This trade activity should not be overlooked: Sumo Logic Inc. (SUMO)

Sumo Logic Inc. (NASDAQ: SUMO) stock jumped 28.68% on Monday to $9.87 against a previous-day closing price of $7.67. With 10.91 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.94 million shares. During the session, the Software – Infrastructure company that operates in wider Technology sector, reached to the highest price of $10.24 whereas the lowest price it dropped to was $7.65. The 52-week range on SUMO shows that it touched its highest point at $12.67 and its lowest point at $6.43 during that stretch. It currently has a 1-year price target of $11.07.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of SUMO was up-trending over the past week, with a rise of 26.54%, but this was up by 22.00% over a month. Three-month performance surged to 38.04% while six-month performance rose 34.29%. The stock lost -12.96% in the past year, while it has gained 21.85% so far this year. A look at the trailing 12-month EPS for SUMO yields -1.13 with Next year EPS estimates of -0.33. For the next quarter, that number is -0.09. This implies an EPS growth rate of 31.00% for this year and 8.30% for next year.

Float and Shares Shorts:

At present, 119.12 million SUMO shares are outstanding with a float of 113.76 million shares on hand for trading. On Oct 13, 2022, short shares totaled 5.77 million, which was 4.87% higher than short shares on Sep 14, 2022. In addition to Mr. Ramin Sayar as the firm’s CEO, Pres & Director, Mr. Christian Beedgen serves as its Co-Founder, Chief Technology Officer & Director.

Institutional Ownership:

Through their ownership of 71.08% of SUMO’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 31.93% of SUMO, in contrast to 22.71% held by mutual funds. Shares owned by individuals account for 18.27%. As the largest shareholder in SUMO with 8.50% of the stake, The Vanguard Group, Inc. holds 10,205,152 shares worth 10,205,152. A second-largest stockholder of SUMO, BlackRock Fund Advisors, holds 7,196,513 shares, controlling over 6.00% of the firm’s shares. Brown Advisory LLC is the third largest shareholder in SUMO, holding 3,373,891 shares or 2.81% stake. With a 2.37% stake in SUMO, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 2,845,248 shares are owned by the mutual fund manager. The iShares Russell 2000 ETF, which owns about 2.17% of SUMO stock, is the second-largest Mutual Fund holder. It holds 2,598,966 shares valued at 21.05 million. Legal & General UCITS ETF PLC – C holds 2.12% of the stake in SUMO, owning 2,538,624 shares worth 20.56 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for SUMO since 10 analysts follow the stock currently. There are 5 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 5 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With SUMO analysts setting a high price target of $19.00 and a low target of $8.50, the average target price over the next 12 months is $12.06. Based on these targets, SUMO could surge 92.5% to reach the target high and fall by -13.88% to reach the target low. Reaching the average price target will result in a growth of 22.19% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. SUMO will report FY 2023 earnings on 03/08/2023. Analysts have provided yearly estimates in a range of -$0.35 being high and -$0.37 being low. For SUMO, this leads to a yearly average estimate of -$0.36. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Sumo Logic Inc. surprised analysts by $0.11 when it reported -$0.04 EPS against a consensus estimate of -$0.15. The surprise factor in the prior quarter was $0.04. Based on analyst estimates, the high estimate for the next quarter is -$0.08 and the low estimate is -$0.09. The average estimate for the next quarter is thus -$0.09.

Summary of Insider Activity:

Insiders traded SUMO stock several times over the past three months with 2 Buys and 7 Sells. In these transactions, 71,039 shares were bought while 213,402 shares were sold. The number of buy transactions has increased to 20 while that of sell transactions has risen to 42 over the past year. The total number of shares bought during that period was 1,052,096 while 816,051 shares were sold.

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