Pure Storage Inc. [NYSE:PSTG] has active tape with a current price of $17.63 against an analyst price target of 19.80.
For the year, the stock is trading 2.69% and the five-day change stands at 12.99%. As a point of reference, the S&P 500 is trading 1.11% YTD.
Other data to note about the company today is the Recommendation Trend that is leaning toward Pure Storage Inc. [PSTG] as Moderate Buy.
Wait and see
Holding a Market Cap of $4.76 billion, Pure Storage Inc. has seen a trading range over the last year of $7.93-$20.50.
For the last five days, PSTG is up from its last closing price. The average shares trading hands each day is 4.11M, with average 10-day volume coming in at 5.19 million.
Using a Force Index Indicator is a good way to look at how strong actual buying and selling pressure is for PSTG. When we apply the Elder Force Index to Pure Storage Inc., we are seeing an Elder Force Indicator number of 53071.32.
Recent Performance
The recent performance of the stock is another area that can tell traders how to proceed. PSTG is presenting an interesting case. This can be seen in the Forward P/E ratio, which currently stands at 62.30. Moreover, the company’s enterprise value has gone from $4.07B to $3.10B quarter-over-quarter. Obviously, the company is heading in the wrong direction, but there are still opportunities for growth in the sector.
In the last quarter, PSTG made a profit of 268.32 million. Pure Storage Inc. also saw quarter revenue growth year over year of 20.86%. In addition, the company has operating cash flow of $219.92 million.
Technical Analysis
Looking at popular technical indicators, the company’s 5-day moving average is 17.40 compared to the 50-day moving average of 15.43. So, we are clearly seeing an upward trajectory here.
The Relative Strength Index or RSI is an indicator ranging between 0 and 100 that traders use to determine if a stock is “overbought” or “oversold.” A strong uptrend tending to reach into the “overbought” status is above 70, while a downward trend will stay around the 30 mark. PSTG currently holds a 9-day RSI of 73.67%, while 100-day RSI stands at 51.84%.
Another indicator we believe is worth keeping tabs on is the Moving Average Convergence Divergence or MACD. Similar to the concept of the Force Index — on the basis of price momentum — the MACD gives traders a tool to measure the turning point of a stock even during rapid fluctuations in price. Buy and sell signals are determined by a stock’s relation to the zero line, so if a stock is above a zero line for many weeks it might be a “buy.” On the other hand, if a stock is below the zero line consistently, it might be one to stay away from. Also, if the MACD line reaches a peak and dips, its momentum may be waning. PSTG’s 9-day MACD is 1.00 and the company’s 100-day MACD stands at 1.12.
Inside Moves
Another area that is important to analyze is insider moves and majority shareholders. While this is not always an error-free way to tell what the future holds for a stock, you can maybe gather important information from reading the tea leaves about who is buying and selling.
The major holders for this stock are 9.63% by insiders and 83.12% by institutions. Regarding institutional holdings, Vanguard Group, Inc. (The) owns 8.18%, while the second top holder, Champlain Investment Partners, LLC, currently owns 6.95%.
Over the last six months, insiders have sold 9,454 with the most recent transaction from Dietzen Scott, Director, with a sell at price 18.00 per share.
Conclusion
Overall, the recommended rating for PSTG is Moderate Buy. Currently, the company has 21 analysts watching the stock, and the average quarterly earnings estimate is -0.01. Quarterly revenue estimates are averaging 404.48M with the high estimate reaching 409.36M and the low at 398M.
To review, the current 1-year target estimate is sitting at 19.80, while the current price 17.63. Based on this, we expect the stock to rise considering the aforementioned fundamentals.
