Splunk stock: buy or sell?

SPLK stock price: $121.60 -0.23% At close on September 20th, 2019

Updated on:
September 20th, 2019

3

Splunk shares remained stable -0.23% to $121.60 today.

Splunk Inc. provides software solutions that enable organizations to gain real-time operational intelligence in the United States and internationally.

Should I buy Splunk stock?

Make a decision about when to buy or sell stocks is one of the hardest parts of being a trader or investor. Having a trading plan helps to make decisions easier, quicker and with less hesitations. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.

None of our preferred buy setups matches with Splunk stock situation right now, hence this is not a suitable entry point.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This doesn't mean SPLK will fall in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems.

Is Splunk stock a buy?

Everyday, hundreds of stock ratings are posted by financial analysts to indicate a particular stock's attractiveness. At Stocks2.com, we collected 15 ratings published for SPLK stock in the last month.

The general sentiment of these ratings is bullish for SPLK stock, with 11 positive ratings.
Is SPLK a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-9-19Bank of American/aBuy
2019-9-17JPMorgan Chase & Co.NeutralOverweight
2019-9-13Barclaysn/aOverweight
2019-8-23Citigroupn/aSell
2019-8-22UBS Groupn/aBuy
2019-8-22Robert W. BairdOutperformNeutral
2019-8-22Needham & Company LLCn/aBuy
2019-8-22Credit Suisse Groupn/aOutperform
2019-8-22BMO Capital Marketsn/aOutperform
2019-8-20WedbushPositiveOutperform
2019-6-7Goldman Sachs Groupn/aNeutral
2019-6-24Piper Jaffray Companiesn/aOverweight
2019-3-8Argusn/aBuy
2019-3-19Morgan StanleyEqual WeightHold
2019-3-13Mizuhon/aBuy

Splunk stock analysis

Daily outlook

Splunk shares remained constant -0.23% to $121.60 today.

Splunk shares remained stable -0.23% to $121.60 today. Since August 22nd when SPLK stock price broke down the SMA200d line, it slid $-6.86 per share (-5.34%).

SPLK stock chart (daily)

Weekly outlook

Splunk climbed an exceptional 7.00% this week. Late August SPLK plummed a spooky -6.03% in just one week.

Since mid August, when SPLK stock price broke down the 40-weeks moving avarage line, it slid $-3.19 per share (-2.56%). Trading stocks that are under the 40-weeks (that is, 200-days) moving average line is not recommended by many experts, as it indicates that the stock has not enough institutional support. Far behind is the all-time high Splunk hit late February and since then the price is -15.38% below that top.

SPLK stock chart (weekly)

Splunk stock price history

Splunk IPO was on April 19th, 2012 at $32.00 per share1. Since then, SPLK stock surged a 280.00%, with a yearly average of 40.00%. If you had invested $1,000 in Splunk stock in 2012, it would worth $2,800.00 today.

1: Adjusted price after possible price splits or reverse-splits.

Splunk stock historical price chart

SPLK stock reached all-time highs on March with a price of $143.70.

Splunk stock price target is $144.00

Nobody can reliably foresee how stock prices may evolve in the future. However, many stock price predictions are published every day by banks, financial institutions and independent analysts. You should not follow the analysts' SPLK stock price predictions in the hope that they will be met as they may be wrong and not met. We have 14 price predictions for Splunk stock released in the last month:
SPLK stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-9-19Bank of AmericaReiteratesn/a$167.00-
2019-9-17JPMorgan Chase & Co.Upgradesn/a$130.00-
2019-9-13BarclaysLowers Target$158.00$142.00-10.1%
2019-8-23CitigroupLowers Target$106.00$102.00-3.8%
2019-8-22UBS GroupLowers Target$165.00$150.00-9.1%
2019-8-22Robert W. BairdDowngradesn/a$127.00-
2019-8-22Needham & Company LLCLowers Target$165.00$160.00-3%
2019-8-22Credit Suisse GroupReiterates$160.00$150.00-6.3%
2019-8-22BMO Capital MarketsReiteratesn/a$155.00-
2019-8-20WedbushReiterates$163.00$158.00-3.1%
2019-6-7Goldman Sachs GroupInitiatesn/a$119.00-
2019-6-24Piper Jaffray CompaniesReiteratesn/a$160.00-
2019-3-8ArgusRaises Target$1.68$156.009185.7%
2019-3-19Morgan StanleySet Price Target$121.00$140.0015.7%
(in average)$130.00$144.0011.0%
The price prediction for Splunk stock is $144.00, moving in a range between $167.00 and $102.00. In average, analysts' outlook on SPLK price target is positive, increasing the target by a 11.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

On February, Splunk missed the estimates of the experts and posted a fatal EPS of $0.17 per share when experts were expecting $0.20.
SPLK earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q2-n/a-0.73n/a
2017-Q3-n/a-0.6n/a
2017-Q42017-11-160.140.1721.4%
2018-Q12018-03-01-0.18-0.11n/a
2018-Q22018-05-24-0.59-0.77n/a
2018-Q32018-08-23-0.54-0.52n/a
2018-Q42018-11-29-0.23-0.22n/a
2019-Q12019-02-280.20.17-15.0%
2019-Q2-n/an/an/a
2019-Q3-n/an/an/a

Annual financial results

In 2019, Splunk annual turnover climbed an exceptional 41.88% to $1,803.01 million USD from $1,270.79 marked in 2018. When comparing 2019 vs 2018, improving that, profit margin (that is, the net income divided by revenues) jumped a 5.10% to -15.28%.

SPLK annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2014$303 M-$-79.01 M-26.1%-
2014$451 M48.99%$-217.12 M-48.2%174.80%
2015$451 M0.00%$-217.12 M-48.2%0.00%
2015$668 M48.25%$-278.77 M-41.7%28.40%
2016$668 M0.00%$-278.77 M-41.7%0.00%
2016$950 M42.12%$-355.19 M-37.4%27.41%
2017$950 M0.00%$-355.19 M-37.4%0.00%
2017$1,270 M33.69%$-259.10 M-20.4%-27.05%
2018$1,271 M0.06%$-259.10 M-20.4%0.00%
2019$1,803 M41.88%$-275.58 M-15.3%6.36%

Quarterly financial results

Splunk posted $622.09 M in revenues for 2019-Q1, a 29.34% up compared to previous quarter. Reported quarter earnings marked $2.13 M with a profit margin of 0.34%. Profit margin rocketed a 11.92% compared to previous quarter when profit margin was -11.58%. When comparing sales to same quarter last year, Splunk sales marked an extraordinary gain and boosted a 47.66%. Looking back to recent quarterly results, Splunk posted 3 positive quarters in a row.
SPLK quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q2$242 M-$-99.93 M-41.2%-
2017-Q3$280 M15.47%$-83.50 M-29.8%-16.44%
2017-Q4$329 M17.39%$-50.60 M-15.4%-39.40%
2018-Q1$421 M28.19%$-35.72 M-8.5%-29.41%
2018-Q2$312 M-26.03%$-118.50 M-38.0%231.76%
2018-Q3$388 M24.60%$-103.50 M-26.7%-12.66%
2018-Q4$481 M23.87%$-55.71 M-11.6%-46.18%
2019-Q1$622 M29.34%$2.13 M0.3%-103.82%

Splunk ownership

When you are planning to invest in shares of a company, it's worth to overview its ownership structure.

Splunk shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 0.42% of all shares.

Bearish positions for SPLK stock account 0.00%, no big difference from last month.

For a better context understanding, the next table shows ownership data compared to other related companies:

SPLKIBMMSTRTDCVRNS
Market cap$18.3 B$126.7 B$1.2 B$3.6 B$1.9 B
Total shares150.2 M885.9 M8.2 M114.1 M30.3 M
Float shares150.4 M884.5 M8.2 M112.6 M29.8 M
  - Institutional holdings (%)95.0%57.5%96.6%26.7%87.6%
  - Insider holdings (%)0.4%0.1%0.1%0.0%3.7%
Shares in short selling0.0%0.0%0.0%0.0%0.0%

Splunk summary

Friday, September 20th, 2019
Open$121.97
Close$121.60
Day range$118.69 - $121.98
Previous close$121.88
Session gain-0.23%
Average true range$3.85
50d mov avg$124.63
100d mov avg$125.06
200d mov avg$123.75
Daily patternlt03a
Weekly pattern

Splunk performance

Stocks performance is always measured in comparision to the market or competitors and related stocks in the same industry. We compared Splunk against International Business Machines, MicroStrategy, Teradata and Varonis Systems in the following table:
Stock3m6m12m
SPLKSplunk-2.20%-3.25%4.47%
IBMInternational Bus...3.92%4.96%-0.91%
MSTRMicroStrategy2.54%4.60%1.57%
TDCTeradata-7.87%-27.50%-17.82%
VRNSVaronis Systems2.22%4.04%-12.22%

Splunk competitors

One check before trading any stock is to review a list of its competitors, in this case for Splunk. We chose 4 companies as Splunk competitors as they are in the same industry or have similar market objectives.

Latest Splunk stock news