Zacks Investment Research Upgrades New Relic (NYSE:NEWR) to “Hold”

Zacks Investment Research upgraded shares of New Relic (NYSE:NEWR) from a sell rating to a hold rating in a report issued on Friday, Zacks.com reports.

According to Zacks, “New Relic, Inc. is a software analytics company. The Company offers solution which includes application development, production monitoring, real-time analytics, mobile application management and digital transformation. Its products include new relic APM, new relic mobile, new relic insights, new relic services, new relic browser and new relic platform. New Relic, Inc. is based in San Francisco, United States. “

Several other equities research analysts have also recently issued reports on the stock. Deutsche Bank reissued a buy rating and issued a $65.00 price objective (down from $90.00) on shares of New Relic in a research report on Monday, September 16th. DA Davidson set a $95.00 price objective on shares of New Relic and gave the company a buy rating in a research report on Thursday, August 29th. Morgan Stanley lowered their price objective on shares of New Relic from $84.00 to $80.00 and set an overweight rating for the company in a research report on Tuesday, September 17th. Goldman Sachs Group lowered their price objective on shares of New Relic from $65.00 to $52.00 and set a sell rating for the company in a research report on Monday, September 16th. Finally, Oppenheimer lowered their price objective on shares of New Relic from $85.00 to $80.00 and set an outperform rating for the company in a research report on Friday, October 11th. One research analyst has rated the stock with a sell rating, eight have assigned a hold rating and twelve have issued a buy rating to the stock. The company presently has a consensus rating of Buy and an average price target of $84.12.

NYSE:NEWR traded down $0.50 during mid-day trading on Friday, hitting $65.51. 900,208 shares of the stock traded hands, compared to its average volume of 1,013,988. The stock has a market capitalization of $3.88 billion, a price-to-earnings ratio of -211.32 and a beta of 0.97. New Relic has a 52 week low of $50.00 and a 52 week high of $109.00. The firm’s 50 day moving average is $62.39 and its two-hundred day moving average is $79.62. The company has a quick ratio of 2.88, a current ratio of 2.88 and a debt-to-equity ratio of 1.32.

New Relic (NYSE:NEWR) last issued its quarterly earnings results on Tuesday, November 5th. The software maker reported $0.24 EPS for the quarter, beating the consensus estimate of ($0.15) by $0.39. The company had revenue of $145.80 million for the quarter, compared to the consensus estimate of $143.43 million. New Relic had a negative net margin of 11.26% and a negative return on equity of 9.07%. The firm’s revenue was up 26.9% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.20 EPS. As a group, research analysts predict that New Relic will post -0.74 EPS for the current year.

In other news, insider James R. Gochee sold 1,788 shares of the company’s stock in a transaction that occurred on Friday, August 16th. The shares were sold at an average price of $58.96, for a total value of $105,420.48. Following the completion of the sale, the insider now owns 127,213 shares of the company’s stock, valued at approximately $7,500,478.48. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CRO Erica Schultz sold 4,340 shares of the company’s stock in a transaction that occurred on Monday, August 19th. The stock was sold at an average price of $58.21, for a total transaction of $252,631.40. Following the completion of the sale, the executive now directly owns 22,002 shares of the company’s stock, valued at approximately $1,280,736.42. The disclosure for this sale can be found here. Insiders sold a total of 57,704 shares of company stock valued at $3,529,568 in the last ninety days. Corporate insiders own 17.40% of the company’s stock.

Institutional investors and hedge funds have recently made changes to their positions in the company. Farmers & Merchants Trust Co of Chambersburg PA purchased a new stake in shares of New Relic in the 3rd quarter worth approximately $27,000. NEXT Financial Group Inc lifted its position in shares of New Relic by 905.3% in the 3rd quarter. NEXT Financial Group Inc now owns 573 shares of the software maker’s stock worth $35,000 after purchasing an additional 516 shares during the period. Winslow Evans & Crocker Inc. lifted its position in shares of New Relic by 44.8% in the 3rd quarter. Winslow Evans & Crocker Inc. now owns 666 shares of the software maker’s stock worth $44,000 after purchasing an additional 206 shares during the period. Point72 Hong Kong Ltd purchased a new stake in shares of New Relic in the 2nd quarter worth approximately $55,000. Finally, Flinton Capital Management LLC lifted its position in shares of New Relic by 51.9% in the 2nd quarter. Flinton Capital Management LLC now owns 656 shares of the software maker’s stock worth $57,000 after purchasing an additional 224 shares during the period. 78.38% of the stock is owned by hedge funds and other institutional investors.

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.

Featured Story: Stocks Increasing Dividends

Get a free copy of the Zacks research report on New Relic (NEWR)

For more information about research offerings from Zacks Investment Research, visit Zacks.com

Analyst Recommendations for New Relic (NYSE:NEWR)

Receive News & Ratings for New Relic Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for New Relic and related companies with MarketBeat.com's FREE daily email newsletter.