Splunk stock: buy or sell?

SPLK stock price: $136.51 -1.43% At close on July 16th, 2019

Updated on:
July 16th, 2019

4

Splunk shares depreciated -1.43% to $136.51 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?

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.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This is not a selling recommendation at all, just it's not the best moment to buy if you follow any of these trading strategies.

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.
Is SPLK a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
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
2019-3-1Wells Fargo & CoOutperformOutperform
2019-3-1Wedbushn/aOutperform
2019-3-1WedbushOutperformOutperform
2019-3-1Raymond JamesOutperformOutperform
2019-3-1Needham & Company LLCBuyBuy
2019-3-1Needham & Company LLCn/aBuy
2019-3-1Monness Crespi & HardtBuyBuy
2019-3-1Monness Crespi & Hardtn/aBuy
2019-3-1Maxim Groupn/aBuy
2019-3-1Jefferies Financial Groupn/aBuy

Splunk stock analysis

Daily outlook

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.

SPLK stock chart (daily)

Weekly outlook

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%).

SPLK stock chart (weekly)

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 $160.00

Nobody 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:
SPLK stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
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%
2019-3-1Wells Fargo & CoRaises Target$145.00$165.0013.8%
2019-3-1WedbushReiterates$146.00$159.008.9%
2019-3-1WedbushRaises Target$146.00$159.008.9%
2019-3-1Raymond JamesRaises Target$122.00$157.0028.7%
2019-3-1Needham & Company LLCReiterates$145.00$162.0011.7%
2019-3-1Needham & Company LLCRaises Target$145.00$162.0011.7%
2019-3-1Monness Crespi & HardtReiterates$170.00$200.0017.6%
2019-3-1Monness Crespi & HardtRaises Target$170.00$200.0017.6%
2019-3-1Maxim GroupRaises Targetn/a$159.00-
2019-3-1Jefferies Financial GroupReiterates$157.00$142.30-9.4%
(in average)$133.50$160.0020.0%
The price target for Splunk stock is $160.00, moving in a range between $200.00 and $119.00. In average, analysts' outlook on SPLK price forecast is positive, increasing the forecast by a 20.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

Splunk let down experts on February when it published an Earnings per Share (EPS) of $0.17 when the market consensus was $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

Compared 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.

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 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.
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 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:

SPLKDATAIBMMSTRTDC
Market cap$20.5 B$13.1 B$127.1 B$1.0 B$4.2 B
Total shares150.2 M75.8 M886.6 M8.2 M117.1 M
Float shares149.3 M75.4 M885.9 M8.2 M115.7 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 selling0.0%0.0%0.0%0.0%0.0%

Splunk summary

Tuesday, July 16th, 2019
Open$138.00
Close$136.51
Day range$135.92 - $138.26
Previous close$138.49
Session gain-1.43%
Average true range$3.39
50d mov avg$125.63
100d mov avg$127.86
200d mov avg$118.44
Daily patternlt06a
Weekly pattern

Splunk performance

To 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.
Stock3m6m12m
SPLKSplunk6.58%13.08%29.38%
DATATableau Software45.41%39.40%55.89%
IBMInternational Bus...3.35%18.49%2.62%
MSTRMicroStrategy-15.61%-9.32%-8.63%
TDCTeradata-19.43%-17.58%-12.35%
VRNSVaronis Systems11.79%28.59%-15.11%

Splunk competitors

One 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.

Latest Splunk stock news