Splunk (SPLK) Shares Gap Down Following Weak Earnings

Splunk Inc (NASDAQ:SPLK) shares gapped down prior to trading on Friday following a weaker than expected earnings announcement. The stock had previously closed at $131.67, but opened at $128.73. Splunk shares last traded at $119.30, with a volume of 11664300 shares traded.

The software company reported ($0.85) EPS for the quarter, missing the Zacks’ consensus estimate of ($0.77) by ($0.08). Splunk had a negative return on equity of 14.59% and a negative net margin of 15.28%. The firm had revenue of $424.90 million for the quarter, compared to analyst estimates of $395.92 million. During the same period last year, the firm earned ($0.07) EPS. The company’s revenue for the quarter was up 36.4% compared to the same quarter last year.

A number of equities research analysts recently commented on SPLK shares. Royal Bank of Canada lifted their target price on Splunk from $130.00 to $155.00 and gave the stock an “outperform” rating in a report on Monday, February 25th. Piper Jaffray Companies lifted their target price on Splunk to $160.00 and gave the stock an “overweight” rating in a report on Wednesday, February 27th. Jefferies Financial Group decreased their target price on Splunk from $157.00 to $142.30 and set a “buy” rating for the company in a report on Friday, March 1st. Deutsche Bank lifted their target price on Splunk to $160.00 and gave the stock a “buy” rating in a report on Friday, March 1st. Finally, Maxim Group boosted their price target on Splunk to $159.00 and gave the company a “buy” rating in a report on Friday, March 1st. Two analysts have rated the stock with a sell rating, five have assigned a hold rating and twenty-eight have issued a buy rating to the company. The stock has a consensus rating of “Buy” and a consensus price target of $144.13.

In other news, SVP Timothy Tully sold 6,655 shares of the business’s stock in a transaction that occurred on Friday, April 5th. The stock was sold at an average price of $128.06, for a total value of $852,239.30. Following the completion of the sale, the senior vice president now directly owns 127,727 shares in the company, valued at $16,356,719.62. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director John G. Connors sold 42,000 shares of the business’s stock in a transaction that occurred on Tuesday, March 26th. The shares were sold at an average price of $124.10, for a total value of $5,212,200.00. Following the completion of the sale, the director now owns 70,720 shares of the company’s stock, valued at $8,776,352. The disclosure for this sale can be found here. Insiders sold 124,271 shares of company stock valued at $15,613,440 over the last 90 days. Company insiders own 0.36% of the company’s stock.

Several institutional investors have recently bought and sold shares of the company. Clearbridge Investments LLC increased its position in shares of Splunk by 2.3% in the first quarter. Clearbridge Investments LLC now owns 4,766,131 shares of the software company’s stock valued at $593,860,000 after buying an additional 104,910 shares in the last quarter. Ocean Capital Management LLC increased its position in shares of Splunk by 2.8% in the first quarter. Ocean Capital Management LLC now owns 16,501 shares of the software company’s stock valued at $2,056,000 after buying an additional 456 shares in the last quarter. Cerebellum GP LLC purchased a new stake in shares of Splunk in the first quarter valued at approximately $310,000. Nordea Investment Management AB increased its position in shares of Splunk by 54.6% during the first quarter. Nordea Investment Management AB now owns 286,102 shares of the software company’s stock worth $35,648,000 after purchasing an additional 101,083 shares in the last quarter. Finally, DeepCurrents Investment Group LLC increased its position in shares of Splunk by 146.1% during the first quarter. DeepCurrents Investment Group LLC now owns 43,189 shares of the software company’s stock worth $5,381,000 after purchasing an additional 25,639 shares in the last quarter.

The company has a quick ratio of 3.23, a current ratio of 3.23 and a debt-to-equity ratio of 1.07. The stock has a market capitalization of $17.91 billion, a P/E ratio of -75.03 and a beta of 2.03.

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Splunk Company Profile (NASDAQ:SPLK)

Splunk, Inc engages in the development and marketing of software solutions. Its products include Splunk cloud, Splunk light, and Splunk enterprise. It also offers solutions for information technology operations, security, internet-of-things, application analytics, business analytics, and industries. The company was founded by Erik M.

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