is -9.48. Return on Equity for this stock declined to -19.13, with Return on Assets sitting at -6.77. When it comes to the capital structure of this company, Splunk Inc. [SPLK] has a Total Debt to Total Equity ratio set at 97.54. Additionally, SPLK Total Debt to Total Capital is recorded at 49.38, with Total Debt to Total Assets ending up at 35.85. Long-Term Debt to Equity for the company is recorded at 97.54, with the Long-Term Debt to Total Capital now at 49.38.

Reflecting on the efficiency of the workforce at the company, Splunk Inc. [SPLK] managed to generate an average of -$58,046 per employee. Receivables Turnover for the company is 3.61 with a Total Asset Turnover recorded at a value of 0.47.Splunk Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 2.50 and a Current Ratio set at 2.50.


With the latest financial reports released by the company, Splunk Inc. posted 0.58/share EPS, while the average EPS was predicted by analysts to be reported at 0.54/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 7.40%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for SPLK. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Splunk Inc. go to 5.97%.

Splunk Inc. [SPLK] Insider Position Details

There are presently around $27,865 million, or 94.80% of SPLK stock, in the hands of institutional investors. The top three institutional holders of SPLK stocks are: PRICE T ROWE ASSOCIATES INC /MD/ with ownership of 24,417,596, which is approximately -0.036% of the company’s market cap and around 0.60% of the total institutional ownership; VANGUARD GROUP INC, holding 14,770,516 shares of the stock with an approximate value of $2.73 billion in SPLK stocks shares; and BLACKROCK INC., currently with $1.95 billion in SPLK stock with ownership of nearly 7.048% of the company’s market capitalization.

Positions in Splunk Inc. stocks held by institutional investors increased at the end of August and at the time of the August reporting period, where 399 institutional holders increased their position in Splunk Inc. [NASDAQ:SPLK] by around 10,958,107 shares. Additionally, 297 investors decreased positions by around 9,734,680 shares, while 78 investors held positions by with 129,987,699 shares. The mentioned changes placed institutional holdings at 150,680,486 shares, according to the latest SEC report filing. SPLK stock had 155 new institutional investments in for a total of 2,763,047 shares, while 73 institutional investors sold positions of 1,400,043 shares during the same period.

An article written by Caleb Clifford on dbtnews.com

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