New Relic (NEWR) Raised to “Buy” at DA Davidson

DA Davidson upgraded shares of New Relic (NYSE:NEWR) from a neutral rating to a buy rating in a research note released on Tuesday morning, MarketBeat Ratings reports. The brokerage currently has $105.00 price objective on the software maker’s stock. DA Davidson also issued estimates for New Relic’s Q2 2020 earnings at ($0.07) EPS, Q3 2020 earnings at ($0.02) EPS, FY2020 earnings at ($0.23) EPS, Q1 2021 earnings at $0.00 EPS, Q2 2021 earnings at ($0.03) EPS and FY2021 earnings at ($0.03) EPS. The analysts noted that the move was a valuation call.

Other equities analysts have also issued research reports about the stock. Needham & Company LLC upped their price objective on shares of New Relic from $121.00 to $129.00 and gave the company a buy rating in a report on Wednesday, August 8th. ValuEngine lowered shares of New Relic from a strong-buy rating to a buy rating in a report on Monday, July 30th. Deutsche Bank initiated coverage on shares of New Relic in a report on Monday, June 25th. They set a buy rating and a $125.00 price objective on the stock. Zacks Investment Research upgraded shares of New Relic from a hold rating to a buy rating and set a $118.00 price objective on the stock in a report on Tuesday, August 14th. Finally, TheStreet upgraded shares of New Relic from a d rating to a c rating in a report on Thursday, August 23rd. Seven equities research analysts have rated the stock with a hold rating, eleven have issued a buy rating and one has issued a strong buy rating to the company’s stock. The company presently has a consensus rating of Buy and an average target price of $97.00.

NEWR traded down $1.21 during trading on Tuesday, reaching $83.82. 789,372 shares of the stock traded hands, compared to its average volume of 977,475. The company has a current ratio of 3.83, a quick ratio of 3.83 and a debt-to-equity ratio of 1.28. The stock has a market capitalization of $4.81 billion, a P/E ratio of -113.27 and a beta of 0.78. New Relic has a 12 month low of $49.56 and a 12 month high of $114.78.



New Relic (NYSE:NEWR) last announced its quarterly earnings data on Tuesday, August 7th. The software maker reported $0.15 earnings per share for the quarter, beating the consensus estimate of $0.11 by $0.04. New Relic had a negative net margin of 9.13% and a negative return on equity of 12.19%. The firm had revenue of $108.22 million for the quarter, compared to analyst estimates of $106.09 million. As a group, research analysts predict that New Relic will post -0.38 EPS for the current fiscal year.

In related news, insider James R. Gochee sold 4,000 shares of the company’s stock in a transaction dated Wednesday, October 17th. The shares were sold at an average price of $89.99, for a total value of $359,960.00. Following the sale, the insider now owns 306,946 shares in the company, valued at approximately $27,622,070.54. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Lewis Cirne sold 89,000 shares of the company’s stock in a transaction dated Thursday, August 2nd. The stock was sold at an average price of $101.80, for a total transaction of $9,060,200.00. The disclosure for this sale can be found here. Insiders sold a total of 435,742 shares of company stock worth $42,865,771 in the last 90 days. 20.40% of the stock is currently owned by company insiders.

Institutional investors and hedge funds have recently bought and sold shares of the stock. Tower Research Capital LLC TRC increased its stake in New Relic by 95.1% in the 2nd quarter. Tower Research Capital LLC TRC now owns 1,198 shares of the software maker’s stock valued at $121,000 after buying an additional 584 shares during the last quarter. First Quadrant L P CA purchased a new stake in New Relic in the 3rd quarter valued at about $139,000. Cerebellum GP LLC purchased a new stake in New Relic in the 2nd quarter valued at about $172,000. CIBC Asset Management Inc purchased a new stake in New Relic in the 2nd quarter valued at about $200,000. Finally, Stifel Financial Corp purchased a new stake in New Relic in the 1st quarter valued at about $203,000. Institutional investors own 77.06% of the company’s stock.

New Relic Company Profile

New Relic, Inc, a software-as-a-service company, provides various digital products worldwide. Its cloud-based platform and suite of products include New Relic Platform, which enable organizations to collect, store, and analyze data. The company offers New Relic Application Performance Management that provides visibility into the performance and usage of server-based applications, such as data pertaining to response time, transaction throughput, error rates, top transactions, and user satisfaction; New Relic Mobile, which provides code-level visibility into the performance and health of mobile applications running on the iOS and Android mobile operating systems; and New Relic Browser that monitors the page view experiences of actual end-users for desktop and mobile browser-based applications.

See Also: Moving Average (MA)

Analyst Recommendations for New Relic (NYSE:NEWR)

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