A better buy-in window may exist right now for Pure Storage Inc. (PSTG)

Pure Storage Inc. (NYSE: PSTG) stock jumped 5.54% on Thursday to $25.89 against a previous-day closing price of $24.53. With 6.26 million shares changed hands, the volume of the stock remained heavier than its average volume of 5.11 million shares. During the session, the Computer Hardware company that operates in wider Technology sector, reached to the highest price of $26.05 whereas the lowest price it dropped to was $25.29. The 52-week range on PSTG shows that it touched its highest point at $32.45 and its lowest point at $22.14 during that stretch. It currently has a 1-year price target of $35.46. Beta for the stock currently stands at 1.20.

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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 PSTG was up-trending over the past week, with a rise of 4.31%, but this was up by 14.30% over a month. Three-month performance dropped to -7.83% while six-month performance fell -15.06%. The stock gained 15.94% in the past year, while it has lost -3.25% so far this year. A look at the trailing 12-month EPS for PSTG yields 0.15 with Next year EPS estimates of 1.62. For the next quarter, that number is 0.24. This implies an EPS growth rate of 143.00% for this year and 24.69% for next year. EPS is expected to grow by 32.23% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 22.20%.

Float and Shares Shorts:

At present, 303.61 million PSTG shares are outstanding with a float of 280.25 million shares on hand for trading. On May 14, 2023, short shares totaled 8.09 million, which was 2.63% higher than short shares on Apr 13, 2023. In addition to Mr. Charles H. Giancarlo as the firm’s Chairman & CEO, Mr. John Colgrove serves as its Founder, Chief Visionary Officer & Director.

Institutional Ownership:

Through their ownership of 89.24% of PSTG’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 9.72% of PSTG, in contrast to 42.65% held by mutual funds. Shares owned by individuals account for 39.41%. As the largest shareholder in PSTG with 14.47% of the stake, Fidelity Management & Research Co holds 44,580,829 shares worth 44,580,829. A second-largest stockholder of PSTG, The Vanguard Group, Inc., holds 28,594,282 shares, controlling over 9.28% of the firm’s shares. Champlain Investment Partners LLC is the third largest shareholder in PSTG, holding 14,395,833 shares or 4.67% stake. With a 4.34% stake in PSTG, the Fidelity Growth Company Fund is the largest stakeholder. A total of 13,363,413 shares are owned by the mutual fund manager. The Vanguard Total Stock Market ETF, which owns about 2.89% of PSTG stock, is the second-largest Mutual Fund holder. It holds 8,913,676 shares valued at 203.5 million. Vanguard Small Cap Index Fund holds 2.44% of the stake in PSTG, owning 7,521,170 shares worth 171.71 million.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Feb 04, 2023, PSTG reported revenue of $620.40M and operating income of -$4.57M. The EBITDA in the recently reported quarter was $18.10M and diluted EPS was -$0.04.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for PSTG since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With PSTG analysts setting a high price target of $47.00 and a low target of $30.00, the average target price over the next 12 months is $35.33. Based on these targets, PSTG could surge 81.54% to reach the target high and rise by 15.87% to reach the target low. Reaching the average price target will result in a growth of 36.46% 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.

Summary of Insider Activity:

Insiders traded PSTG stock several times over the past three months with 5 Buys and 8 Sells. In these transactions, 1,071,215 shares were bought while 328,553 shares were sold. The number of buy transactions has increased to 15 while that of sell transactions has risen to 30 over the past year. The total number of shares bought during that period was 1,490,991 while 1,088,285 shares were sold.

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