Note: All figures in this article are sourced from the original report dated June 10–12, 2019. This is a historical snapshot and should not be treated as current investment advice.
Overview: Day Trading vs. Swing Trading
For anyone entering the world of stock trading, one of the first decisions to make is whether to pursue day trading or swing trading. While both strategies share the same ultimate goal — generating profit — they differ significantly in approach, time commitment, and the technical tools they rely on.
- Day traders open and close positions within a single trading session, relying heavily on intraday charts, momentum indicators, and tight risk controls.
- Swing traders hold positions over several days or weeks, using broader technical patterns and fundamental catalysts to time their entries and exits.
Choosing the right strategy depends on several personal and financial factors, including available time, account size, risk tolerance, skill level, and psychological temperament. Neither approach is universally superior — the right fit depends on the individual trader.
Splunk Inc. (SPLK): Company Snapshot
Splunk Inc. is a US-based technology company operating in the Application Software industry within the broader Technology sector. As of the trading session on Monday, June 10, 2019, the following figures were reported:
- Last closing price: $118.51
- Daily change: +6.44%
- Market capitalisation: $17.50 billion
- Earnings Per Share (EPS): -$2.11
- Shares outstanding: 147.68 million
Shares outstanding refers to all authorised, issued, and investor-held shares of a corporation. This figure equals issued shares minus treasury shares, and it includes both publicly available float and any restricted shares held by insiders or company officers.
Performance Review
Looking at SPLK’s price performance across multiple timeframes as of the report date:
| Timeframe | Performance |
|---|---|
| Weekly | +8.67% |
| Monthly | -10.51% |
| Quarterly | -5.80% |
| 6-Month | +6.67% |
The mixed performance across timeframes suggests a stock experiencing significant short-term volatility against a backdrop of modest longer-term gains. The analyst consensus recommendation for SPLK stood at 1.9 on a standard scale (where 1 = Strong Buy and 5 = Strong Sell), indicating a generally bullish outlook from the analyst community.
Technical Analysis Indicators
Volatility and Beta
Volatility measures the degree of variation in a security’s price over time. It can be expressed using standard deviation or variance relative to a benchmark index.
- Average True Range (ATR): 5.19 — indicating the average daily price range, useful for setting stop-loss levels.
- Beta: 2.05 — meaning SPLK historically moves roughly twice as much as the broader market. High beta implies higher risk and reward potential.
- Weekly volatility: 3.45%
- Monthly volatility: 3.80%
EPS Growth Projections
Earnings Per Share (EPS) is the portion of a company’s profit allocated to each outstanding common share. It is a primary indicator of financial health and profitability.
- EPS growth (coming year): 31.1%
- EPS for prior 5 years: -20.3%
- EPS forecast for next 5 years: 35.1%
While Splunk reported a negative trailing EPS of -$2.11 at the time, the forward-looking EPS growth figures suggest analyst expectations of significant improvement in profitability, consistent with a growth-stage software company investing heavily in market expansion.
Price Target
The consensus analyst price target for SPLK was set at $151.66, representing meaningful upside potential from the June 10 closing price of $118.51 — approximately a 27.9% premium.
Profitability Ratios
Profitability ratios help investors assess how efficiently a company generates earnings relative to its assets, equity, and invested capital.
- Return on Equity (ROE): 0%
- Return on Assets (ROA): 0%
- Return on Investment (ROI): -8.4%
- Relative Strength Index (RSI): 44.55
An RSI reading of 44.55 places SPLK in neutral territory — below the overbought threshold of 70 and above the oversold threshold of 30. This suggests the stock was neither showing excessive buying pressure nor distressed selling at the time of the report.
Simple Moving Averages (SMA)
Simple Moving Averages (SMAs) are widely used to identify trend direction and potential support or resistance levels. The distance of a stock’s current price from its key SMAs provides context on momentum:
| SMA Period | Distance from Current Price |
|---|---|
| 20-Day SMA | -4.56% |
| 50-Day SMA | -7.98% |
| 200-Day SMA | +0.63% |
The negative distances from the 20-day and 50-day SMAs indicate the stock was trading below these shorter-term averages at the time, suggesting bearish near-term momentum. However, the stock was still marginally above its 200-day SMA (+0.63%), which many long-term investors regard as a key dividing line between bull and bear phases.
Summary
As of June 10, 2019, Splunk Inc. (NASDAQ: SPLK) presented a mixed but broadly constructive technical picture. The stock showed strong short-term price action (+6.44% on the day, +8.67% weekly) despite lagging key short-term moving averages. High beta (2.05) and elevated volatility made it a candidate for active traders rather than conservative, income-focused investors. Forward EPS growth expectations and a price target well above the prevailing price reflected analyst optimism about Splunk’s long-term trajectory as an enterprise data platform.
This article is based on a historical report from June 2019. All figures are time-sensitive and should not be used for current investment decisions. Always conduct your own due diligence or consult a qualified financial adviser.