Note: All figures and ratings in this article reflect publicly reported data from August 2019. This article is intended as a historical record and should not be used as the basis for current investment decisions.
KeyCorp Reiterates “Hold” Rating on New Relic
Investment analysts at KeyCorp reiterated a “hold” rating on shares of New Relic, Inc. (NYSE: NEWR) in a research note published on Wednesday, August 7, 2019, according to TipRanks.
Broader Analyst Coverage
KeyCorp’s reiterating of the hold rating came amid a flurry of analyst activity around the same period:
- Zacks Investment Research upgraded New Relic from “sell” to “hold” on July 17, 2019.
- Needham & Company LLC maintained a “buy” rating and set a price target of $120.00 on August 7, 2019.
- Oppenheimer lowered its price target from $125.00 to $109.00 while retaining an “outperform” rating on August 7, 2019.
- ValuEngine downgraded New Relic from “buy” to “hold” on August 8, 2019.
- Morgan Stanley cut its price target from $115.00 to $104.00 while keeping an “overweight” rating on August 7, 2019.
Across all tracked analysts at the time, one had assigned a sell rating, seven had issued hold ratings, and ten had given buy ratings. The consensus rating stood at “Buy” with an average price target of $99.07.
Stock Performance and Key Metrics
As of the trading session referenced in the report, NEWR shares rose $1.50 to reach $58.50. Trading volume came in at 1,447,334 shares, below the average daily volume of approximately 1,842,761 shares.
| Metric | Value |
|---|---|
| 52-Week Low | $55.60 |
| 52-Week High | $113.34 |
| Market Capitalization | $3.35 billion |
| P/E Ratio | -188.71 |
| Beta | 0.83 |
| 50-Day Moving Average | $80.50 |
| 200-Day Moving Average | $95.27 |
| Quick Ratio | 2.88 |
| Current Ratio | 2.88 |
| Debt-to-Equity Ratio | 1.32 |
Quarterly Earnings Results
New Relic reported its fiscal quarter earnings on Tuesday, August 6, 2019. Key highlights included:
- EPS: ($0.16), beating the Zacks consensus estimate of ($0.18) by $0.02.
- Revenue: $141.01 million, slightly above analyst estimates of $139.73 million.
- Year-over-year revenue growth: 30.3%.
- Net margin: -9.93%.
- Return on equity: -8.55%.
- Prior-year quarter EPS: $0.15 (profitable).
Analysts were collectively forecasting full-year EPS of -$0.68 for the then-current fiscal year.
Insider Transactions
Several notable insider sales were disclosed to the SEC during the period:
- CEO Lewis Cirne sold 19,500 shares on June 4, 2019, at an average price of $97.72 per share, totaling approximately $1,905,540.
- CFO Mark Sachleben sold 15,000 shares on June 18, 2019, at an average price of $96.98 per share, totaling approximately $1,454,700.
In aggregate, insiders sold 133,904 shares valued at approximately $11,498,947 during the preceding quarter. Company insiders held approximately 17.40% of outstanding shares at the time.
Institutional Ownership Activity
A number of institutional investors adjusted their New Relic positions in the first and second quarters of 2019:
- Cornerstone Advisors Inc. increased its position by 58.4% in Q1 2019, holding 358 shares valued at approximately $35,000.
- Wedbush Securities Inc. grew its stake by 5.9% in Q2 2019, holding 2,661 shares valued at approximately $230,000.
- Nvwm LLC raised its position by 4.1% in Q2 2019, holding 4,869 shares valued at approximately $421,000.
- Coldstream Capital Management Inc. increased its holdings by 8.6% in Q2 2019, holding 2,516 shares valued at approximately $218,000.
- Flinton Capital Management LLC expanded its stake by 51.9% in Q2 2019, holding 656 shares valued at approximately $57,000.
Collectively, hedge funds and other institutional investors owned approximately 74.72% of New Relic’s outstanding shares at the time of the report.
About New Relic
New Relic, Inc. is a software-as-a-service (SaaS) company that provides cloud-based observability and digital intelligence products to organizations worldwide. Its platform enables teams to collect, store, and analyze telemetry data across their software stacks. Core product offerings included:
- New Relic APM (Application Performance Management): Delivers code-level visibility into server-based application performance, including response times, transaction throughput, error rates, and user satisfaction scores.
- New Relic Mobile: Monitors the performance and health of iOS and Android mobile applications at the code level.
- New Relic Browser: Tracks real-user page view experiences for desktop and mobile browser-based applications.
Source: rivertonroll.com (original syndicated report, August 2019). All financial data reflects conditions as of the report date and should not be interpreted as current.