Splunk stock: buy or sell?
July 16th, 2019
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?You can't be a successful trader if you don't follow a methodolgy or system that assist you in choosing companies and the correct market timing. That's why is so important to choose your own trading plan that fits your character as inversor. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.
Currently, Splunk stock doesn't match any of these trading strategies, so our recommendation is not to buy.
|New all-time high||No|
|New 52 week high||No|
|Price crossing up 200d MA||No|
|100d MA crossing up 200d MA||No|
Is Splunk stock a buy?
Financial institutions and banks publish stock ratings everyday.At Stocks2.com, we detected 15 ratings published for SPLK stock in the last 30 days. The general sentiment of these ratings is bullish for SPLK stock, with 13 positive ratings.
|Date||Analyst / Broker||Previous rating||Current rating|
|2019-6-7||Goldman Sachs Group||n/a||Neutral|
|2019-6-24||Piper Jaffray Companies||n/a||Overweight|
|2019-3-19||Morgan Stanley||Equal Weight||Hold|
|2019-3-1||Wells Fargo & Co||Outperform||Outperform|
|2019-3-1||Needham & Company LLC||Buy||Buy|
|2019-3-1||Needham & Company LLC||n/a||Buy|
|2019-3-1||Monness Crespi & Hardt||Buy||Buy|
|2019-3-1||Monness Crespi & Hardt||n/a||Buy|
|2019-3-1||Jefferies Financial Group||n/a||Buy|
Splunk stock analysis
Shares of Splunk depreciated a fateful -1.43% and closed at $136.51.
Splunk depreciated a fateful -1.43% and closed at $136.51. Since price and SMA200d lines crossed up on June 13th, SPLK climbed $20.38 (17.55%). From a daily perspective, SPLK is in a short term uptrend after plotting its last bottom ($117.78, on Jun/25) higher than the previous bottom, and its last top ($139.54, yesterday) also over the previous top. Now trading in between its last bottom and last top SPLK might consolidate in a plain range, waiting to break out over $139.54 or down under $117.78. Since last March when SMA100d and SMA200d crossed up, SPLK price gained $13.18 per share (10.69%). On March, SPLK hit new all time highs, pushing higher previous ATH of $139.04 recorded on February. New ATHs are usual entry points for many trading setups as there aren't higher resistences.
After climbing for 4 weeks, this week Splunk stayed stable a neutral -0.23%, closing at $136.51. By mid June SPLK rocketed an exceptional 5.84% in just one week.
By mid June SPLK price bounced up over the SMA of 40 weeks that acted as support stopping new slides. Far behind is the all-time high Splunk recorded late February but price is just -5.00% below that top. Since late February when SMA20w and SMA40w crossed up, SPLK price gained $1.95 per share (1.45%).
Splunk stock price history
Splunk IPO was on April 19th, 2012 at $32.00 per share1. Since then, SPLK stock grew a 326.60%, with an average of 46.70% per year. If you had invested right after SPLK's IPO a $1,000 in Splunk stock in 2012, it would worth $3,266.00 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 $160.00Nobody can reliably foresee how stock prices may evolve in the future. However, financial institutions invest time and resources to provide the most accurated estimations to help investors to make their decisions. The accuracy of these stock price predictions is not very high, and you should not blindly believe and make decisions only based on what this ratings or price target predictions say. We detected 14 price forecasts for Splunk stock posted in the last 30 days:
|Date||Analyst / Broker||Action||Previous target||Current target||Diff|
|2019-6-7||Goldman Sachs Group||Initiates||n/a||$119.00||-|
|2019-6-24||Piper Jaffray Companies||Reiterates||n/a||$160.00||-|
|2019-3-19||Morgan Stanley||Set Price Target||$121.00||$140.00||15.7%|
|2019-3-1||Wells Fargo & Co||Raises Target||$145.00||$165.00||13.8%|
|2019-3-1||Raymond James||Raises Target||$122.00||$157.00||28.7%|
|2019-3-1||Needham & Company LLC||Reiterates||$145.00||$162.00||11.7%|
|2019-3-1||Needham & Company LLC||Raises Target||$145.00||$162.00||11.7%|
|2019-3-1||Monness Crespi & Hardt||Reiterates||$170.00||$200.00||17.6%|
|2019-3-1||Monness Crespi & Hardt||Raises Target||$170.00||$200.00||17.6%|
|2019-3-1||Maxim Group||Raises Target||n/a||$159.00||-|
|2019-3-1||Jefferies Financial Group||Reiterates||$157.00||$142.30||-9.4%|
Financials and fundamental analysis
Earnings date and Earnings per ShareSplunk let down experts on February when it published an Earnings per Share (EPS) of $0.17 when the market consensus was $0.20.
|Quarter||Reporting date||Estimated EPS||Actual EPS||Surprise|
Annual financial resultsCompared to 2018, last anual revenues report draw an extraordinary growth of 41.88% to $1,803.01 M USD. Instead, its income margin (compared to revenues) escalated to -15.28%, that is $-275.58 million.
|2014||$303 M||-||$-79.01 M-26.1%||-|
|2014||$451 M||48.99%||$-217.12 M-48.2%||174.80%|
|2015||$451 M||0.00%||$-217.12 M-48.2%||0.00%|
|2015||$668 M||48.25%||$-278.77 M-41.7%||28.40%|
|2016||$668 M||0.00%||$-278.77 M-41.7%||0.00%|
|2016||$950 M||42.12%||$-355.19 M-37.4%||27.41%|
|2017||$950 M||0.00%||$-355.19 M-37.4%||0.00%|
|2017||$1,270 M||33.69%||$-259.10 M-20.4%||-27.05%|
|2018||$1,271 M||0.06%||$-259.10 M-20.4%||0.00%|
|2019||$1,803 M||41.88%||$-275.58 M-15.3%||6.36%|
Quarterly financial resultsSplunk reported $622.09 million in revenues for 2019-Q1, a 29.34% up compared to previous quarter. Reported quarter earnings marked $2.13 million with a profit margin of 0.34%. Profit margin climbed a 11.92% compared to previous quarter when profit margin was -11.58%. When comparing sales to same quarter last year, Splunk sales marked a super good growth and rocketed a 47.66%. Looking back to recent quarterly results, Splunk posted 3 negative quarters in a row.
|2017-Q2||$242 M||-||$-99.93 M-41.2%||-|
|2017-Q3||$280 M||15.47%||$-83.50 M-29.8%||-16.44%|
|2017-Q4||$329 M||17.39%||$-50.60 M-15.4%||-39.40%|
|2018-Q1||$421 M||28.19%||$-35.72 M-8.5%||-29.41%|
|2018-Q2||$312 M||-26.03%||$-118.50 M-38.0%||231.76%|
|2018-Q3||$388 M||24.60%||$-103.50 M-26.7%||-12.66%|
|2018-Q4||$481 M||23.87%||$-55.71 M-11.6%||-46.18%|
|2019-Q1||$622 M||29.34%||$2.13 M0.3%||-103.82%|
Splunk ownershipWhen you are planning to buy shares of a stock, it's always worth to overview its ownership structure.
Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For Splunk, 0.42% of all outstanding shares are owned by its staff.
Bearish positions for SPLK stock account 0.00%, no big difference from last month.
The following table compares ownership indicators for other stocks related to Splunk:
|Market cap||$20.5 B||$13.1 B||$127.1 B||$1.0 B||$4.2 B|
|Total shares||150.2 M||75.8 M||886.6 M||8.2 M||117.1 M|
|Float shares||149.3 M||75.4 M||885.9 M||8.2 M||115.7 M|
|- Institutional holdings (%)||95.0%||98.8%||57.5%||96.6%||26.7%|
|- Insider holdings (%)||0.4%||0.6%||0.1%||0.1%||0.0%|
|Shares in short selling||0.0%||0.0%||0.0%||0.0%||0.0%|
|Tuesday, July 16th, 2019|
|Day range||$135.92 - $138.26|
|Average true range||$3.39|
|50d mov avg||$125.63|
|100d mov avg||$127.86|
|200d mov avg||$118.44|
Splunk performanceTo measure stock performance is always good to compare with competitors or related stocks. For Splunk, the benchmark is made against Tableau Software, International Business Machines, MicroStrategy, Teradata and Varonis Systems.
Splunk competitorsOne check before investing in any stock is to review a list of its competitors, in this case for Splunk. We selected 5 companies as Splunk competitors as they are in the same industry or have similar market objectives.
- Tableau Software (DATA)
- International Business Machines (IBM)
- MicroStrategy (MSTR)
- Teradata (TDC)
- Varonis Systems (VRNS)
Latest Splunk stock news
- Seeking AlphaSplunk Is Still A Great Buying OpportunityJuly 8, 2019
- Seeking AlphaBuying Opportunity In Splunk StockJune 14, 2019
- Seeking AlphaSplunk: Better DealJune 13, 2019
- Seeking AlphaSplunk: What Is Going On In Its CaveMay 29, 2019
- InvestorPlaceSplunk Earnings: SPLK Stock Down Despite Q1 Earnings BeatMay 23, 2019